EXECUTIVE MBA PROGRAMME, Weeks 9

Executive MBA ProgrammeSingapore, 10th to 23rd July 2005

Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Overview

EXECUTIVE MBA PROGRAMME, Weeks 9&10, Singapore, 10th – 23rd July 2005

Sunday 10th Monday 11th Tuesday 12th Wednesday 13th Thursday 14th Friday 15th Saturday 16th

08.30 – 19.30 08.30 – 20.30 08.30 – 18.00 08.30 – 12.30 08.30 – 18.00 08.30 – 16.00

SIGMA

Youssef Bissada / Hoda Irani

BissadaSIGMA


Bissada

SIGMA

Youssef Bissada /

Hoda Irani Bissada

AsiaHellmut Schütte

Advanced Course Cluster 1


12.30 – 12.40

Presentation by Kevin Moir ,

Innovasia (Optional)14.00 – 15.30 14.00 – 18.00

Guest Speaker M. François on

“Michelin’s Strategy on Asia & China”


15.45 – 20.30

SIGMA


Bissada

From 19.30 18.15 – 18.45

Opening DinnerEquinox

Presentation by Guillaume de Saint

Bon Helit Air

Sunday 17th Monday 18th Tuesday 19th Wednesday 20th Thursday 21st Friday 22nd Saturday 23rd

Whole day Whole day 08.30 – 12.30 08.30 – 12.30 08.30 – 12.30 08.30 – 12.30

Field Trip

Bangkok Flight(Hotel: Indra

Regent)

Kuala Lumpur Bus

(Hotel: Concorde)

Field Trip

Siam Cement Thai

(Hotel: Indra Regent)

Malaysia Palm Oil Board

(Hotel: Concorde)

Advanced Course Cluster

3


Partner’s Program

me


Advanced Course Cluster 210.30 – 12.30


14.00 – 18.00 14.00 – 18.00 14.00 – 18.00 14.00 – 18.00 14.00 – 16.00


Advanced Course Cluster

2




18.15 – 19.00 18.15 – 19.00 19.30 – 22.00

1

http://www.concorde.net/kl/

http://www.indrahotel.com/


http://www.concorde.net/kl/





Coca Cola S’pore & Asia Pacific

Talk by Victor Mallet (FT) “Of Renminbis and

rearmament: the economic and political impact of China's rise on the rest of Asia”

Alumni & EMBA Activities by

Laurent Aymard

National Costume night at China

Club

2

http://www.chinaclub.com.sg/facilities.html

http://www.chinaclub.com.sg/facilities.html

http://news.ft.com/cms/s/fe87becc-9578-11d9-bc72-00000e2511c8.html

http://www.coca-cola.com.sg/home/



Cluster 1

‘Advanced Negotiation Sessions, Negotiation: The People & the Power’ by Horacio Falcão

‘Entrepreneurial Leadership’ by Professor Randel Carlock

‘Making of Strategy’ By Professor Gabriel Szulanski

Cluster 2

‘International Financial Management’ by Professor Massimo Massa

‘Industry and Competitive Analysis’ by Professor Javier Gimeno

‘Creating Value through Mergers and Acquisitions and Restructurings’ by Professor Jake Cohen

Cluster 3

‘Strategies for Asia Pacific’ by Professor Michael Witt

‘Psychology of Leadership’ by Professor Allan Filipowicz

‘Leading Global Professional Services Firms’ by J. Frank Brown & Richard L. Bair

3


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Sigma Simulation

(Simulation)

Description of the Simulation

The SIGMA Challenge is a comprehensive simulation in international general management which covers the different aspects of international business:

Creating and managing an international manufacturing/marketing venture with the involvement of both foreign and local partners (including if desired the local government)

Dealing with the complexities of the international product life cycle including importation, production, local, and export marketing.

Financing the venture and ensuring the creation of value for the different parties involved.

Taking into account the competition and possible cooperation with other companies in the same industry.

This product enables participants to learn, understand, and handle the intricacies of international management.

Objectives

This package has been designed for executives who operate in a highly competitive, international environment, and who need to get a comprehensive and global view of the businesses in which they are involved. Exposing them to the whole range of international management activities will help them appreciate and deal with all the risks, problems, and opportunities involved. More specifically, they will be encouraged to:

establish the relationship between strategic and operational issues so as to facilitate international business development;

develop practical skills in handling third party government and interest groups in overseas territories, and in particular refine their negotiation skills with these parties and with competitors;

act as operators of an international concern, combining the flair and imagination of entrepreneurs with the hard-nosed behaviour and cost-consciousness of operating managers;

understand the interdependent nature of the most important managerial functions and manage the interfaces between manufacturing, marketing, finance and service;

realise and experience the importance of team work in effective decision making.

Participants' Profile

This simulation is tailored to the needs of "experienced" managers, where the experience has been gained either on the job or during a comprehensive educational programme. These managers hold functions in international business at either the parent company or the operating company level and cover all areas of the business (finance, marketing,

4



production, project management, internal consulting, etc). They may also belong to a business involved in the financing or evaluation of international ventures (banks, government agencies, consulting firms, etc).

5



Preparation

The Sigma Simulation will be held during the Singapore module, from Monday 11 to Wednesday 13 July.

As preparation for this Simulation, you are kindly requested to read the SIGMA Simulation Manual through Chapter 7. Please also complete the Quiz Part One (Chapter 9) & leaf through Chapters 10 & 12.

Optional: If you want to revert to the basics of Financial concepts, you may do so by completing the exercises contained in the booklet ‘Introduction to Finance’. This requires about 1 hour for financial “experts” to a maximum of 4 hours.

6


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Cluster 1 Outlines

Cluster 1

ADVANCED NEGOTIATION SESSIONSProfessor Horacio Falcão

NEGOTIATION: THE PEOPLE & THE POWER

Case 1: The Scope Change Negotiation (Eazy’s Garage)

Case 2: The Internal Negotiation (Team Cash Bonus)

Case 3: The Multiparty Negotiation (Seasia)

Description and Assignment:This course explores the people side of negotiations to enable you to manage relationships to your advantage. We will also cover the concepts of negotiation power and salary negotiation. This course is aimed at enabling you to make the most out of the relationship aspect of a negotiation so as to improve your power and increase the value of your negotiated outcome.

As preparation for sessions 1–4 (first day), you should read cases 1 & 2. The first case will put you in a service contract scope change negotiation involving two parties in an ongoing

relationship. It will allow us to cover the basics of managing the substance separately from the relationship while maximizing the value of both. The second case is a dispute between two departments in a company on how to split a performance bonus given by their boss. It will test your ability to lead under stress and use a team to develop productive long-term and collaborative relationships. When you read and negotiate the cases, consider:

How am I defining a successful relationship? How do they define our relationship?

What is a purely relationship move? How can I have them trust me? What process do I have in mind? How do I open the negotiation? How do I

lead? What are my assumptions and what moves can I make to increase my

power?

In sessions 5–8 (second day), we will concentrate on techniques and processes for managing multiple negotiation parties as well as for taking advantage of the increased number of relationships to build coalitions and obtain more negotiation power. Case 3 will have you represent one of six parties to negotiate the viability and configuration of a huge infrastructure development project finance.

In sessions 9 & 10 (third day), we will summarize the main learnings of the previous sessions, including the basic negotiation course, as we explore the Negotiation Power Formula to better map and understand how to increase our power in every negotiation. We will close this course attempting to identify how to negotiate and overcome the most challenging salary negotiations towards a better compensation package.

7



8



Further Readings: Getting Together: Building Relationships As We Negotiate, by Roger Fisher, Scott

Brown , Houghton Mifflin Company, Boston, 1988 Difficult Conversations: How to Discuss what Matters Most, by Douglas Stone,

Bruce Patton, Sheila Heen, Penguin USA (Paper); 1st edition (April, 2000) Negotiation Analysis: The Science and Art of Collaborative Decision Making, by

Howard Raiffa, John Richardson, David Metcalfe, Belknap Press, (Jan, 2003)

IN PREPARATION FOR DAY 1

Read only: Case 1: The Scope Change Negotiation (Eazy’s Garage) – due 1st day Case 2: The Internal Negotiation (Team Cash Bonus) – due 1st day

1st Day

Building Good Working Relationships

08.30 – 08.45 Introduction & Purposes

08.45 – 10.15 The Scope Change NegotiationPreparationNegotiation

10.15 – 10.30 ** Coffee Break **

10.30 – 11.00 Good Working RelationshipDefinition exercise

11.00 – 11.45 The Scope Change NegotiationReview

11.45 – 12.30 Trust and Relationship building (presentation)

12.30 – 14.00 *** Lunch ***

Leading Negotiation Teams

14.00 – 14.30 Powerful Openings (presentation)

14.30 – 15.30 The Internal NegotiationIndividual preparationTeam preparation

9

http://www.amazon.com/exec/obidos/search-handle-url/index=books&field-author=Patton%2C%20Bruce/102-9484840-6519338

http://www.amazon.com/exec/obidos/search-handle-url/index=books&field-author=Patton%2C%20Bruce/102-9484840-6519338



15.30 – 15.45 ** Coffee Break **

15.45 – 17.30 The Internal NegotiationNegotiationDebrief

17.30 – 18.00 Negotiation Team Leadership (presentation)


