GSU Study Abroad Trip for PMBA Students
Management & Finace in South Africa

GEORGIA STATE UNIVERSITY
J Mack Robinson College of Business
Study Abroad Maymester 2009
International Business & Finance
in an Emerging Economy: South Africa

Students have the option of receiving either all 6 credit hours in International Business or 3 credit hours in Finance and 3 credit hours in International Business.

Each national business system is viewed as the result of the combined interaction of cultural, educational, economic, institutional and political constraints, and, in some instances this dependency is reversed.  The purpose of this course is to provide an in-depth theoretical analysis of a selected foreign business system (South Africa) and explore a conceptual framework for analyzing any business system.   The objective is to explore various issues managers need to consider when they operate in an emerging market such as South Africa.  How do you recognize, interpret, and respond to a different business system you encounter?  

The course will be grounded firmly in theory and will require some rigorous intellectual effort on the part of students.  However, there will be an emphasis on the practical and experiential and the implications for managers and their organizations. 

 After satisfactory completion of this course students should be able to:

·         describe the important dimensions that differentiates South African and other emerging market cultures from each other

·         relate pronounced variations in culture with differences in business practices and institutions specifically as it relates to South Africa

·         understand and explain why business may be conducted differently in different places based on different underlying cultural perspectives, socio-historical events, and the systems and processes  with South Africa as a concrete example

·         identify situations where different cultural perspectives give rise to differences between systems or methods for addressing the same business problem with specific emphasis on South Africa and other emerging markets

·         analyze business situations in which cross-cultural issues could limit effective business performance and recommend approaches for managing that situation

·         effectively modify their behavior so as to function successfully as a businessperson in a wide range of different cultural and institutional settings

·         Post content to trip blog and generate elements for a Podcast.

 

Required Reading

1.      The thick description and comparison of societal systems of capitalism, by Redding, Gordon. Journal of International Business Studies,  2005/03 Vol 36 Issue 2 Page 123-55 ISSN: 00472506. 

1. Strategies That Fit Emerging Markets (Tarun Khanna, Krishna G. Palepu, and Jayant Sinha, Harvard Business Review, June 2005) [pp. 63-76]
2. Harvard Business School Cases
   1. De Beers Consolidated Mines Ltd. (A), Publication Date: Oct 16, 1990, Author(s):  Pankaj Ghemawat, Toby Lenk     
   2. Global Wine Wars: New World Challenges Old (A), Publication Date: Sep 17, 2002, Author(s):  Christopher A. Bartlett, Janet Cornebise, Andrew N. McLean
   3. Woolworths South Africa, Publication Date: Oct 7, 1997, Author(s):  David B. Yoffie, Anthony St. George    
   4. HIV/AIDS in South Africa–2001, Background Note , Publication Date: Feb 15, 2002, Author(s):  Joel Podolny, Kanika Bahl, John Newsome  
   5. Habitat for Humanity International in South Africa, Publication Date: Nov 29, 2006, Author(s):  Arthur I. Segel, Nicolas P. Retsinas, Nelson Hioe   
   6. Forever: De Beers and U.S. Antitrust Law, Publication Date: Feb 1, 2000, Author(s):  Jennifer Burns, Debora L. Spar
   7. South African Airways (A), Publication Date: Feb 26, 2007, Author(s):  Joshua Margolis, Laura Morgan Roberts, Laura Winig 
   8. Barloworld: Action Learning in Argentina, Brazil and Chile – The ABC Programme (A), Publication Date: Mar 23, 2004,  Author(s):  Paddy Miller, Jordan Mitchell, Source: IESE Business School
   9. AngloGold: Corporate Responsibility for HIV/AIDS (A), Publication Date: Jan 31, 2003, Author(s):  Diana Barrett, Amanda Key  
   10. Old Mutual, Publication Date: Aug 23, 2000, Author(s):  Tarun Khanna, Krishna G. Palepu, Kirsten J. O’Neil-Massaro     
   11. Londolozi: Towards a Sustainable Business Model and Ecological Integrity in Southern Africa, Publication Date: Jul 29, 2008, Author(s):  Rawi Abdelal, Thomas Koelble
   12. Remaking the Rainbow Nation: South Africa 2002, Publication Date: Feb 26, 2002, Author(s):  Rawi Abdelal, Katherine E. Cousins, Debora L. Spar

GRADED ACTIVITIES

 

Class, Travel & Colloquy Participation

All students are expected not only to attend the classes prior to the trip, but also to actively participate in class discussions and activities.  During the trip active participation meetings and discussions is required.  In addition, there will be several colloquies during the trip during which there will briefings on upcoming events, debriefings on recent events and overview discussions. 

 

Web Blog contribution

You will need to post regularly to the trip blog

At a minimum, the following 9 (nine) blog posts are required:

1.      Before we depart a piece on your expectations before the trip

2.      At least 7 (seven) contributions to the blog during the trip 

3.      Within a week after we return a summary on your “lessons learned” during the trip

 

PodCast elements

We will compile a Podcast on our trip to South Africa and you will be required to participate in this project.  You will need to make a total of at least 7 (nine) video segment contributions.   Each contribution should be approximately 60 seconds (one minute).  We will have more than one video camera with us you will be available to make your contributions with these camcorders or using your own equipment. 

