Business Operations in Emerging Markets

1. COURSE JUSTIFICATION:
Emerging markets represent more than half of the world’s population, and they are
growing at a faster rate than developed markets, thus, becoming more attractive in
terms of business opportunities.
Even though the world has recently gone through several crises, developing countries
in Asia and Latin America have awaken international companies’ interests due to how
such countries tend to grow.
Considering the relevance of the already stated topic within the frame of international
business, this course aims to qualify students with the needed skills and knowledge to
face challenges and take advantage of existing opportunities within emerging markets.
2. GENERAL OBJECTIVES OF THE COURSE:
• To identify emerging markets principal characteristics, recognizing the
differences with other markets
• To expose the economic, legal, political, social context in emerging markets, as
well as the characteristics of its consumers at each level.
• To describe the potential and opportunities in the most important emerging
markets of Asia, Western Europe, Africa, Middle East and Latin America.
• To identify multinational companies of such emerging markets, their
internationalization process and their particular way to do business.
• To formulate strategies to capitalize opportunities in emerging markets.
3. ANALYTIC DESCRIPTION OF CONTENTS:
3.1. Introduction to emerging markets
3.1.1 What are emerging markets and their importance
Objectives
• To define “emerging market” concept
• To know emerging markets main characteristics
• To understand emerging markets importance
Bibliography:
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
15-48
3.1.2. Emerging markets historical perspective
Objectives
• To recognize emerging markets historical background.
• To identify key elements that determine emerging markets growth.
• To contrast the import substitution model vs. export promotion.
Bibliography:
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
69-100
* Bruton, H.J. (1998). A Reconsideration of Import Substitution. Journal of Economic
Literature, Vol. 36, pp. 903-936.
3.1.2. Economic, legal, cultural, political environment and the role of institutions in
emerging markets
Objectives
• To study the economic, political, legal,
Bibliography:
*Country Watch data base:
http://ezproxy.eafit.edu.co/login?url=http://www.countrywatch.com/ip
3.2. Entry strategies in emerging markets
3.2.1. Analysis of risks
Objectives
• To define which risks emerging markets could face.
• To learn about the existing tools for identifying opportunities and risks.
• To identify Institutional Voids in emerging markets
Bibliography:
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
149-180
*Tarun Khanna and Palepu (2010). Spotting and Responding to Institutional Voids.
Harvard Business Press.
3.2.2. Internationalization as a strategy
Objectives
• To analyze which factors affect the internationalization process in emerging
markets.
• To identify external and internal factors influencing these processes.
Bibliography:
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
266-285
3.2.3. Determinants of attractiveness and dimensions when choosing emerging
markets
Objectives
• To identify factors of attractiveness and opportunities in emerging markets
• To analyze the role of the 4 dimensions to identify the potential of an emerging
market
• To highlight environmental risks and barriers for business internationalization.
Bibliography:
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
104-148
3.2.4. Consumers in emerging markets
Objectives
• To learn about consumer characteristics in emerging markets.
• To study middle and high-class consumer characteristics.
• To analyze the potential of costumers located at the base of the pyramid.
Bibliography:
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
148-213
3.2.5. Building relationships and country brand in emerging markets
Objectives
• To understand the importance of relations in the emerging markets context.
• To analyze the different types of relationships with the various stakeholders:
clients, government, local partners, the community, etc.
• To identify key aspects for selecting a business partner in an emerging market.
Bibliography:
*Ethiopia: An Emerging Market Opportunity? Harvard Business School. June 16, 2015
3.2.6 Negotiation process
Objectives
• To understand the importance of cultural aspects during a negotiation in an
emerging market.
• To analyze peculiarities of negotiations in emerging markets.
Bibliography:
*Ardila López, Carolina. “Caso de Instalación de un Centro Global de Servicios
Hewlett-Packard en Medellín”. Agencia de Cooperación e Inversión de Medellín –ACI.
2011
3.3. Emerging Markets
3.3.1. Emerging markets in Latin America and Africa
Objectives
• To study business environment in Latin America and Africa
• To identify key aspects for making business in Latin America and Africa
• To define the factors that determine entry strategies to such emerging markets.
• To analyze each one of the selected emerging markets: Mexico, Peru,
Colombia, Egypt, Ghana, Nigeria, South Africa.
Bibliography:
*Country Watch data base:
http://ezproxy.eafit.edu.co/login?url=http://www.countrywatch.com/ip
3.3.2. Emerging markets in Eastern Europe and Middle East
Objectives
• To study business environment in Eastern Europe and Middle East
• To identify key aspects for making business in Eastern Europe and Middle East
• To define the factors that determine the entry strategies to such emerging
markets.
• To analyze each one of the selected emerging markets: Poland, Czech
Republic, Hungary, Turkey, Romania, Iran, Israel, UAE
Bibliography:
*Country Watch data base:
http://ezproxy.eafit.edu.co/login?url=http://www.countrywatch.com/ip
3.3.3. Emerging markets in Asia
Objectives
• To study business environment in Asia.
• To identify key aspects for making business in Asia.
• To define the factors that determine entry strategies to Asian emerging markets.
• To analyze each one of the selected emerging markets: Singapore, South
Korea, Indonesia, Malaysia, Thailand and Vietnam.
Bibliography:
*Country Watch data base:
http://ezproxy.eafit.edu.co/login?url=http://www.countrywatch.com/ip
3.4. Emerging Giants and other multinational companies of emerging markets
3.4.1. Multinational companies of emerging markets
Objectives
• To know which are the “emerging giants”
• To study multinational company’s characteristics.
• To analyze internationalization process of such companies.
• To understand the various types of multinational companies in emerging
markets: government companies, conglomerates, etc.
3.4.2. Latin Global Case
Objectives
• To define Latin Globals concept.
• To analyze the internationalization process of Latin Globals
• To study Latin Globals success cases in developed markets
Bibliography:
*Khana, Tarun "Emerging Giants-Building world class companies in developing
countries" Harvard Business Review 2006
*Ciravegna, L., Fitzgerald, R., & Kundu, S. (2013). Operating in Emerging Markets: A
Guide to Management and Strategy in the New International Economy. FT Press. Pg.
242
4. ASSESSMENTS
The proposed evaluation aims to enhance the comprehensive and critical thinking,
and the student must demonstrate its knowledge, identify, compare, classify and also
make proposals, showing true comprehension of the subject with the following:
Case studies 15%
Country Research 10%
Midterm 20%
Country presentations 25%
Final project 30%