Read only: Case 3: The Multiparty Negotiation (Seasia) – due 2nd day

2nd Day

Multiparty Negotiations

08.30 – 08.45 Introduction

08.45 – 09.30 The Multiparty NegotiationPreparation by role

09.30 – 10.30 The Multiparty NegotiationCoalition meetings

10.30 – 10.45 ** Coffee Break **

10.45 – 12.30 The Multiparty NegotiationNegotiation

12.30 – 14.00 *** Lunch ***

Coalition Building

14.00 – 15.00 The Multiparty NegotiationMultiparty debrief

15.00 – 15.45 MULTIPARTY NEGOTIATION (presentation)

15. 45 – 16.00 ** Coffee Break **

16.00 – 17.00 The Multiparty NegotiationCoalition debrief

17.00 – 18.00 COALITION BUILDING (presentation)

10




Prepare only: Bring your own scenarios for salary negotiations (past, present or future)

3rd Day

Negotiation Power & Salary Negotiation

08.30 – 08.45 Introduction

08.45 – 10.30 The 3-Way Coalition exercisePreparationNegotiation

Debrief

10.30 – 10.45 ** Coffee Break **

10.45 – 11.15 NEGOTIATION POWER FORMULA (presentation)

11.15 – 12.30 Salary Negotiation Lab

12.30 – 14.00 *** Lunch ***

11



‘ENTREPRENEURIAL LEADERSHIP’By Professor Randel Carlock

Course Description

Entrepreneurial leadership is an approach to management that encourages careful attention to strategic planning, organization development, and culture. Entrepreneurial leaders appreciate that in the 21st century that how they lead their organization is the competitive difference. This course enables EMBA participants to engage in a dialogue about developing a more entrepreneurial style of management and leadership.

This course is designed for students interested in understanding an entrepreneurial perspective on leading and managing organizations. The course analyzes business and organizational issues and considers the impact of executive action on future outcomes. The course explores conceptual problems, rather than offering answers or formulas, to help executives consider the questions that they will struggle with throughout their management career.

Why this course is relevant

Developing a leadership style based on entrepreneurial thinking and solid management practice is fundamental to personal effectiveness in the 21st century. Never before has the pace of social, technological, economic, and political change been so relentless in business. New values, globalization, and dynamic change are challenging leaders and their organizations to re-assess the way they develop, manage, and motivate people.

Managers often view structure and systems with suspicion but without these tools growth and flawless execution are not possible. Balancing structure with flexibility is a fundamental concept that underpins successful entrepreneurial strategies. Firms need to ensure that they apply structure and systems that support the business’ strategy while encouraging innovation and risk taking.

Today’s executive must be entrepreneurial and capable of responding to the challenges of creating a dynamic working climate. This means developing an organization that creates meaning for people by encouraging them to use and develop their talents and capabilities. Executives need a range of leadership skills and interpersonal techniques to cope with diverse and demanding work situations.

Learning Objectives

The learning outcomes from this course emphasize the importance of developing a leadership perspective and provide analytical techniques to encourage ‘helicopter thinking’ – the ability to raise your sights above operational concerns and examine values, vision, empowerment, and organizational development. The course is designed to integrate entrepreneurial thinking with concepts from the MBA degree and the participants’ management careers.

12



Understanding the importance of creating an organization climate that encourages high performance

Appreciating the range of leadership skills and interpersonal techniques that managers need to motivate and energize an organization

Practicing thinking “out of the box” in decision making, planning and problem solving

Recognizing the importance of human values in creating meaning for all stakeholders

Develop new coaching skills and improved self-awareness

Pedagogical Methods

This course uses a variety of learning activities including case discussion, lectures, personal assessments, a coaching exercise, small group discussions, self-assessment, videos, lunches, readings, and short papers. Analyzing case studies and the participants’ personal experiences support these developments of new insights, often quite subtle, that can only be obtained by exploring real world situations and the possible outcomes that manager’s face. The cases and course materials explore the affect of management actions on organizational performance. The cases used are eclectic and will be unlike those that you have previously experienced at Insead.

The course is intended for individuals interested in making a personal commitment to a personal learning experience based on analysis, dialogue, self-assessment, and sharing experiences that strengthens them as general managers. Students successfully completing the course should develop the knowledge, attitudes, and skills that enable them to maker fewer mistakes than their competition thereby maintaining their firm’s growth and long-term economic viability. This course is about managing, which is a messy proposition at best!

Assignments

I. Complete the KAI Worksheet

II. Read and prepare questionsCase: The Frog and RosbifCase A of the Frog and Rosbif pub describes a venture project of two INSEAD MBAs who decided they didn’t want to work for anyone else and what the world needed was authentic British pubs in Paris. We will have a classroom dialogue with the founders via a DVD as they challenge the class to consider the decisions they faced as they grew their now successful chain of pubs beyond Paris.

How would you assess Paul and Thor’s leadership?

Case: FROG Pubs* A, B, C, D, E, F *Read Case A before class, the rest of the parts will be distributed in class

Case: ABC Telecommunications Manufacturing

After his first week on the job the new CEO is concerned about his decision to join ABC Telecommunications to lead its turnaround effort. He now realizes that he was overly optimistic when he promised the board a 36-month recovery. A few days ago he thought

13



he was the right man for the job but the odds do not look good for one person to change a firm that has a corporate culture based on ten years of missed opportunities and bad execution.

1. What are the issues facing ABC Telecommunications?2. What recommendations would you make to the CEO about his personal

leadership style?3. What are the highest priorities for change at ABC?4. How should a CEO send a message to the employees?

14



Case: Growing Pains at Waterway

The founder typically identifies an opportunity and launches but sustained growth requires that the firm develop a business strategy and sound organization. It is during this second phase or as the firm matures that entrepreneurial leadership is critical.

1. How would you assess Waterway’s current situation?2. What are the strategic issues Maher is facing?3. What recommendations would you make to Maher and Carter?4. Is Waterway a good career opportunity for Carter?

III. Read Chapter One, Leadership Style, Beyond Entrepreneurship by J. C. Collins and W.C.

Lazier

15



‘MAKING OF STRATEGY’By Professor Gabriel Szulanski

'Companies used to have strategy meetings twice a year, now we have them twice a week.' The fact is that the metabolism of enterprise is changing dramatically! eBay CEO Meg WhitmanStrategy making efforts are more and more frequent in modern corporations. For this reason, increasing attention is being paid to how strategy making is managed. What used to be the sole province of a company’s senior officers is now emerging as an increasingly democratic and participative process that blends imaginative junior staffers with disciplined old timers.

Yet, good strategy making remains an art. That is because as more people participate it is more difficult to start and sustain the process, it takes more time to complete it, and it consumes valuable time and resources. For these reasons, companies face new and difficult choices in their strategy making. On the one hand they must involve more people in the process; on the other hand, they have to make decisions faster.

This course aims to make you a sophisticated strategy maker. You will learn to observe, analyze, and manage the process of making strategy. You will learn to appreciate how strategy is made in the organization. You will learn to appreciate the quality of the process. You will learn to improve the process.

We first explore strategy making by discussing classic work and two recent ideas that proved particularly influential. Next we will analyze contemporary strategy making prescriptions and learn to classify them and evaluate the rigour of the underlying thinking. Then we will develop a framework (TFAS) to analyze the strategy making process and to assess its quality and will apply the framework to analyze and critique a planning prescription and a strategy making prescription in class. Finally teams will evaluate strategy making in a company of their choice and present their conclusions.

Who should take this course?The contents of this course have proven particularly useful to strategy consultants, to students who develop business plans for themselves or for others, to students who participate in strategy making and new business development efforts of medium and large scale corporations, and also to students who are about to be promoted to a general management position.

Day 1 - Introduction

Session 1: The Making of Strategy: From “Planning” to “Strategy Making”

Readings:1. Courtney, Kirkland & Viguerie, “Strategy under Uncertainty,” The McKinsey Quarterly, 2000 Strategy Anthology

Session 2: The Making of Strategy: Two particularly influential ideas

Readings: Hamel, “Strategy as Revolution,” HBR 96405, July-August 1996Porter, “What is Strategy?” HBR 96608, November-December 1996

16



Preparation questions: What practical implications can you draw from Gary Hamel's Strategy as

Revolution? What is strategy according to Porter? What is the role of leadership?

17



Individual Assignment: Analyze a prescription of your choice. A list of prescriptions to consider will be provided. Deliverable is a short write up.

Day II – Developing Sophistication

Session 3: The analysis of prescriptions

Reading: Barabba, Pourdehnad, & Ackoff, “On misdirecting management,” Strategy & Leadership 30, 5 2002, pp. 5-9Kellaway, Lucy, “Beware of the senseless dumbing up of management thinking,” Financial Times, Monday May 23, 2005

Supplemental Readings:Szulanski & Amin, “Learning to Make Strategy: Balancing Discipline and Imagination”, Long Range Planning, 34 (2000), pp. 537-556

Session 4-5: The TFAS framework

Triggers + Framing:

Readings: Burgelman & Grove, “Strategic Dissonance,” CMR Vol. 38, No. 2, Winter 1996

Preparation questions: Define strategic dissonance, strategic inflection point, and strategic

recognition. How do these concepts help top management in extremely dynamic

environments decide on the right strategic intent?

