Global Product Launch Simulation

1. Global Product Launch Simulation

2. Kick-Off Agenda • Overview of simulation • Key issues • Potential negotiation relationships • Assignment / discussion of roles • Negotiation process • Graded assignments • Intro to international joint ventures • Simulation Schedule

3. Simulation Schedule

4. MNCs MegaMouth EuroSound TanakaTooth Local Firms TropiDent Chewicalia ParaSonic ElectroEnamel TEAM ASSIGNMENTS • Tropicalia • Paradiso Governments

5. Modifications Tooth whitening Candy-tipped head BlueTooth enabled Other uses: Voicemail Prayers, chants Sports scores Honey-Do lists Inspirational sayings Mandibular Sonic Transducer

6. MNCs: MegaMouth, TanakaTooth, EuroSound • Role of country, local firms, region, etc. in global supply chain? • Invest in emerging markets? • New product/international strategy • Standardization vs. adaptation of Mandibular Sonic Transducer • Entry mode: Risk, resource, control trade-offs • Type of plant, finished product vs. components • Bargaining power vs. local firms and/or Govt.

7. LOCAL FIRMS:ParaSonic, Chewicalia, TropiDent, ElectroEnamel • Enter/become player in global supply chain? • “Entry mode” – Alone, JV, SOE? • How to facilitate MNCs’ entry into country • How to facilitate MNC’s implementation of international strategy into country • Access to technology • Government support • Bargaining power vs. MNCs, Govt.

8. GOVERNMENTs: Paradiso & Tropicalia • Policies for technical standards, product use, industry structure, access to local market, global connectedness, technology, etc. • Trade • Economic integration • Favorable aspects of FDI • Labor • High technology • Taxes • Imports vs. exports • Unfavorable aspects of FDI • Dependence • Low technology

9. Intl. Strategy and Entry Mode TanakaTooth Europe North America Country of Paradiso Tropicalia ParaSonic Chewicalia TropiDent ElectroEnamel

10. Entry Mode Decision Matrix Hi Strategic Importance of Country Lo Hi Resources, Control, Risk Lo Lo Hi Stand-alone Attractiveness of Country

11. Entry Mode Decision Framework ControlResourcesRiskDissem. Low Low Low High Licensing Exporting Intermediaries Direct Joint Venture Wholly-owned Subsidiary High High High Low

12. Potential Negotiation Relationships Step into role…self interest MNC1 MNC2 Local Firma Local Firmb GovernmentY GovernmentX

13. Auction of Teams

14. Information Channels • Public • Meetings • Classroom, MBA team rooms, MBA Center, Pazzo’s, Starbuck’s…anywhere, anytime. • Facebook Group (need Facebook account for your team) Simulation Morning Group via Facebook MBA 611 Global Joint Venture Simulation MORNING Simulation Afternoon Group via Facebook MBA 611 Global Joint Venture Simulation AFTERNOON Don’t use oneyearmba listserv

15. Information Channels • Public: Team Contacts and Location • Designate PR Manager • Cell Phone • E-mail • Facebook team account; personal accounts optional) • Team HQ Location (in Gatton Bldg.) • Must be “staffed” • Private • Direct contact between teams, specific individuals • Phone calls • Meetings (secret location?) Wally…for “consultation” 361-2128 (m) walter.ferrier@gmail.com

16. Assignments • Pre-Simulation Memo • 3-4 pages • Due at 2:00 [or 4:00] p.m. TODAY • Submit via e-mail – walter.ferrier@gmail.com • Post-Simulation Briefings • 1:00 p.m. [or 3:00 p.m.] TOMORROW • Post-Simulation Reports • 7-8 pages • Due Friday, FEB 19 • Submit via e-mail – walter.ferrier@gmail.com

17. Pre-Simulation Memo Intended End-Game Position • Sketch out intentions for…strategy/policy • Entry mode • International strategy • Policy/economic objectives and policy specifics • Role of JV [or other entry mode] in achieving desired strategy • Sketch out intentions for…negotiation game plan • Key parties • Issue priorities • Process strategies/tactics • Alternatives, fall-backs, last resort, etc. See sample reports (links on syllabus)

18. Post-Simulation Briefing & Report • Entry Mode & Strategy section • Transaction [or Non-transaction] section • Negotiation Process & Outcome section • Conclusions • Learning outcomes See sample reports (links on syllabus)

19. Post-Simulation Briefing and Report • Details of “current” and future situations and actions regarding: • Entry mode • International strategy and operations • Organizational structure • (Government: Future policies package) • Make explicit use of these frameworks

20. Agreements/Contracts • Each multi-party “agreement” • Type and purpose of project • Partners, ownership, structure, control, etc. • Agreements on other key issues • Non-Agreement Explanation • Why no agreement? • Process and substantive barriers to agreement • Future process and/or substantive alternatives

21. Negotiation Process • Which parties? • How frequently? • Multilateral vs. Bilateral • Log-timeline • Press releases • Negotiation Issues/Points • What were they? • Link to entry mode and/or international strategy • Negotiation strengths vs. weaknesses • Negotiation issues won vs. lost

22. Conclusions – What to do differently? • Governments • Influence of policy package on entry mode and strategy? • MNCs • ‘Intended’ versus ‘realized’ entry mode/strategy? • Local Firms • ‘Intended’ versus ‘realized’ role in facilitating MNCs local entry mode and their overall international strategy?

23. Simulation Schedule