Competition from Emerging Markets:

The new Emerging Multinationals NBA 6440

Faculty: Lourdes Casanova

lourdes.casanova@cornell.edu
Sage 370 Office Hours by appointment on Monday mornings
Teacher assistant:

First Half Fall 2015 August 25th October 11th 1.5 Credits
Mondays, 1:25pm 4:10 pm B11
and Tuesday September 6th and Wednesday September 14, 4 25-7
10pm B06
(7 weeks x 2h 30= 17 horas 30)

Course Objectives
Over the last decade, emerging multinationals from Asia and Latin America
have expanded aggressively on a global scale. Coming from regions, which
were very volatile before and from countries with lower Gross Domestic
Product/capita than developed countries, how have some of these companies
have been able to succeed internationally? How are they changing the
competitive environment for multinationals from the developed world? What
can we expect from them over the next years? This course where we will
identify patterns, and helping you navigate in an unknown environment and
will provide frameworks for:
- Helping you navigate the economic and financial challenges of
emerging markets
o With a closer look of currency turmoil
- Business Strategies for emerging markets.
- Internationalization drivers and preferred modes of entry.
- Reverse innovation and Blue Ocean Strategy,
- Different sources of news/data from emerging markets.
The course will use a combination of case studies, class discussions and
small exercises as learning method.
Please check regularly the Blackboard site where handouts will be
posted.

The Instructor
Lourdes Casanova, Senior Lecturer and Academic Director of the Emerging
Markets Institute, Johnson School of Business, Atkinson Center for a
Sustainable Future Faculty Fellow, Cornell University; specializes in
international business with a focus on emerging markets multinationals.
Recognized as one of 2014, 50 most influential Iberoamerican intellectuals
by Esglobal. Fulbright Scholar, Masters University of Southern California and
PhD University of Barcelona. Visiting professor at Haas School of Business,
University of California at Berkeley; Judge Business School, Cambridge
University; Latin American Centre at Oxford University and consultant at
 Inter-American Development Bank. Directed, taught programs for
multinationals including Telefnica, BBVA. Cemex and Brazilian Confederation
of Industries. Co-author: The Political Economy of an Emerging Global Power:
In Search of the Brazil Dream, Palgrave Macmillan 2014, author Global
Latinas: Latin Americas emerging multinationals Palgrave Macmillan 2009,
coauthor Innovalatino, Fostering Innovation in Latin America, Ariel 2011 and
journal articles Beijing Business Review, European Business Review,
International Journal of Human Resource Management, Business and Politics
and Foreign Affairs Latinoamrica. Member of World Economic Forums Latin
America Global Agenda Council and Competitiveness Lab; Advisory
Committee European Union/Brazil; B20 ICT and Innovation Task Force Los
Cabos; INSEADs Goldman Sachs 10,000 women. Board member of Boyce
Tompson Institute, start-up Documenta, Advisory Council Tompkins Public
Library.

Audience

This course is aimed at MBA students who wish to learn more about
emerging multinationals, develop and enlarge their knowledge of the
characteristics of doing business in emerging markets. The overall goal is to
understand all this within the framework of the general shift of power to a
multipolar world. Students will learn from course about analysis tools that
will help them in the future. This will in turn, lead them to be more effective
international managers who can successfully exploit the opportunities
offered by emerging markets while facing up to its specific challenges.

OPTIONAL TEXTBOOKS

Casanova, L. & Kassum, J. 2014. The Political Economy of an Emerging

Global Power: In Search of the Brazil Dream. Palgrave Macmillan.
brazildream.com
Casanova, L. 2009. Global Latinas. Emerging Multinationals from Latin
America. Palgrave Macmillan. www.globallatinas.org
Van Agtmael, A. (2007). The Emerging Markets Century: How a New Breed
of World-Class Companies is overtaking the World, (New York, USA: Free
Press, 2007).