Supplemental Readings:1. Heifetz, “Mobilizing Adaptive Work”, The Belknap Press of Harvard

University Press, Chapter 4 of Leadership Without Easy Answers, pp. 69-76 (1998)

2. Schoemaker & Russo, “Managing Frames to Make Better Decisions”, John Wiley & Sons, Inc, Chapter 8 of Wharton on Making Decisions (Hoch & Kunreuther), pp. 131-155 (2001)

3. Edmondson, “Framing for Learning: Lessons in Successful Technology Implementation”, CMR Vol. 45, No. 2, Winter 2003

Alternatives:

Readings: Hammond, Keeney, & Raiffa, “Alternatives,” HBSP, Chapter 4 of Smart Choices, pp. 47-64 (1998)

Preparation question: How can the process of alternative generation be improved?

Supplemental Readings: Kleindorfer, Kunreuther & Schoemaker, “Problem Finding and Alternatives

Generation”, Cambridge University Press, Chapter 2 of Decision Sciences: An Integrative Perspective, pp. 53-63 (1993)

18



Selection:

Reading: Cooper, “Picking the Winners” Effective Gates and Portfolio Management,” Perseus Publishing, Chapter 8 of Winning at New Products: Accelerating the Process from Idea to Launch, pp. 213-251 (2001)

Preparation Question: Explain the difference between the "gates dominate" and the "portfolio review dominates" approaches to selection.

Supplemental Readings: Coy, “Exploiting Uncertainty”, Business Week, 7 June 1999, pp. 118-120 Kim & Mauborgne, “Knowing a Winning Business Idea When You See One”,

HBR R00510, September-October 2000

Session 6: Case study

Case: Szulanski, “General Instrument Corporation: The Balancing Act of Strategy Making” (GI), The Wharton School, November 1999

Reading: Goold and Campbell, “Many Best Ways to Make Strategy,” HBR 87604, November-December 1987

Team Assignment: Analyzing strategy making in a company of your choice (several case studies be made available). Deliverable is a short presentation for session 9.

Day III – Honing Sophistication

Session 7: Analyzing a Planning Prescription: Ackoff – Creating the Future of the Enterprise

Reading: Ackoff, “Types of Management,” Oxford University Press, Chapter 3 of Recreating the Corporation: A Design of Organizations for the 21st Century, pp. 45-60 (1999)

Session 8: Analyzing a Strategy Making Prescription: Markides – Strategic Innovation

Reading: Markides, “A Dynamic View of Strategy,” MIT SMR Reprint 4035, Vol. 40, No. 3, pp. 55-63 (Spring 1999)

Session 9: Group presentations and conclusion

Individual Assignment (to be completed before the second day)

Pick one prescription from the following list:

Hypercompetition – D’Aveni.Companies must actively disrupt the status quo and seek to create a series of temporary advantages.

Value Innovation – Kim and Mauborgne.

19



Companies must seek to make the competitors irrelevant through value innovation: blockbuster ideas, quantum leaps.

20



Imitation – Schnaars.Imitation is neither rare not ineffective. It is in fact a powerful and frequently used entry strategy that, like a long-term spouse, is often unappreciated and taken for granted.

Profit pools – Gadiesh.New lens thinking about an industry in terms of profit concentration instead of revenue concentration. Profit pools is the total profits earned in and industry at all points along the industry value chain.

Patching – EisenhardtIn a landscape of continuous flux, it's more important to build corporate-level strategic processes that enable dynamic repositioning than it is to build any particular defensible position. That's why smart corporate strategists use patching, a process of mapping and remapping business units to create a shifting mix of highly focused, tightly aligned businesses that can respond to changing market opportunities

Simple rules – Eisenhardt and SullCompanies know that the greatest opportunities for competitive advantage lie in market confusion, but they recognize the need for a few crucial strategic processes and a few simple rules companies with simple-rules strategies must follow the rules religiously and avoid the temptation to change them too frequently.

Time Pacing – Eisenhardt and BrownChange proactively, through regular deadlines

Spheres of Influence – D’AveniSpend more time establishing and developing their "sphere of influence," or the core market or markets that they own

Resilience – HamelIn a turbulent age, the only dependable advantage is a superior capacity for reinventing your business model before circumstances force you to. Achieving such strategic resilience isn’t easy. Four tough challenges stand in the way

Blue Ocean – Kim and MauborgneIn blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans—that is, in all the industries already existing--companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody.

2. Locate and read the article/book that presents the prescription

3. Answer the following questions:

Is the prescription about discipline, imagination or both? Does this prescription meet the correlation test? Does this prescription meet the causality test? What recommendations does the author make for the management of the strategy making process?

21



in particular, see if you find prescriptions to how the problem should be defined (framing), how alternatives solutions should be generated (alternative generation), and how to choose a solution (selection)?

22



Cluster 2

‘INTERNATIONAL FINANCIAL MANAGEMENT’By Professor Massimo Massa

The main focus

Companies are nowadays getting more international. What are the implications of this from a financial perspective? How do we evaluate an international project? How do we account for country and currency risk? How do we choose our shareholders when we go international? Which market should we tap into to raise new capital? Where is it better to borrow? How can we reduce our cost of capital by issuing in different countries/currencies? How do we hedge the economic and transaction exposure that arises from operating internationally? These are the types of questions we will address in this course. We will concentrate on the features that make operating abroad a unique challenge and we will see how to turn them in sources of comparative advantage.

Who should take this course?

The course is targeted to participants who are interested in an international career and want to have a sound grasping of the main financial topics involving the international dimension of a company. While quantitative, the course is mainly focused on providing the participants with a broad and integrated framework that allows them to master the complexity of the problems facing a firm that is exposed to international markets. Global perspective and integrated problem solving are stressed. The perspective will be that of a CFO/CEO.

The structure

The course is based on lectures and cases. Each concept will be directly applied in a real case situation. The course is structured in three modules. 1) International cost of capital and capital budgeting, 2) Hedging in an international context, 3) Raising funds abroad. The first module addresses the issues of how to evaluate international projects, how to reduce the cost of capital by targeting particular shareholders and how to benefits from international diversification. The second module studies how the company may eliminate the risk from operating internationally. We will focus on different types of risks and sources of uncertainty and evaluate the strategies needed to address them. We will consider how to choose among different financial instruments (futures, forward, option, swaps) to hedge in the most effective and least expensive way. The third module focuses on where and how to raise funds. We will consider different bond and equity possibilities and study the most effective strategies in terms of cost, flexibility, and risk.

23



Required Readings for the course

Bruno Solnik, Chapter 1 Foreign Exchange * Ian Giddy, Chapter 7 Currency Forwards and Futures Markets ** Case Study 1: Merton Electronics "Goldman Sachs Nikkei Put Warrants 1989" (not to be solved, just to be

read) ** "Identifying, measuring and hedging currency risk at Merck", Lewent, Kearney

and Merck & Co., Inc. ** "Did Ashanti break the golden rule?” Corporate Finance * Eun and Resnick, Chapter 12 and 13 Management of Economic and Transaction

Exposure * Case Study 2: Tiffany and Co 1993 Solnik, Chapter 9, Bonds: Markets and Instruments * Case Study 3: R. J. Reynolds International Financing Eun and Resnick, Chapter 17 International Capital Budgeting * "Incorporating country risk in the valuation of off-shore projects", Lessard ** Case Study 4: Prince International "Globalization, corporate finance and the cost of capital", Stulz ** "BP Amoco prepares NYSE listing" FT. * Case Study 5: Compania de Telephonos de Chile

Background readings, available at INSEAD library

Bruno Solnik, Chapter 1 Foreign Exchange Parity Relations Bruno Solnik, Chapter 4 and 5 International Asset Pricing: Theory and Tests and

The case for International Diversification "Global Equity Markets: the case of Royal Dutch and Shell" (the case is to read

only) “A practical approach to the international valuation & capital allocation puzzle”,

Salomon SmithBarney. "Event risk indicator handbook", JP Morgan "A framework for risk management" Froot, Scharfstein and Stein "Should firms use derivatives to manage risk?", Fite and Pfleiderer Ian Giddy, Chapter 8 Foreign Exchange Options "Exotic Currency Options: An Introduction", Sinnah Giddy, Chapter 13 Currency and Interest Rate Swaps

There is no required book for the course. However, many of the topics that are discussed in the course are well covered in the books listed below. You may want to have a personal copy for future reference.

Cheol Eun and Bruce Resnick, International Financial Management, Irwin/McGraw-Hill

Ian Giddy, Global Financial Markets, Heather Bruno Solnik, International Investments, Addison-Wesley

24



‘INDUSTRY AND COMPETITIVE ANALYSIS’By Professor Javier Gimeno

Course Description

The dynamism in the business environment requires firms to continuously assess their strategic direction. Today, many firms around the world are experiencing unprecedented levels of market liberalization, redefinition of industry boundaries, technological evolution, and competition from new and disruptive business models. New strategic opportunities emerge in that dynamic context, while the value of past strategies and market positions may erode equally quickly. To navigate these environments, executives need a “strategy compass” to foresee, identify and exploit future attractive opportunities in the competitive environment, and allocate limited organizational resources in the most effective way.

The course Industry and Competitive Analysis (ICA) focuses on how to achieve above-normal returns in a competitive context. Our main focus is at the level of the single business, although we always try to understand the complete value chain in which a business is embedded. We center on understanding two questions.

