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International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
When he did begin to experience the typical symptoms of culture shock, he was able to
recognize them and seek assistance from a professor, which many students will view as an
appropriate and constructive choice. He emphasizes the importance of being patient, and
about the value of experiential learning and relationship building, in order to understand and
perform more effectively within a different culture. He also emphasizes the value of having a
plan regarding what you want to accomplish from the international experience, to help keep
one’s focus and motivation. Some students might find Rangel’s approach to immersing in
another culture to be an exciting notion, and certainly one that will force them to quickly
advance in their knowledge of the language and culture of the host country. Other students
might express less self-confidence about being able to adjust successfully. Asking students
whether they have had a similar experience themselves and exploring the benefits they may
have perceived and lessons they learned, as well as anecdotes about difficulties they
encountered, can contribute to a robust discussion.
2. Rangel emphasizes the importance of relationship building and how experiential
learning in this regard can be invaluable to personal and professional success. Do you agree
with this assertion? Why or why not? What do you think of his recommendations for
addressing this challenge?
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
22 Instructor’s Manual – Module 9 | Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
END OF MODULE EXERCISES
CRITICAL THINKING QUESTIONS
1. What is international strategy? Do you think it is useful for companies to take the time
and effort to prepare international strategies if they are in rapidly changing competitive
situations with high levels of uncertainty? Why or why not?
2. Why don’t companies use the same strategic planning processes for their international
business activities as for their domestic operations?
3. Suppose competitor analysis reveals that the U.S. subsidiary of your firm’s German
competitor is about to broaden its product mix in the U.S. market by introducing a new line
against which your company has not previously had to compete in the home market? Your
environmental analysis shows that the U.S. dollar is expected to weaken relative to the euro,
making U.S. exports relatively less expensive in Germany. Do you recommend a defensive
strategy, or do you attack your competitor in its home market? How will you implement your
strategy?
4. You are the CEO of the Mesozoic Petrochemical Company and have just finished
studying next year’s plans of your foreign subsidiaries. You are pleased that the African
regional unit’s plan is so optimistic because that subsidiary contributes heavily to your
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
company’s income. But OPEC is meeting next month to discuss whether its member countries
should reduce production in order to raise the international price of petroleum. Should you
ask your planning committee, which meets tomorrow, to construct some scenarios? If so,
what about?
5. What are the main strengths and weaknesses of each of the competitive strategies:
home replication, multidomestic, regional, global, and transnational? What challenges arise
under each approach in terms of building and leveraging knowledge that can yield
competitive advantage, and what can companies do to enhance the effectiveness of their
knowledge management efforts under each approach?
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
24 Instructor’s Manual – Module 9 | Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This
document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
centralized production sites, and the risks of locating activities in a centralized location. The lack
of appeal to specific needs of people due to income difference, preferences, as well as cultural
value system, means that not all people can have the same taste or ability to afford
standardized products or services.
The strengths of a regional strategy include the potential value to be derived from thinking of
international strategy within the context of a region-by-region perspective, rather than merely
a nation-by-nation versus a global basis. To the extent that an international company’s market
position varies substantially across regions, strategies may also need to vary by region in order
to accommodate the differing competitive circumstances that confront the company. Yet, even
when management consider the appropriate strategy to use within each region, it may be
useful to consider the relative extent of pressure for local adaptation versus pressure to reduce
costs.
A transnational strategy has strengths when a company simultaneously confronts pressures for
cost effectiveness and local adaptation, and when there is a potential for competitive
advantage from simultaneously responding to these two divergent forces. The location of a
company’s assets and capabilities will be based on where it would be most beneficial for each
specific activity, giving a basis for competitive edge. Achieving and maintaining an optimal
balance in locating activities is a challenge, however. Management must ensure that the
comparative advantages of the locations of their various value chain activities are captured and
internalized, now and over time. The complexity of strategic decisions, and the supporting
structures and systems of the organization, will be much greater with a transnational strategy.
6. If predictions are difficult to make accurately when there are high levels of uncertainty
and change, why would scenario analysis have value? Aren’t scenarios likely to be inaccurate
under such circumstances?
7. What strategic issues arise as a firm considers whether and how to transfer
internationally the unique skills, and associated products, that result from the distinctive
competencies it has developed in its home country?
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International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
One of the major strategic issues that arises when a firm considers the transfer of a skill or
product resulting from a distinctive competency in its home country is, how quickly can the
product or skill be imitated? Can it be easily reversed-engineered and copied, and then brought
to the market at a lower price? Other issues include where to manufacture and how to
distribute.
8. Your firm has used bottom-up planning for years, but its subsidiaries’ plans take
different approaches to goals and assumptions—even their time frames are different. How
can you, the CEO, get them to agree on these points and still solicit their individual input?
9. How can you apply the concepts of strategic planning to your own life, such as for
getting a job or a better job? Which, if any, of the strategic planning approaches would not be
applicable for you, and why?
International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
26 Instructor’s Manual – Module 9 | Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This
document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
media sites). Students usually see that they utilize personal performance measures and have
plans with various time horizons as well. It can be interesting, however, to push a bit on which
of the modules strategic planning elements would be least applicable to students, and why.
This could prove to yield some interesting and potentially illuminating discussions and insights.
MINICASE: The Globalization of Walmart
This mini-case provides an opportunity for students to examine the globalization efforts of the
world’s largest retailer, Walmart. The mini-case examines Walmart’s internationalization
process, including some of the failures and challenges that the company experienced as it
expanded from the U.S. Because of their familiarity with the company, students typically are
interested in this mini-case and are excited to discuss it in class.
1. Why has Walmart viewed international expansion as a critical part of its strategy?
2. What did Walmart do to enable the company to achieve success in Latin America and
China?
3. What should Walmart do—or not do—to help ensure that the company achieves
success in India?
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International Business
Geringer, McNett, Minor, Ball
Instructor Guide to Module 9
27 Instructor’s Manual – Module 9 | Geringer, McNett, Minor, Ball © 2016 by McGraw-Hill Education.
BONUS ACTIVITIES (additional resources not in the text)
This section provides you with support of your course above and beyond what’s found in the
text. We have developed these resources to support your course, to support your traditional,
hybrid, flipped, or online class.
VIDEO SUGGESTIONS
McGraw Hill’s collection of international business videos is available on pinterest at
https://pinterest.com/mheibvideos. The Strategy in the International Business board is one
source that an instructor may find useful tools in. The content is rich and varied, and it is
updated monthly.
first KFC to Myanmar in 2015” to discuss the strategic rationale for a Western fast food chain to
enter into a developing country market such as Myanmar.
The video on “Big Mac Index - explained” provides a cartoon-based explanation of the Big Mac
Index; this video can be found at: https://youtu.be/hzyhZWZue7E. The video “Hollenbeck on
Big Mac Index,” found at https://youtu.be/7QR2D4IGArs, has Frank Hollenbeck explaining the
The video, “Business Development 222: How to Craft a Winning Market Entry Strategy,” at
https://www.pinterest.com/pin/387591111651725948/, helps to explain the factors that a
strategist needs to consider when designing a strategy for entering into a foreign market.
GlobalEdge and the Academy of International Business provide links to a number of
organizations that offer videos about international business. You can find these links at
https://aib.msu.edu/resources/videodepositories.asp.