SOME TED TALKS/VIDEOS on EMERGING MARKETS

China as an economic model for emerging markets? Dambisa
Moyo. Is China de New idol for emerging economies? June 2013.
https://www.ted.com/talks/dambisa_moyo_is_china_the_new_idol_for_emergin
g_economies
Frugal Innovation: Navi Radjou: Creative problem-solving in the face
of extreme limits. October 2014.
https://www.ted.com/talks/navi_radjou_creative_problem_solving_in_the_face_
of_extreme_limits
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 UBS on Emerging markets. 20 April 2015.
https://www.youtube.com/watch?v=TdCI6KANjko
Financial Times: Emerging Markets outflows near $1tr. August 19,
2015. https://www.youtube.com/watch?v=YBZ_CyeX0nk
China, the Fed and Emerging Markets unrest: Boom Bust August 18,
2015. https://www.youtube.com/watch?v=GqexnygnEco
Financial Times: Emerging Markets turmoil threatens Africa. 21 August
2015. https://www.youtube.com/watch?v=gBjs0FM7QvI
Emerging Market Currencies Suffer As Yuan Gets Devalued. ET Now. 21
August 2015. https://www.youtube.com/watch?v=EVJukKoQ3u8

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 SUMMARY OF COURSE CONTENT

Session 1 and 2: Monday August 29, 1:25pm-4:10pm

The Emerging Markets Century: Is this for real?

Required Readings:
Chapters of Van Agtmael, A. (2007). The Emerging Markets Century:
How a New Breed of World-Class Companies is overtaking the
World, (New York, USA: Free Press, 2007).
o Chapter 1: Who is next?
o Chapter 2. Against the odds

Optional Reading:
Financial Times: Taking a stand. Thursday, July 17, 2014.
Financial Times: Redefining EM. James Kynge. August 18, 2015.
http://www.ft.com/intl/cms/s/2/a579fe0c-44f0-11e5-af2f-4d6e0e5eda22.html?
ftcamp=crm/email/2015820/nbe/BusinessEducation/product#axzz3jOUhbvUZ
Financial Times: Emerging Markets: Redrawing the world map. James
Kynge, Jonathan Wheatle. August 3, 2015.
http://www.ft.com/intl/cms/s/2/4a915716-39dc-11e5-8613-
07d16aad2152.html?
ftcamp=engage/email/content/premium/editorschoice/crm&utm_source=pre
mium&utm_medium=email&utm_term=content&utm_campaign=editorschoi
ce&#axzz3iTTIzoSm

Questions/Issues for discussion

1) Why have Emerging Multinationals emerged and expanded beyond

their own regional markets?
2) What strategies did the Emerging Multinationals adopt to expand their
operations? Internationalization process.
3) What are Emerging Multinationals unique characteristics (especially
regarding their business model, strategy and operations) that
differentiate them from multinationals corporations from developed
economies?

Session 3 and 4: Tuesday, September 6th at 4:25-7:10pm B06

Emerging Multinationals going global: The challenges of
Internationalization

Required Readings:
Case: Casanova, L. & Hoeber, H. (2008). Cemex (A): Building a
Global Latina. 2008. INSEAD
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 Case: Casanova, L. & Hoeber, H. 2008. Cemex (D): Quo Vadis?
INSEAD.
Case: Casanova, L. & Hoeber, H. (2008). Cemex (E): Down After
Down Under. 2008. INSEAD.

Optional Reading:
A tale of two Mexicos: Growth and Prosperity in a two-speed
economy. McKinsey Global Institute. 2014.

Questions/Issues for case discussion

1) What are the different phases of CEMEXs internationalization?

2) What makes Cemex unique?
3) Where should CEMEX grow now? Developed/emerging economies
a. Internationalization drivers
4) Your company is acquired by a Mexican MNC: your first thoughts
5) What are the causes of Cemexs failure?

Session 5 and 6: Monday September 12, 1:15pm-4:10pm

Emerging Markets Innovations: Frugal, with limited resources

Required Readings.
Lenovo: The rise of the frugal innovator. The Economist. May 24th
2014.
How Lenovo makes fat profits on Slim Pickings. Drake Bennett.
Business Week. May 12-18, 2014.
The hardest Working Man in Mobile. Business Week. June 9th
2014.
Africa on nothing but a phone. Business Week. June 5th 2014.
The Economist. A hopeful continent. 11 March 2013
o Financial Times: New Generation of African entrepreneurs lead the
way. Andrew England. July 17, 2015. http://www.ft.com/intl/cms/s/0/84480d46-
264b-11e5-bd83-71cb60e8f08c.html#axzz3hk8RYDhG
o Financial Times: Here comes Africa. July 24, 2015.
http://www.ft.com/intl/cms/s/0/4da09198-30b2-11e5-8873-775ba7c2ea3d.html

Questions/Issues for discussion

1) Identify different innovations coming from emerging markets: products,

processes
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 2) How innovation coming from emerging markets is different than
innovation coming from the west.
3) Technological innovations in Emerging Markets
4) Blue Ocean Strategy as a framework for emerging multinationals

Note: Please submit one page description of your final paper before the
class to the TA Chen Chen cc2444@cornell.edu.