What will be the most valuable positions in the industry, market, and value chain? Profit pools tend to accumulate in some industries, and in particular stages of the value chain. We will discuss how to forecast and manage industry and supply chain profitability, how to identify where the future profit pools will emerge, and how to gain a dominant position in those emerging profit pools. We will also discuss how to manage industry structure and the business ecosystems to increase profitability.

How can firms better exploit their resources and capabilities to gain and sustain a competitive advantage? Firms can achieve superior profitability even in very unattractive industries, but that requires the development of superior positioning strategies that create value. We will discuss how to develop and exploit capabilities that give your firm a competitive advantage, and how to make competitive advantage sustainable against competitive threats.

Who should take this course? The ICA course will be most valuable for participants involved in setting strategic direction at the level of the single business unit within an industry. We will focus on how to compete more effectively in an industry. Any managers with general management responsibilities will benefit from this course, as well as participants involved in strategic planning and business development activities. The course will be most beneficial for executives in businesses facing strategic challenges that require reassessment of strategic direction, such as those facing new competition, technological disruption, or industry restructuring.

Recommended Textbook

The recommended textbook for the course is: David Besanko, David Dranove, Mark Shanley and Scott Schaefer, Economics of

Strategy, New York: Wiley, 3rd edition, 2004.

This textbook provides the best state-of-the-art presentation of economic principles and tools applied to strategic analysis.

25



Course Overview

Strategy and the Search for Superior Returns: Position and Resources Analyzing industry and supply chain profitability and competitive advantage

(cases: European Airline Industry, Ryanair; Lufthansa) Value Chain Configuration: Vertical and Horizontal Integration (case: Bang &

Olufsen) Creating and Exploiting Powerful Market Positions (case: Asahi Breweries Ltd) Leading Business Ecosystems: Network Externalities and Critical Mass Adoption

(case: Mobile Internet in Europe: i-mode versus Vodafone live! in 2003)

Detailed Schedule

Session 1Tuesday, July 19thStrategy and the Search for Superior Returns: Position and Resources

The first session (2 hours) will cover the main theories and analytical tools that have informed strategy practice over the last 30 years. We will focus in particular on new ideas in industry analysis (beyond Porter’s 5-forces), and new ideas on the analysis of competitive advantage.

Readings: “Profit Pools: A Fresh Look at Strategy”“Strategic Positioning for Competitive Advantage”

Session 2Wednesday, July 20thAnalyzing Industry and Supply Chain Profitability and Competitive Advantage

This session will allow us an in-depth analysis of the profitability of an industry and its associated supply chain, and how firms with different strategies cope with the competitive context. The case highlights how industry structure shapes profitability, but also how firms can undertake strategies that change the structure of the industry (for the better or worse) as well as adapting to the industry context. The cases on Ryanair and Lufthansa focus on the differences in opportunities for firms with very different positions and resources.

Cases: The European Airline Industry on a Collision CourseRyanair in 2003 (required for half the class; optional for the other)Lufthansa in 2003 (required for the other half the class; optional for the rest)

Questions:1. Why is the airline industry unable to generate reasonable shareholder returns on

a sustainable basis? How do you expect this to change in the next 10 years? What can major European flag airlines do to improve the profitability of their industry?

2. What are the sources of competitive advantage of low-cost carriers (LCCs) versus flag carriers? In what markets or segments are LCCs likely to dominate flag carriers? In what markets are flag carriers stronger?

For those focusing on Ryanair case: How does Ryanair’s strategy differ from that of other LCCs (easyJet,

Debonair)? Who is better positioned, easyJet or Ryanair? Can Ryanair maintain its superior performance against other network

incumbents, charters and other (existing or new) LCCs?

26



What are the potential growth opportunities for Ryanair? How do you evaluate Ryanair’s capability in pursuing such growth opportunities? What should Ryanair do?

27



For those focusing on Lufthansa case: Evaluate the different strategic responses of BA (pre- and post-Go), Air

France, SAS and Alitalia to the LCC challenge. What should Lufthansa learn about how to deal with the LCC challenge? How should Lufthansa respond to the low-cost challenge?

In the medium term, how should it change its strategic position to compete more effectively in the industry?

Readings: “The Competitive Dynamics of Network-Based Businesses” (handed out in class)

Session 3Thursday, July 21stValue Chain Configuration: Vertical and Horizontal Integration

This session will focus on the appropriate configuration of the value chain to enhance and fully exploit firm competitive advantages. We will focus on three factors: efficiency, transactions, and market power, which influence optimal value chain configuration. The case on Bang & Olufsen, and some discussion of Dell’s recent entry moves will help us explore the topic.

Cases: Bang & Olufsen and the Electronics Entertainment Industry in 2003Whose lunch is Dell going to eat next?

Questions:1. Examine B&O’s distinct positioning in the high-end segment of the electronics

industry. Does the company have a competitive advantage? How sustainable is it?

2. Does B&O current distribution strategy make strategic sense? In particular, what should B&O do to penetrate the US market?

3. How should B&O configure its value-chain activities to leverage and exploit its distinctive capabilities?

Readings: “When and When Not to Vertically Integrate”“Profiting for Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy”“Printer Wars (A): Dell’s Entry in the Printer Business” (handed out in class)

Session 4Friday, July 22ndCreating and Exploiting Powerful Market Positions

This session will focus on how to compete in ways that allow you to gain a dominant market position vis-à-vis competitors, and the benefits and risks of pre-emption strategies. The case on Asahi Breweries presents a focal decision about how much to commit to an emerging product opportunity.

Cases: Asahi Breweries Ltd.Questions:

1. Why has Kirin been so dominant in the Japanese beer industry? What are the sources of its competitive advantage? Why has it been so sustainable over the last 40 years?

2. Would you evaluate Asahi’s turnaround as successful? How effective were Murai and Higuchi in managing the turnaround of Asahi?

28



3. Should Higuchi and the Board of Asahi approve or reject the investment plan presented in Exhibit 1?

Readings: “First-Mover Advantages”“Commitment versus Flexibility” (handed out in class)

29



Session 5Saturday, July 23rdLeading Business Ecosystems: Network Externalities and Critical Mass Adoption

This session will focus on strategy in situation when business success depends on the adoption by a critical mass of users or support by a critical mass of providers of complementary products. In this situation, managers must think through the effect of their actions on the adoption incentives by customers and complementors, and creating positive reinforcement loop among them that makes the strategy effect. NTT DoCoMo managed to do precisely that with the introduction of i-mode in Japan, but the context in Europe is proving very different.

Cases: Mobile Internet in Europe: i-mode versus Vodafone live! in 2003 (will be made available online in due course)

Questions:1. Evaluate the entry strategies of DoCoMo and Vodafone on the Internet mobile

segment. Which strategy will be more effective in increasing adoption and creating a viable ecosystem of complementary services?

2. How should Nokia respond to the emergence of the Internet mobile platforms? 3. What can DoCoMo do further increase the penetration of i-mode services in

Europe?

Readings: “Strategy in markets with demand-side increasing returns”“The Elements of Platform Leadership” (handed out in class)

30



‘CREATING VALUE THROUGH MERGERS AND ACQUISITIONS AND RESTRUCTURINGS’

By Professor Jake Cohen

The course focuses on the design, analysis, and implementation of financial strategies aimed at repositioning and revitalizing companies faced with major competitive or environmental challenges, problems, and opportunities. The course helps students learn how to create corporate value by restructuring a company or by undergoing a business combination. The course will examine the following area: change forces and mergers, business combination strategy, US and EU antitrust policies, deal structuring and accounting, mergers and takeovers – theory and practice, alternative paths to growth, valuation, and restructuring and financial engineering.

A mixture of lecturing, case discussions, and intensive sharing of experience will provide an interactive learning environment allowing for an in-depth understanding of the issues.

Textbook“Takeovers, Restructurings, and Corporate Governance,” Fourth Edition, by J. Fred Weston, et al.

Cases Harnischfeger Corporation, HBS Case #9-186-160 Humana Inc., HBS Case #9-294-062 USX Corp., HBS Case #9-296-050 Sealed Air Corporation’s Leveraged Recapitalization, HBS Case #9-294-122 FAG Kugelfischer: A German Restructuring, HBS Case #9-298-046 Southcorp (A) – (D): INSEAD Cases

Other supplementary readingsWill be provided in class

31



Cluster 3

‘STRATEGIES FOR ASIA PACIFIC’By Professor Michael Witt

Course Objectives

“Strategies for Asia Pacific” is an introductory international business course, applied to the Asia Pacific region. Its goal is to equip you with a basic toolset for (1) understanding Asian markets, (2) entering them, and (3) operating in them. The course emphasizes hands-on, how-to learning and involves high levels of class discussion, group work, role play, and independent work.

In introducing Asian business, the course draws on a cross-section of functional tools, with an emphasis on breadth rather than depth in any one area. Strategies for Asia Pacific is not, despite the title, a strategy course as such, though it does address pertinent elements of strategy.

You will benefit most from the course if you are a novice to the region or if your exposure to Asia has been limited (both in time and geographically).

By the end of the course, you should be better positioned to capitalize on business opportunities in the Asia Pacific region. Specifically, you will have developed:

a decent understanding of Asian economies and how they work; a basic ability to use the Business Systems Model to acquaint yourself with new

business environments; an increased ability to formulate international strategy and entry decisions and a

heightened awareness of salient issues; a sense of prominent operational issues in Asia and a notion of how to approach

them.

Many of the skills you will acquire are equally applicable to international business in other parts of the world.