The following specific podcast contributions are required:

1. At least one pre-trip video element on your expectations.  This can be done here in Atlanta during classes, at the airport, on the plane or upon arrival.  This element needs to be completed before midnight, May 10, 2009
2. At least 5 (five) video segment contributions during the trip 
3. One post trip element to be completed before we collect our baggage in Atlanta upon our return. 

Written Case Analysis

You will be expected to prepare individual written case analyses (3 double-spaced typewritten pages each).  Some cases will be assigned as a written assignment to the entire group and some to only some students.  In total each student will be required to complete 3 (three) written case submissions and participate in ALL case discussions.  Some cases are company specific and some cover an industry or national issue.  Your analysis will require you to identify the business issues implicit or explicit in the situation, explore likely underlying causes and opportunities, and suggest a feasible course of action for management that follows from your work.  We encourage you to view these analyses as you would business dilemmas you will likely encounter in your career.  Hone your skills to communicate effectively and concisely.  See the schedule of Classes for specific due dates.

 

Group Presentations & Briefs

We will create small teams (3 students to a team) who will be responsible for doing research on (a) a company and (b) an industrial sector.  These assignments will be selected to ensure that each student covers at least two different sectors; the industrial sector assigned will be different from the sector in which the company assigned operates.  See the schedule of Classes for specific due dates.

·         During the trip there will be sessions when these teams will do short presentations in anticipation of company or institutional visits to brief the study trip participants on the background of the company and/or sector. 

·         After each meeting we ask these teams to will briefly summarize the visit. 

·         In addition, each team will submit a 5 page Brief on the company and the sector.

 

Pre-departure Group Assignment

The small teams (3 students to a team) we create will work together throughout the course and trip.  Before our departure on May 9, 2009 each team will need to submit (about 7 pages) a paper on the Financial and Non-Financial Strategies for South African businesses.

 

Field Study Assignments

At the end of the course, upon your return to Atlanta, each team will be required to submit 2 (two) field study reports of approximately 7 pages each.  You are expected to demonstrate what you learned during the study trip and how you integrate what you learned into a theoretical framework.   See the schedule of Classes for specific due dates.

The following two reports will be required:

1. Doing Business in South Africa.  The objective of this assignment is to use the “nine boxes” model proposed by Redding to:

a.       Provide a picture of the business system of South Africa indicating the major components in each one of the nine boxes, including material and ideational logics

b.      Based on this conceptual framework, explain why South Africa offers specific opportunities or pose specific challenges in some industry segments and not in others?

c.       Explain how and why the system may be expected to evolve or otherwise change in coming years

d.      Review how does these opportunities and/or challenges differ from those in non-emerging economies (specifically the United States)?

e.       Discuss the managerial implications of your analysis

2.      Company and sector analysis.  (Note: Students electing to receive 3 hours credit in Finance, see note at the end of this section.)  The objective is to prepare a report that reviews and company and the mains sector in which it operates, with specific emphasis on:

a.       The opportunities and challenges faced by the company within South Africa

b.      The opportunities and challenges required to compete internationally or imposed by global competition

c.       Finding the human resources to manage the future

d.      Raising the capital required to support a competitive posture and growth

e.       Financial aspects of operating in South Africa

f.       Compliance with Black Economic Empowerment (BEE)

For students electing to receive 3 hours credit in Finance, this second field-study assignment requires the preparation of a summary of the financial aspects based on your field visits to

A) Sanlam,  b)Coca-Cola, c) Johannesburg Stock Exchange, d) De Beers, and e) any other. 

 

Course Schedule of Classes

 

Class Period One – Thursday, April 30, 2009 – 5:30 pm  - 9:45 pm

The Glue that Holds it all together – Investing in South Africa

Instructor: Milind Shrikhande

 

Class Period Two – Saturday, May 2, 2009 – 8:00 am – 12:00 pm

The Glue that Holds it all together – Global markets and South Africa

Instructor: Milind Shrikhande

Assignments:  Case Analysis – to be announced

Accounting Standards & Tax Issues: South Africa

Guest Speaker: Richard R Rubin

 

Class Period Three – Saturday, May 2, 2009 – 1:30 pm – 5:30 pm

International Business – A conceptual Framework

Instructor: Jacobus Boers

Reading Assignments: The thick description and comparison of societal systems of capitalism,

 by Redding, Gordon.

Administrative – Assignments (cases, industries, companies) and Forming Teams

Overview of the sociopolitical environment of South Africa – history, culture, traditions, politics, health and social structure

            Instructors: Pedro Carrillo & Jacobus Boers

Reading Assignments: Remaking the Rainbow Nation: South Africa

2002, by Abdelal, Cousins, & Spar

 

Class Period Four – Thursday, May 7, 2009 – 5:30 pm – 9:45 pm

Emerging Markets, Regional Economic Integration and Globalization: the case of South Africa

Instructor: Jacobus Boers

Reading Assignments:

a.       Global Wine Wars: New World Challenges Old by Bartlett, Cornebise, & McLean

b.      Barloworld: Action Learning in Argentina, Brazil and Chile – by Miller, & Mitchell

 

Overview of the economic environment of South Africa – industrial sectors, trade and investment

            Instructors: Pedro Carrillo & Jacobus Boers

Reading Assignments:

a.       Strategies That Fit Emerging Markets by Khanna,. Palepu, & Sinha

b.      For background only Woolworths South Africa, by Yoffie, & St. George

c.       For background only Old Mutual, by Khanna, Palepu,  & O’Neil-Massaro      

Administrative – plane tickets, packing, safety, communications, blogging, code of conduct