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 Session 7 and 8: Wednesday, September 14 at 4:25-7:10pm B06
The Emergence of a middle power: Soft and Hard Power
Challenges of currency swings

Required Readings
Casanova, L., Campos Filho, A. &. Verol, M. 2011. Marcopolo, the
making of a Global Latina. INSEAD.
Casanova, L. & Kertesz, S. 2011. Brazil. A concise profile 2011. INSEAD.

Optional Readings
Doing Business in Brazil IFC (see link on website)

Questions/Issues for discussion

1) Marcopolo: Internationalization barriers for Brazilian companies

a. Is Marcopolo prepared to face the challenges/political risks of
going global?
b. Should the company start training Brazilian executives and/or
hire international ones to run its overseas operations?
2) Should Marcopolo concentrate its internationalization strategy in Latin
America?
3) Reasons for Marcopolos success, learnings, cultural issues (natural
markets vs. Rest)
a. Is Marcopolo up to this challenge or should it change course in its
internationalization efforts as it did in 2006?
b. Should Marcopolo keep its business model
4) How to survive currency swings.

Session 9 and 10: Monday, September 19 at 1:25-4:10pm

South-South cooperation versus competition: Latin America and
Asia
Opportunities for growth

Readings
The bridge model: how Spanish multinationals are building
economic ties between Asia and Latin America. L. Casanova and E.
Rodriguez Montemayor. 2014. Business and Politics. Issue 3 (October
2014). Pages 373-479.

Questions/Issues for discussion

1) How do Asia and Latin America complement and compete with each
other?
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 a. Africa, Latin America and Asia collaborate: BRICS, G20, New
Development Bank.
2) Suggestions for a win-win relation.
3) Companies as bridges/facilitators between regions.

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 Session 11 and 12: Monday, September 26 at 1:25-4:10pm
Developing Global Excellence: the case of Outsourcing in India
Final Papers

Dutta, S. 2004. Infosys: Leveraging the Global Delivery

Model. INSEAD Cases
The Economist. Special Report. Here, there and everywhere.
January 19th, 2013

Questions/Issues for discussion

1) Developing global capabilities: the growth of IT outsourcing in India

2) How Indian companies created a new industry
3) Success factors of Infosys
4) Challenges for the future
Please prepare a 15 presentation (10 slides max.) of your final paper

Session 13 & 14: Monday, October 3rd at 1:25-4:10pm

Looking forward to the future
Presentations of Final Papers
Course Evaluation

Readings
Unilever: Taking on the World, one Stall at a Time. Business
Week. January 7-13, 2013.
The New Mission for Multinationals. J. Santos and P. Williamson.
MIT Sloan. May 18, 2015.
How emerging Markets can Finally Arrive. J. Jullens.
Strategy+Business. May 11, 2015.

Optional Reading
Fear of contagion. Financial Times. January 31st 2014.
Please prepare a 15 presentation (10 slides max.) of your final paper.

Extra handouts will be kept on the shelves next to my office (370 Sage Hall)
All power points will be published in blackboard.

Course Structure and Evaluation

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 Combination of lectures, team discussions and active student participation in
class discussions. The grade for the course will be determined by:

50%: 25% class presentation + 10% class participation + 15%

attendance. Regular attendance in class sessions is required (you can miss
at most one class). As you may be called upon at random to answer
questions, you should inform the instructor of your particular situation prior
to the start of the class. Contribution to the blackboard discussion will also
count as class participation. The class presentation (25%) will be a
group presentation in one of the classes of a case study or current
news related to emerging markets. You need to submit your power point
for the class presentation 24 hours before your presentation (later
submissions will be penalized). The case study discussion power point should
cover and should be address to a group of senior executives of the company
in a strategic session:
Presentation + discussion should last 30 (around 8 slides). Case
Outline:
Summary of the company: focus on analysis, not only description
Context of the company: country and its current economic situation, industry
Dilemmas/problems the company faces as described in the case and its
causes
Reasons for their success/failure
Feasible recommendations for the future, give y our opinion. Some solutions
are better than others because of expected outcomes, costs and implications
for people, organizations.