The geographic scope of this course includes Japan, China, the Asian NIEs (Korea, Taiwan, Hong Kong, Singapore), and the remaining economically attractive ASEAN countries (Thailand, Malaysia, Indonesia, Philippines, Vietnam).

Course Outline

The course consists of three interrelated modules:

The business environment (Sessions 1-2, 5): An introduction to Asian economies and how they work; an outlook for the future1. Strategy and entry (Session 3): Frameworks and applications for entering new

markets2. Operational issues (Sessions 4+5): Salient issues for managing operations in the

region

32



Requirements

Much in this course hinges on an understanding of the Asian business context. We will discuss the most important economies in considerable detail, but given the brevity of the course, a certain amount of contextual pre-reading on the region is essential for us to be able to hit to ground running. It is therefore absolutely essential that you read and in good part internalize the country information provided in Pocket Asia . Since the last edition of the Pocket Asia has appeared in 2002, we will provide you an update of the essential statistics as the course date draws nearer.

If you wish to go into further depth, EIU Country Profiles are an excellent source; please contact your Program Coordinator for copies.

Prerequisites

No prerequisites.

Readings

Andrews, John (2002). Pocket Asia (7th Edition). London: Profile Books.

Course package

Class Sessions

Session 1Introduction to the Course; the Asian Environment, Part IThe Business Systems Framework introduced and applied to Japan

Reading: Pocket Asia, everything pertinent to the countries covered in this courseCase: Japan: The Miracle Years (HBS)

Session 2The Asian Environment, Part IIThe business systems of China and the ASEANIEs

Readings: Redding, Gordon (2002). The Capitalist Business System of China and its Rationale. Asia Pacific Journal of Management, 19, 2/3, 221-249.Redding, Gordon (2001). The Smaller Economies of Pacific Asia and their Business Systems. In Rugman, Allan, & Thomas Brewer (Eds.), Oxford Handbook of International Business, pp. 760-781. Oxford, UK: Oxford University Press.

33



Session 3Market Entry and Entering ChinaCountry analysis for market and the sense and non-sense of going to China

Readings: Behind the Mask: A Survey of Business in China, Economist, 20 March 2004.Case: China’s Beer Wars (A) (PRC)

Session 4Partnerships; General Management ExercisePartnership troubles; a day in the life of a GM, full of tough choices

Readings: Chapters 7+10 of Lasserre, Philippe, & Hellmut Schütte (1999). Strategies for Asia Pacific: Beyond the Crisis. New York: Palgrave.

Cases: Korea Beral (C)The In-Tray (Thailand)

Session 5Ethics and Corruption; OutlookCorruption in Asia: Fight or accept? Class summary and scenarios for the future of Asian business

Case: Changmai Corporation (A)

34



‘PSYCHOLOGY OF LEADERSHIP’By Professor Allan Filipowicz

This elective applies cutting edge findings from psychology and organizational behaviour to issues of leadership. As managers and leaders, your ability to handle interactions, both one-on-one and in small groups, far outweigh any technical skills you might have. And there has been quite a lot of research done on those topics, particularly in the disciplines of social psychology and organizational behaviour. What has been missing, and what this course will emphasize, is how to translate those research findings into practical tools, changing how you do things next Monday.

The course is designed to provide you with concepts and competencies to help you throughout your managerial careers. The concepts will include both time-tested ideas and very recent findings, putting you at the cutting edge of management thinking. But learning the lessons intellectually is the easy part. You will also have the chance to practice and experiment with these ideas. Through class exercises, videotaped exercises and cases, you will have the opportunity to turn the concepts into competencies. The course will develop your repertoire of skills in four areas: individual effectiveness, emotional intelligence, leadership effectiveness, and team performance. A brief overview of the lessons covered in each area is given below:

Individual effectiveness: Getting things done Overcoming barriers to change Goal setting, implementation and follow through

Emotional Intelligence Identifying and understanding emotions in the workplace Managing and using emotions as a leadership tool

Leadership effectiveness: Understanding and influencing Understanding others’ behaviour Learning to listen How your beliefs drive others’ actions Exercising influence one-on-one Managing interpersonal conflict

Team performance Building effective teams Getting your teams to thrive in a changing environment

A brief word on class preparation: Cases must be read and prepared before class. Readings are optional but highly recommended. They cover some of the more important articles on leadership and managing people. And if you don’t read them now, you probably never will. Background readings will allow you to delve deeper into the subjects that you find particularly appealing.

35



Session 1Individual effectiveness: Getting things done

Individual effectiveness is a prerequisite for becoming an effective leader. And even at your level, there is potential for improvement. Improvement implies change, which can be remarkably difficult. We will first identify barriers to change, and how to get around them. We will then focus on one of the main drivers of individual effectiveness, the ability to set, implement and follow through on goals.

Readings: Deutschman, A. 2005. Change or die. Fast Company, May, pp. 53-62. Locke, E. A. 2001. Motivation by goal setting. In R. T. Golembiewski (Ed.),

Handbook of Organizational Behaviour (pp. 43-56). New York: Marcel Dekker.

Background readings:(Not required for class, but useful sources of further information) Dweck, C. S. 2002. Beliefs that make smart people dumb. In R. J. Sternberg (Ed).

Why smart people can be so stupid (pp. 24-41). New Haven, CT, US: Yale University Press.

Gollwitzer, P. M. 1999. Implementation intentions: Strong effects of simple plans. American Psychologist, 54, 493-503.

Bandura, A. 1999. Self-efficacy: Toward a unifying theory of behavioural change. In R. Baumeister (Ed.), The Self in Social Psychology (pp. 285-298). Philadelphia, PA: Psychology Press.

Session 2Emotional Intelligence

Emotional intelligence is one of the hot management topics in the business press. We will take a critical look at this concept, separating the learnable skills from the popular fluff. We will then explore ways to improve your emotional intelligence. As a first step, we will learn to identify emotions better, and then seek to understand how and when emotions influence judgments and decision-making. We will then learn techniques for managing and using emotions as a leadership tool.

Readings: Ekman P. 2003. Emotions revealed: Recognizing faces and feelings to improve

communication and emotional life. New York: Henry Holt.pages 94-109pages 133-147pages 160-171pages 183-189pages 204-212 Burns, D. D. 1999. Understanding your moods: You feel the way you think. In

Feeling good: The new mood therapy (pp. 13; 28-49). New York: Avon.

Background readings:(Not required for class, but useful sources of further information) Caruso, D., & Salovey, P. 2004. The emotionally intelligent manage. San

Francisco: Jossey-Bass.pages 83-99pages 115-133

36



Session 3Critical skills for leadership effectiveness: Understanding others

Leaders influence people. And unless you, as a leader, understand why people behave the way they do, your efforts to influence them will have random, unpredictable effects. We will first look at understanding others' behaviour in general, and how we can do so more flexibly and accurately. We will then turn to a more subtle and difficult skill, learning to listen.

Readings: Clawson, J. Why people behave the way they do, #UVA-OB-0183. Athos, A. & Gabarro, J. 1978. Chapter 9: Listening for and responding to another

person’s meaning. In Interpersonal Behaviour (pp. 414 – 431). Englewood Cliffs, NJ: Prentice-Hall.

Background readings: (Useful sources of further information) Athos, A. & Gabarro, J. 1978. Chapter 8: Understanding another person; Chapter

10: Reflective responses; Chapter 11: Reflective technique in broader perspective. In Interpersonal Behaviour (pp. 398-413; 432-460). Englewood Cliffs, NJ: Prentice-Hall.

Session 4Critical skills for leadership effectiveness: Influencing others

Having spent the last session on understanding others' behaviour, we turn to the topic of influence. Whether you intend it or not, what you believe about others drives their behaviours. We will first learn how to harness this ubiquitous and powerful effect. We will then examine a set of specific persuasion tools. Influence implies conflict. We will close the session by developing skills to help you manage interpersonal conflict.

Case: “Lee Coker,” INSEAD #03/97-4559.

Readings: Senge, P., Kleiner, A., Roberts, C., Ross, R., & Smith, B. 1994. Mental Models. In

The Fifth Discipline Fieldbook (pp. 235-268). New York: Currency Doubleday.

Background readings: (Useful sources of further information) Manzoni, J. F., & Barsoux, J. L. 1998. “The set-up-to-fail syndrome”. Harvard

Business Review, HBR #98209. Eden, D. 1992. Leadership and expectations: Pygmalion effects and other self-

fulfilling prophecies in organizations. Leadership Quarterly, 3, 271-305. Cialdini, R. 2001. Harnessing the science of persuasion. Harvard Business

Review, October, p. 72-79

37



Session 5Team performance

In this final session, we move from studying one-on-one relationships to studying groups and teams. So far, you have probably taken a process approach to improving your team’s effectiveness. Yet structural factors are major drivers of effectiveness. And these elements are now under your control. We will first cover how to build and run effective teams, and when they are not a good idea. Regardless of how well you have set up your teams, they must be able to adapt to changes in the environment. We will next focus on that skill set, looking at team learning and psychological safety.

Case: “Group process in the Challenger launch decision,” HBS #9-603-068.

Readings: Hackman, J. R. 1999. Why teams don’t work. In F. Hesselbein & Cohen, P. M.

(Eds.), Leader to Leader (pp. 335-347). San Francisco: Jossey-Bass.

