1. “Current Challenges in
International Business &
Implications for Education”
global business movements backed by academic research
Oliver Parker
Tuesday, 28th April 2015

2. Current Challenges in
International Business
IB Environment
IB Knowledge & Management
GovernmentPolicies
Globalisation&Trade
Czinkota, Ronkainen et al, (2009), International Business, John Wiley & Sons Ltd, England.
International
Business

3. • Intellectual Property –
• Globalisation, Promotion of R&D, increase innovation
• Scientifically Advanced developing nations; WPS – positive benefit with MNCs,
• Copier & Producing nations; WPS – negative effect as will not protect ‘copiers’,
• Developing Countries without Resources; WPS – more difficult to import IPR goods?
• China & India - growing capabilities, directly compete with self developed products /services
•Security & Protection
• Terrorism – turbulent regional conflicts, e.g. Ukraine (Russia) & Middle East (IS)
• Cyberspace & Cloud – “cyber wars” on the increase
• Security now a priority – protection of sensitive info & IP
• Sony computer systems hacked (Nov. 2014)
• Communications & e-Business
• Communications - B2B supply chain and other IB activities
• Overcomes geographic dispersion, time gap, cultural & language barriers
• On-line Shopping + offshore on-line shipping
• logistics over long-distance, local competitors, tariffs & rules, investment in relationships
• Cloud – opportunity as channel or mode of operation
• e.g. Build international networks to suppliers & distributors
IB Environment
Management of Change

4. • Ethics & Corruption, Collaboration, Law & Trust
• Ethics & Corruption – 10-15% of major project expenditure
• social acceptance protects the elite from scrutiny
• Trust - needs to sustained by appropriate institutions
• Law – “foreigners” invest in Western cos.
• ...but financial regulators (FCO, SEC-US)
• Competition Law – EU vs. Gazprom (from 2012)
• Government Policy Changes - Austerity
• China 12th Five Year Plan (2010-15)
• “World Factory to Consumption Powerhouse”
• Balance economy and tame social unrest.
• China ‘Frugality’
• Curb Corruption – Xi Jinping to pursue “tigers” and “flies”
• Drag on China’s economy, reduction of consumption?
• What effect on WMG China programmes? e.g. AVIC 2015
Government Policies
Reaction & Reform

5. • Globalisation – Investment & Competition
• Trade & Investment Barrier Removal
• but ‘mobility’ allows players to move in search of lower costs.
• Fast Developing Nations – BRICS & MINT but BIITS or ‘Fragile Five’
• China – Growth slowdown is relative
• higher labour costs (supported by govt) but lack of talent to go around.
• ‘Cheap China’ to high value manufacturing & service base consumerism
• 2020, Asian middle class consumer to be 40+% of global consumption (Ivey Business Journal 2012)
• Turkey – Europe’s 6th largest economy
• economic growth (8.5% 2012) from manufacturing & construction
• young population, but trade deficit and growing regional conflict (Syria)
• Fragile Five (Brazil, India, South Africa, Indonesia, Turkey); economic prosperity but,
• current account deficits with heavy reliance on foreign capital inflows
• trade deficits, low literacy, poor governance, underdeveloped infrastructure
• Financial World Order – Post Global Financial Crisis, but on-going
• China-led AIIB – rival to US-led WB (Bretton Woods, 1944)
• $8 Trillion for Asian infrastructure projects
• Word Bank & IMF reduced influence, WTO increase in remit
Globalisation & Trade
Changing of the Guard?

6. • International Business Relationships – changing nature
• Electronic Integration & Shared Databases – risk information transfer
• large multi-national projects, e.g. Joint Strike Fighter (F-35)
• MAC - role reversal for developing economies
• Reverse Collaboration – BRICS international growth strategy
• e.g. China in Africa: access to natural resources. Investment aid with ‘few strings’
• Public Private Partnership – investment share & project expertise
• Beijing Metro & MTR Corp, Chinese Health & Medical insurance, & Indian Rail privatisation?
• M&A – direct investment from ‘developing’ regions
• Tata with JLR, Geely with Volvo, Fiat Chrysler Automobiles (FCA)
• Supply Chain - Outsourcing & Offshoring still relevant?
•Total Cost of Ownership - RightSourcing & ReShoring
• Converging Costs (wages) & Hidden Costs (logistics ops etc.)
• Selected return of manufacturing to West
• Location important: Mexico to USA, Turkey to Europe
IB Knowledge & Management
Resourced-based

7. Implications for Professional
Education & Training
IB Environment
IB Knowledge & Management
GovernmentPolicies
Globalisation&Trade
Czinkota, Ronkainen et al, (2009), International Business, John Wiley & Sons Ltd, England.
Professional Education
& Training

8. Implications for Professional
Education & Training
• Full-Time/Part-Time MSc – from IJV to MAC
– Move from IJV to FDI/MAC
• External “symbiotic” Growth: due to FDI ‘liberalisation policies’
• Alternative Sessions: Risk Analysis & Decision-Making (location & partner), e-
Business & Cyber Security, Corp Governance-Ethics-Corruption,
– Better WMG Integration, with other core modules
• e.g. Project Management, Risk Management, Marketing, Operations Strategy
– IB Programme – WMG’s practical management approach:
• Core Modules: Global Environment & Shift, International Strategies, Finance, Marketing
& Sales, Corp Governance & Ethics, Multi-national Team Management, Collaboration,
New Business Start-Up & Entrepreneurship
• ‘Live’ Entrepreneurial Project & Languages
• Other Degree Learning – Distance, Earn & Learn, On-Line
• Warwick vs. The World – in-house vs. in-territory
– Corporate Training: Business Development through Alumni
• Bespoke vocational training – to meet real-time business needs.
– Franchise & Train-the-Trainer:
• target territories & sectors to academic institutions/trainers + Quality Assured.

9. Implications for Professional
Education & Training 2
• Social Media – Flexible & Distance ‘Blended’ Learning
– Managed by Students, monitored by WMG
– Contact current students or alumni (Facebook/Twitter)
– Students: perceived value for employers (without the skills?)
• Webinar & Live On-Line Training
– a presentation/lecture/workshop/seminar transmitted over the Web using video
conferencing
– Group interaction, text chat panel, attendee panel, ppt & video, whiteboards & breakout
rooms
– e.g. Post-Grad Degree On-Line – Istanbul Uni. through London School of Bus. & Finance
• Build-the-Brand & Global Alumni Network
– WMG Brand – Social Media updates & Webinar events
– Mentoring – of new graduates by WMG alumni &
business leaders
– Global Alumni Network – active groups & visiting staff

10. Thank you
&
Any Questions?