Current news: Choose a topic and a couple of questions to be

discussed in class
Currency war: devaluations of different currencies and implications for
the country and the world
Are emerging markets pass and why

50%: Final deliverable is a 25-30 slides power point presentation

(submit one-paragraph description in Session 5) analyzing an
emerging multinational (suggestions are listed below) in teams of four. You
will be a short presentation on the last day of classes. Soft copy to be
delivered on Friday October 9 by noon to the TA Chen Chen
cc2444@cornell.edu:
China: Tencent, Xiaomi, Huawei
India: Hindalco, Tata Consultancy Services
Brazil: Havaianas, Odebrecht
Mexico: Amrica Mvil
South Korea: Amore Pacific

Suggested Structure of the Power Point

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 1 Country overview: GDP, GDP/Capita, current economic situation,
currency fluctuations, government support to local multinationals.
2 Company today: Sales, profits, employees, market value
a Ownership: Public (quoted), family owned, state owned (SOE)
b Brief Company History
c Strategic plan, Vision and Values
3 Internationalization Process: presence in countries, International
sales/profits/employees (as % of total), investments
a International Business structure: Subsidiaries (production
facilities, commercial) JV, wholly-owned, alliances, Non-equity
forms (franchise, etc.)
b Timeline (when)/Areas for expansion (where)/ Milestones
c Preferred modes of entry: M&A, Greenfield, franchise. Major
milestones.
d Drivers for initial international expansion/competitive pressures:
Market seeking, Efficiency seeking, Natural Resources seeking,
Knowledge seeking
4 Competitive analysis and industry (use framework: BOS, Five forces,
SWOT analysis)
5 Lessons/challenges from the internationalization process/Reasons for
success
a How the industry sector has affected the company development
b Interaction between the economic context and the company
development.
c Companys Resources/Competitive advantage
d Lessons to be learnt for local private sector and other emerging
multinationals
e Policy implications and challenges for the future in the new
economic context post commodity super cycle and new
normal growth in China

Evaluation Criteria: Content coherence (context of country and industry), Quality of the
analysis (use of frameworks, firm strategy, competitive advantage), Quality of Power Point,
Presentation Style, Leading Discussion and Overall effectiveness (lessons and
recommendations). Please add sources and references.
Sources: Capital IQ, company websites, SEC filings, Investext, local
newspapers, World Bank/IMF, Central Banks.

The following items are due to Faculty on SharePoint by date. Final

presentation on.ppt version. Please submit a paper copy as well to the
faculty.
Students agree that by taking this course all required
papers, presentations may be subject to submission for
textual similarity review to Turnitin.com for the detection of
plagiarism. All submitted papers will be included as source
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 documents in the Turnitin.com reference database solely for
the purpose of detecting plagiarism of such papers. Use of
Turnitin.com service is subject to the Usage Policy posted on
the Turnitin.com site.
Note: Johnson faculty has adopted a suggested grade average of 3.5
for elective courses. This course will follow that guideline.
Johnson students in this course are expected to abide by the Cornell
University Code of Academic Integrity. Any work submitted by a
student in this course for academic credit will be the students own
work.
Participating in research studies is a valuable way to receive first-hand experience with
research methods and to support JGSM faculty and doctoral students in developing state-
of-the-art management thought, which ultimately is brought back into the classroom. A
significant amount of material covered in this class is based on empirical research.
In general, to earn extra credit you need to participate in an academic research project,
which usually takes no longer than one hour. You can sign up for studies by registering as
a new participant at http://johnson.sona-systems.com/. Once registered, this website
provides all information regarding on-going studies in which you can earn extra credit.
You can accumulate a maximum of three extra points (which will be added to your final
grade each hour counts as 1%). To receive any extra points, you must participate in
your first study before fall break. This requirement is in place so that the demand for
studies does not fall solely in the second half of the semester. Please note that if you
sign up for a study and do not show up for your appointment, your grade will be
penalized accordingly.

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