Background readings:(Not required for class, but useful sources of further information) Argyris, C. “Teaching smart people how to learn.” Harvard Business Review, HBS

#91301. Hackman, J. R. 1987. The design of work teams. In J. Lorsch (Ed.) Handbook of

Organizational Behaviour (pp. 315-342). Englewood Cliffs, NJ: Prentice-Hall.

38



‘LEADING GLOBAL PROFESSIONAL SERVICES FIRMS’By J. Frank Brown & Richard L. Bair

IntroductionIn this course, our goal is to introduce you to some of the leadership issues of managing a global professional services firm. We have identified cases that represent a number of the important professional services firm industries including law, accounting, investment banking and consulting. We will examine cases at well known firms such as Goldman Sachs, Wachtell Lipton, Arthur Andersen, and McKinsey. As Global Leaders and senior partners at PricewaterhouseCoopers, we will also discuss issues from our own firm, one of the largest professional services firm in the world.

Cases

Profitability Drivers in Professional Service Firms

Presents a simple model of the drivers of profitability in a professional service partnership and conducts an empirical exploration of the determinants of profitability among AmLaw 100 firms over the period 1994 to 1999. Teaching Purpose: To help students understand the drivers of economic performance in professional service firms.

"Marketing" at Wachtell, Lipton Rosen & Katz

Describes the history and unique operating principles of the most successful corporate law firm in the country. Closes with a lengthy quotation by Martin Lipton, who is one of the firm's founding partners and who is described in an American Lawyer article as the "Elvis Presley of the M&A field." Lipton reflects on certain activities that the firm carries out aimed at building its reputation. Whether or not these activities constitute marketing is left an open question.

Strategy and Positioning in Professional Service Firms

Provides a definition of strategy, distinguishes between corporate and practice strategy, and discusses how and why developing and implementing strategy for professional service firms is different from developing and implementing strategy for commercial firms. Discusses how practice strategy involves positioning the practice on a spectrum of services and aligning the organization and its professionals to the position. Practices are subjected continuously to forces that move their positioning. To be successful, practices must dynamically reposition or realign themselves. Ends with a discussion of the corporate strategy challenges facing multipractice professional service firms. Teaching Purpose: To provide a conceptual foundation to enrich classroom discussion of professional service firm strategy and positioning.

The Merger of Coopers & Lybrand and Price Waterhouse (A) & (B)

Arthur Andersen LLP

Highlights the history of Arthur Andersen and the collapse of the firm following the Enron Corp. audit and the Department of Justice obstruction of justice conviction. Teaching Purpose: Role of audit firms, accounting industry, and internal controls.

39



40



Ernst & Young LLP

Highlights the history of Ernst & Young and the issues related to the sale of the consulting business as well as the founding of the legal unit. Follows on the issues raised at Andersen regarding the role of the Big Four firms and how they need to deal with issues of conflict of interest and internal controls to ensure independence. Teaching Purpose: Role of auditors, internal controls, and conflict of interest.

PricewaterhouseCoopers Consulting – The Road to Divestiture

History of Investment Banking

The Goldman Sachs IPO (A)

Addresses the proposed IPO and raises questions regarding how agency costs may rise or fall as Goldman converts from a private partnership to a public limited corporation. Teaching Purpose: Elaboration of agency theory and corporate governance in a professional service organization.

McKinsey & Co.

One of the world's premier consulting firms faces challenges of globalization, growth, and competitive pressures. This case describes the 75-year history of the firm and how its strategy and culture evolved through 2001.

Corporate Governance

The Essence of Professionalism: Managing Conflict of Interest

Argues that central to being a professional is the pledge to manage conflicts of interest such that client interest is placed foremost. Teaching Purpose: Used to inform discussions of professionalism and professional responsibility.

Broken Trust: Role of Professionals in the Enron Debacle

Discusses the role of professionals in the Enron debacle. Argues that professionals failed to prevent or predict Enron's collapse because of the conflicts of interest they faced. Concludes with observations on management and regulation of conflicts of interest facing professionals.

PricewaterhouseCoopers: Addressing the Indian Ocean Tsunami Disaster

“CSR – A religion with too many priests?” Professor Michael Porter (will be made available online)

Human Capital

Staffing in Professional Service Firms

41



Discusses the problem of balancing demand and supply of professionals over time using a fictional scenario. Teaching Purpose: To explore factors affecting staffing considerations in professional services firms.

42



Developing Professionals - The BCG Way (A) &Developing Professionals - The BCG Way (B)

Provides a brief history of Boston Consulting Group (BCG) and the firm's approach to development and mentorship of its consultants and discusses the challenges facing three consultants who are nearing the two-year mark in working at BCG. Teaching Purpose: Provides a platform to discuss career development and mentorship in professional services firms in general and BCG's approach in particular.

PricewaterhouseCoopers: Education & Leadership Development

Bain & Company, Inc.: Making Partner

In June 1998, Bain's Compensation & Policy Committee meets to review candidates for elevation to partnership. The case presents the profiles of four candidates and ends with the promotion committee debating the merits of the candidates. Teaching Purpose: To explore the issues that have to be considered in deciding whether to promote a PS firm employee to partner.

The Roller Coaster Ride: The Resignation of a Star

Presents a detailed account of power dynamics that unfold in the firm when one of its best and brightest threatens to leave. Focuses on the dynamics of attracting, retaining, compensating, negotiating, and leveraging a star performer in a professional services firm. A manager and a star performer fight to improve their relative bargaining power. Specifically traces the detailed events from the resignation threat to the research director's struggle over deciding whether to counteroffer, to promote a junior, or to hire from outside the firm. Teaching Purpose: To discuss issues ranging from managing talent to resignation dynamics, power and influence, compensation, negotiation strategies, and managing a professional services firm.

Venture Law Group (A)

Description:Craig Johnson, Venture Law Group's (VLG) chairman, founded VLG in 1993 with a goal of "zero voluntary turnover." In late 1998, Johnson faces the departure of three important partners, prompting himself to ask what VLG can do in the midst of an "economic hurricane" which is luring VLG attorneys to leave and enter dot.com companies. Teaching Purpose: To focus on retention tactics and to highlight the inter-connectedness of a firm's business model, client selection process, and its employee retention results.

43


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Biographies

Biographies

HELLMUT SCHÜTTEDean, Asia Campus

Senior Affiliate Professor of International Management(Germany)

Hellmut Schütte studied economics and business administration in Germany and obtained

his doctorate from the University of St. Gallen, Switzerland. After traineeship in the U.K.,

he joined a Dutch/British multinational firm for which he worked for seven years in the

area of marketing in Germany and Indonesia. He then became Regional Manager for a

German, government-owned, investment bank stationed in the Philippines.

In 1981, he joined INSEAD's faculty in Fontainebleau, France, as Affiliate Professor of

International Management. He lectures and does research in the area of international

business and international marketing with a special focus on Asia. His present work is

concerned with markets and consumers in Asia, with the emergence of China, and with

the regionalisation of the strategies and organisational structures of multinational firms.

Since 1981, Professor Schütte has taught in seminars in about 35 countries all over the

world and spent several months a year in Asia. He is a well-known speaker in conferences

and business meetings and has been involved in various executive programmes and

consulting assignments for leading Asian and Western companies.

In 1989/90, he was visiting professor at the University of Tokyo and in 1992/93 he was a

visiting professor at Boston University and visiting scholar at Harvard University.

At the beginning of 2001, Prof. Schütte moved to INSEAD’s new campus in Singapore as

Associate Dean for Executive Education Asia. As of September 2002 he is the Dean of the

Asia Campus.

His publications include “Consumer Behaviour in Asia” (Macmillan) in 1998 and a case

book with P. Lasserre "Strategies and Management in Asia Pacific" in 1999 (McGraw Hill).

In 1995, Professor Schütte published “Strategies for Asia Pacific” (co-author Philippe

Lasserre) and German, French, and Japanese versions of this book have appeared

subsequently. A new version of the book, “Strategies for Asia Pacific – beyond the Crisis”

came out in 1999.

44



45



YOUSSEF BISSADAEntrepreneurship & International Management

(U.S.A / Egypt)

Youssef Fouad (Joe) Bissada is Emeritus Professor of Entrepreneurship and family

business at INSEAD where he has been teaching for 35 years. He is president of the

academic council of the Euro Arab Management School and owner - president of Bissada

Management Simulations, a company specialising in the development of computerised

teaching packages.

Professor Bissada holds an engineering degree from the University of Karlsruhe in

Germany, MBAs from both INSEAD and the Harvard Business School and a Doctorat d’Etat

es Sciences from the University of Aix-Marseille in France.

Professor Bissada's publications and consultancy interests are in the fields of Management

Education, International Project Management and Transfer of Technology.

Professor Bissada has specialized in the development of standard and made to order

simulations used in both educational institutes training programmes and in-company

training programmes.

For more information see : http://www.bissada.com

46

http://www.bissada.com/



HODA IRANI BISSADAInternational Management and Entrepreneurship

Dr. IRANI BISSADA is Managing Director of BMS (Bissada Management Simulations) a

company that has specialised in the development and teaching of computerised

management simulations and pedagogical packages. As of June 1988, she was head of

the Marketing Department of a French Business school. Dr. IRANI BISSADA is an INSEAD

visiting professor teaching in the executive programmes since 1987. She also teaches for

personal clients, mostly international companies.

