Strategy, Structure and Management of the Multinational Enterprise

Course Code :2107TEWEIO
Study domain:International management and e
Academic year:2019-2020
Semester:2nd semester
Contact hours:60
Credits:6
Study load (hours):168
Contract restrictions: No contract restriction
Language of instruction:English
Exam period:exam in the 2nd semester
Lecturer(s)Sascha Albers

3. Course contents *

A multinational enterprise is a firm that owns or controls productive assets in at least three countries; one is its home country, the others are its host countries. Often, MNEs operate in many host countries with a network of subsidiaries, are entrenched in a multitude of product markets and hence, value chains that connect them with a diverse set of suppliers and alliance partners; face a variety of local competitors as well as some familiar MNE rivals, have to deal with multiple governments, regulations and a diverse set of societal expectations. Phenomenologically, MNEs themselves have developed a diverse set of  operational models and structures, and new forms of MNEs have emerged (emerging market MNE, born globals) to co-exist with the traditional, western style industrial MNEs. Conceptually, our understanding of MNEs has developed, too; orthodoxies of MNEs as either a neo-imperialist agent of economic progress and wealth, or an evolving dark power threatening democracy and freedom, have been diversified and complemented with more differentiated conceptions. This course focuses on core characteristics of MNEs and resulting management challenges in the multifaceted spectrum that these firms face. The course seeks to provide understanding on the evolving nature of MNEs by looking at theories and models that explain their nature, organization and behavior. It builds on foundational knowledge on international business, strategy and organization theory to explore core issues in the domain of MNEs, such as issues of headquarter-subsidiary relations, managing international research and development, coordinating global value chains, international strategic alliances and networks, global competitive dynamics and social responsibility and sustainability. Small case studies and guest speakers will help to illustrate the material at hand. Throughout the course, initiative, creativity, and critical thinking on part of the students will be appreciated and encouraged.

Course Structure:

Introduction: Managing the MNC

Part I: MNE Nature

  1. Essence, Role, and Types of MNC
  2. MNC Models: Headquarter-Subsidiary Relations
  3. Traditional Internationalization Theories

Part II: MNE Activities

  1. The Global Factory
  2. Market Entry, Growth, Exit
  3. Innovation and International Technology Development
  4. Managing the Global Value Chain

Part III: MNE Relations

  1. MNE-Government Relations
  2. MNE Competitive Dynamics
  3. International Strategic Alliances