Dr. IRANI BISSADA holds a Ph.D. and a Master in Business Administration, as well as a

master degree in Law and one in Political Sciences. Her current research and consulting

areas have been in the field of international management, entrepreneurship, finance,

education, and strategic planning.

47



HORACIO FALCÃO(Brazil)

Horacio Falcão is a partner with Cambridge Negotiation Strategies and a Lecturer of

Strategy and Management at INSEAD. He conducts negotiation and mediation training,

facilitation and consulting to both the private and the public sector. Horacio also provides

training and consulting services through ThoughtBridge, Vantage Partners,

CommonOutlook, and Sea-Change Partners. Before joining Cambridge Negotiation

Strategies, Horacio worked at CMI International Group (a spin-off from the Harvard

Negotiation Project) and previously at two prestigious law firms in Brazil. He founded and

was the first Vice President of the Harvard Latin America Law Society. He has worked for

the International Court of Arbitration in Paris and as a Harvard-trained mediator he has

mediated cases at the Small Claims courts of Massachusetts. A lawyer trained in both

civil and common law systems, Horacio graduated as an LL.M. from Harvard Law School

with a concentration on alternative dispute resolution in 1997.

Since then, Horacio has been travelling all over the US, Europe, Latin America, Africa and

Asia mediating complex disputes, facilitating dialog, developing negotiation and

consensus building strategies. He has lived in Brazil, US, France and Singapore. He has

worked with clients such as the President of Costa Rica, Discovery Networks, Visa, DuPont

(China & Hong Kong), Hewlett Packard (Taiwan), Ford, Mastercard (Asia), ATKearney,

Alianza Hispana, LLoyds TSB Group, UDV, Andersen Consulting, Arthur Andersen, BMC

Software, FreeMarkets (India), Petronas (Malaysia), INSEAD (Singapore), FAS-PwC,

Temasek Group, Search for Common Ground (Angola), Coats Viyella (Asia), DKSH

(Philippines & Asia), The Government of Paraguay, London School of Economics, AOL,

Infineon (SE Asia), STATS (Singapore), ST College (Singapore) and the Harvard Mediation

Program. Horacio has also taught negotiation at the Program of Instruction for Lawyers

(PIL) at Harvard Law School and mediation at the Fletcher School of Law and Diplomacy,

Tufts University.

Besides, Horacio has founded two companies and negotiated extensively on their behalf.

He combines this diverse and intense practice with a strong interest in keeping himself

constantly updated by writing and publishing several articles on the fields of international

arbitration, mediation, and negotiation. He received his MBA in 2002 and the Best

Professor Award in 2004 from INSEAD.

48



RANDEL CARLOCKThe Berghmans-Lhoist Chaired Professor in Entrepreneurial

LeadershipSenior Affiliate Professor of Entrepreneurship and Family

Enterprise(U.S.A.)

Dr. Randel Carlock is the Berghmans Lhoist Chaired Professor in Entrepreneurial

Leadership, Director of the Wendel International Centre for Family Enterprises and the

Family Enterprise Challenge Executive Program (France and Singapore). He also serves as

a Distinguished Service Professor and Opus Fellow in Family Enterprise at the University of

St. Thomas in Minneapolis, MN (USA).

He has an MA in education and training, MBA in strategic management (1983) and a Ph.D.

(1991) in organization development from the University of Minnesota. His doctoral

dissertation explored managing high growth entrepreneurial firms. He has also completed

a post graduate certification in family therapy at the Institute of Psychiatry, Kings College,

University of London (1998) and a certificate in psychodynamic counselling at Birkbeck

College, University of London (1999). He was awarded a Certificate in Family Business

Advising with Fellow Status (2001) by The Family Firm Institute, Boston, Mass. (USA).

He is co-author (with John L. Ward) of Strategic Planning for the Family Business (London:

Palgrave/Macmillan, 2001, available in English, Spanish and Chinese). Carlock spent 25

years in business serving as a CEO and Chairman of a NASDAQ listed corporation.

49



GABRIEL SZULANSKIAssociate Professor of Strategy

(Argentina)

Gabriel Szulanski is Associate Professor of Strategy at INSEAD, which is where he earned

his Ph.D. in Strategy in 1995. He joined the faculty of INSEAD in 2002 after serving on the

faculty of the Wharton School of the University of Pennsylvania (1995/02).

Gabriel's research interests focus on strategic management, with a specific focus on the

management of knowledge assets and the making of strategy.

His research was honoured with the best dissertation award (BPS division), best

conference paper from the Academy of Management TIMS division (honourable mention),

twice with the best conference paper from the Strategic Management Society (honourable

mention). His paper in the Harvard Business Review on replication of business practices

was included in the 2002 list of breakthrough ideas for management. His paper on

Stickiness was awarded the prestigious Best Paper award from the Strategic Management

Journal.

His research has been published in a variety of business newspapers including Financial

Times, academic journals including Strategic Management Journal, OBHDP, Organization

Science, Management Science, Journal of International Business Studies, and business

journals including Long Range Planning and Harvard Business Review.

Gabriel sits on the editorial board of leading academic journals including Administrative

Science Quarterly, Organization Science, Long Range Planning, and the Journal of

International Business Studies.

50



MASSIMO MASSAAssistant Professor of Finance

(Italy)

Massimo Massa is Assistant Professor of Finance at INSEAD, where he teaches

international finance, corporate finance, information financial economics, and behavioural

finance in MBA, PhD and Executive programs. He graduated summa cum laude from the

Department of Economics at the LUISS University of Rome, Italy. He obtained an MBA

from the Yale School of Management and a PhD in Financial Economics from Yale

University.

His research interests include portfolio theory, theory of information in financial markets,

behavioural finance, market microstructure, and mutual funds. His articles have been

published in academic journals such as Review of Financial Studies, Journal of Financial

Economics, Journal of Finance, Journal of Business, Journal of Financial, and Quantitative

Analysis, Journal of Financial Markets. His research has been quoted and discussed in

major magazines and newspapers (The Economist, Business Week, and New York Times).

He previously worked for the Bank of Italy in the Banking Division (1989-1992) and in the

Research Department (Monetary and Financial Markets Division) (1993-1997).

51



JAVIER GIMENOAssociate Professor of Strategy

(Spain)

Javier Gimeno is Associate Professor of Strategy at INSEAD. He holds a Ph.D. in strategic

management from Purdue University (USA) and a Licentiate degree in business and

economics from the University of Zaragoza (Spain). He teaches strategy, and industry

and competitive analysis to MBAs, executives, and doctoral students.

Javier’s research interests centre on competitive strategy and entrepreneurship. He has

published in leading journals in strategy and entrepreneurship, such as the Academy of

Management Journal, the Administrative Science Quarterly, the Journal of Business

Venturing, the Journal of Marketing, Organization Science, and the Strategic Management

Journal. His research has received international awards, such as the 1995 Free Press

Outstanding Dissertation Award from the Academy of Management (Business Policy and

Strategy division), two Best Paper Awards from the Academy of Management

(Entrepreneurship division), and the 2001 Strategic Management Society/McKinsey Best

Conference Paper Award (honourable mention).

In addition to his teaching and research, Javier provides service and leadership to several

academic journals and professional associations. He serves as Senior Editor for

Organization Science, and sits on the editorial boards of some leading journals in strategy

and management, including the Academy of Management Journal, the Strategic

Management Journal, Strategic Organization, Management Research, and Cuadernos de

Economía y Dirección de Empresas.

Javier is currently the past President of the Academy of Management’s Business Policy

and Strategy (BPS) division - the largest professional association of strategic management

academics and practitioners, with over 4,000 members worldwide. Previously, he served

in the BPS division's Executive Committee and as Program Chair for the 2002 annual

conference. He is the Program Chair of the Competitive Strategy Interest Group of the

Strategic Management Society (SMS), and the Associate Program Chair for the 2005 SMS

International Conference. He is also a founding member and Academic Advisory Board

member of the Iberoamerican Academy of Management.

52



JAKE COHENAffiliate Professor of Accounting & Control and Business Law

Director of INSEAD-PricewaterhouseCoopers Research Initiative(U.S.A.)

Professor Jake Cohen is an Affiliate Professor of Accounting & Control at INSEAD. As such,

Professor Cohen teaches financial accounting, financial statement analysis, and business

law courses in Singapore and Fontainebleau, France. Prior to teaching at INSEAD, Jake

was a Senior Teaching Fellow in the Accounting & Control group at the Harvard Business

School and Professor at the Harvard Extension School in Cambridge, Massachusetts. At

Harvard University Professor Cohen taught courses in “Business Analysis and Valuation,”

as well as, “Creating Value through Corporate Restructuring and Mergers & Acquisitions”

and was recognized for outstanding teaching. Prior to teaching at Harvard for over four

years, Professor Cohen taught at Syracuse University as an accounting professor, where

he was named “Professor of the Year” and was selected as the graduation keynote

speaker at the school’s commencement ceremony. Professor Cohen currently sits on the

Syracuse University Accounting Department’s Advisory Board.

Professor Cohen received a Bachelors of Science degree in Accounting from Lehigh

University, where he graduated cum laude, a Masters of Science degree in Accounting

from Syracuse University, where he also graduated with honours, a Master of Liberal Arts

degree in Government from Harvard University, and a Juris Doctor degree in Law from

Syracuse University, while on full academic scholarship. Professor Cohen also completed

six executive certificates at the Harvard Business School in Corporate Restructuring,

Private Equity, Venture Capital, Financial Innovations, Valuation, and International

Managerial Finance.

Prior to his academic career, Professor Cohen worked as a tax accountant at KPMG LLP in

Philadelphia and as a mergers & acquisition tax consultant for PricewaterhouseCoopers

LLP in New York City. He currently consults and trains investment bankers at such firms

at the Blackstone Group, CSFB, FleetBoston, Houlihan Lokey Howard & Zukin, and

J.P.Morgan. Professor Cohen has also tutored CEOs and Members of Board of Directors of

Fortune 500 companies, such as Aetna Inc.

Professor Cohen is also the Founder and Chairman of BankersGroup, an educational

organization with the mission of ‘Bridging the Street’ between corporate and securities

53



lawyers, investment bankers, capital market regulators, and professors whose research

relates to the capital markets.

54



MICHAEL WITTAssistant Professor of Asian Business

(Germany)

Michael A. Witt is Assistant Professor of Asian Business and Comparative Management at

INSEAD. He is primarily based in Singapore.

Professor Witt's area is comparative business systems, especially in the East-Asian and

Western European context. Underpinning this area of research is the notion that

differences in society, culture, and politics have given birth to several varieties of

capitalism with distinct sets of formal and informal rules for business.

The central question Professor Witt has been exploring is how these rules impact firms

and how they change over time. His goal is to expand our understanding of why firms in

different countries act the way they do, which is a prerequisite for successful global

competition and cooperation as well as local market entry.

Current research on this topic includes a large project, undertaken with Professor Gordon

Redding, on executive rationale, executive decision-making, and industrial structure. The

study spans six countries: China, Denmark, Germany, Japan, Korea, and the United States.

At INSEAD, Professor Witt teaches three MBA electives—"Strategies for Asia-Pacific",

"Political Risk Assessment and Management," and "Comparing the World's Business

Systems" (with Gordon Redding and Jonathan Story)—as well as a number of executive

courses. He has been nominated for the Outstanding Teaching Award.

Professor Witt holds a Ph.D. and M.A. from Harvard University and an A.B. from Stanford

University. He also speaks Japanese and Mandarin and has lived in both China and Japan.

55



ALLAN FILIPOWICZAssistant Professor of Organizational Behaviour

(U.S.A.)

Allan Filipowicz is Assistant Professor of Organizational Behaviour at INSEAD.

His research focuses on the role of emotion and cognition in interpersonal and group

processes, and its subsequent impact on effectiveness. His earlier work had approached

this topic by studying the psychological determinants of network formation. Currently, he

is examining the influence of humour on performance in task-based interactions, with a

focus on both leadership and negotiations.

At INSEAD Professor Filipowicz teaches Leading People and Groups and the Social

Psychology of Management in the MBA program, Organizational Behaviour in the Ph.D.

program, and the Psychology of Leadership in the Executive MBA program.

Professor Filipowicz received his Ph.D. from Harvard University. He holds an MBA from

The Wharton School, an MA in International Affairs from the University of Pennsylvania,

and degrees in Electrical Engineering (M.Eng., BS) and Economics (BA) from Cornell

University. His professional experience includes two years in banking (Bankers Trust, New

York) and five years in consulting, including running his own boutique consulting firm and

four years with The Boston Consulting Group in Paris.

56



J. FRANK BROWNExecutives in Residence

(U.S.A.)

J. Frank Brown is the Global Leader, Advisory Services, of PricewaterhouseCoopers; he

has been with the firm for more than 20 years. Prior to his current role, Frank served as

the Global Leader, Assurance, and Business Advisory Services.

From 1991-1995, Frank was the Managing Partner, Transaction Services, and in 1995 was

named New York Managing Partner. He also has served on the U.S. Policy Board/Board of

Partners from 1997-2000. Frank is a member of the American Institute of Certified Public

Accountants and the New York, New Jersey and Connecticut State Societies of Certified

Public Accountants.

Frank is also Chairman of the INSEAD U.S. Advisory Council and a member of INSEAD

Board of Directors.

57



RICHARD L BAIRDExecutives in Residence

(U.S.A.)

Richard L. Baird is the Global Human Capital Co-Leader of PricewaterhouseCoopers and

a member of the Global Leadership Team. He is responsible for providing oversight to the

cross-line of service global functions of Human Resources (including global resource

deployment) and Learning and Education. Richard is also the Global Operations Leader

for the firm's Global Assurance Practice.

Richard's prior positions within PwC include that of Operations Leader, Americas, for Audit

and Business Advisory Services. Earlier in his career, he spent 17 years as Human

Resources Partner, National Business Assurance.

PricewaterhouseCoopers LLP is a truly global organization with member firm offices in

769 cities in 144 countries. With a combined headcount of more than 122,000, PwC firms

rank amongst the world's leading employers of highly skilled, professional people.

Aggregated revenues in fiscal year 2004 were USD17.6 billion. PwC clients range from

the world's largest and most complex organizations to some of its most innovative

entrepreneurs. In fiscal year 2004, our member firms performed services for 83 percent

of the companies in the Fortune Global 500.

58


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Field Trips – Thailand

Field Trips

SIAM CEMENT (Bangkok, Thailand)

17th July TG 402 0820 / 0940 hrs

06.00 Depart from campus to Singapore Changi Airport

08.20 – 09.40 Flight and arrival in Bangkok International Airport. Transfer to hotel and afternoon free.

Overnight in Indra Regent Bangkok

18th July TG 401 1920 / 2240 hrs

08.00 – 08.30 Check-out of the hotel

08.30 – 10.00 Depart from the hotel and transfer to Siam Cement Group.

10.00 – 10.15 Welcome drink

10.15 – 10.25 Welcome speech by Mr. Manoon Sunkunakorn,HR Division Director

10.25 – 10.35 Video Presentation

10.35 – 11.35 Siam Cement Presentation by Mr. Roongroj Rangsiyopash

11.35 – 11.45 Q&A

12.00 – 13.15 Lunch

13.15 – 14.30 Depart to Thai Ceramic Co, Ltd (Hin Kon)

14.30 – 16.00 Plant tour

16.00 Transfer to the airport for flights back to Singapore.

59

http://www.cementhai.co.th/eng/index.asp


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Field Trips – Malaysia

MALAYSIA PALM OIL BOARD (Kuala Lumpur, Malaysia)

17th July Depart from INSEAD

08.00 – 13.00 Depart from INSEAD and drive directly to Kuala Lumpur (of course with frequent stops for breaks)

13.30 Arrive in Kuala Lumpur and check-into Concorde Hotel. Afternoon free at leisure.

Overnight at Concorde Hotel.

18th July Depart from Kuala Lumpur

08.00 – 08.30 Check-out of the hotel

08.30 – 09.30 Transfer for Bangi to visit Malaysia Palm Oil Board.

10.00 – 13.00 Meeting with MPOB.

13.00 – 14.00 Lunch

14.00 – 14.45 Transfer to Intercontinental Specialty Fats (ISF).

18.00 – 23.00 Leave Malaysia for Singapore by coach.

60

http://www.mpob.gov.my/


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Field Trips – Singapore

COCA COLA SINGAPORE &

ASIA PACIFIC BREWERIES (Singapore)

18th July

Coca Cola

09.00 – 14.30 Visit to Coca Cola

14.30 Transfer from Coca Cola to Asia Pacific Breweries

Asia Pacific Breweries

15.00 Welcome remark by Alan Gourdie

15.05 – 15.15 View Asia Pacific Breweries Singapore Video

15.15 – 15.45 Presentation by Alan Gourdie and Q&A session

15.45 – 16.15 Brewery tour

16.15 Drinks at the Tavern

61

http://www.apb.com.sg/link/link.html

http://www.coca-cola.com.sg/home/


Programme Director: Dominique Héau / Coordinators: Sven Biel & Jo Anne Lee (Ext. 5401)Partner’s Programme

Other Programme

PARTNER’S PROGRAMME21st July 2005

09.30 – 11.30 “Blue Ocean Strategy” by Dominique Héau – Professor of Business Policy, Associate Dean of the EMBA Programme

11.45 - 13.45 Free lunch at the INSEAD restaurant (self service operating cafeteria)

Please meet at the main campus lobby for coach pick up for the ‘Fengshui Tour’.

14.30 – 17.30 Guided visit around Singapore for the ‘Fengshui Tour’.

The ancient art of Fengshui originated from China more than 4,000 years ago. It is also known as Chinese Geomancy, concerned with studying the living environment of a person and understanding the relationship between Man and the natural environment around him. The tour is dedicated to this ancient practice and the guide will take you around the commercial and financial districts like Orchard Rd, Raffles Place, Middle Rd, Suntec City to see shopping centres, office buildings, and even public sculptures that display FengShui elements. You will pay a visit to the office and gallery of a famous FengShui master. You will learn about the different aspects of FengShui and how believers use the five elements - metal, water, wood, fire, and earth, to create productive energy for their homes and offices. What effects does that mirror facing your bed have on your health? What can your ‘Pillars of Destiny’ tell about you? We need all the good luck we can get in the year of the Rooster!

Coach return to Trader’s hotel.

18.30 Please meet the coach at the lobby of trader’s hotel for dinner at the China Club. This would be a ‘National costume” night.

62

EXECUTIVE MBA PROGRAMME, Weeks 9

Documents

Transcript of EXECUTIVE MBA PROGRAMME, Weeks 9