MANG3104 International Entrepreneurship Lecture 1 PDF

MANG3104 International Entrepreneurship Lecture 1 Dr Hang Do [email protected] Agenda Part 1:  Introduction about the module  Introduction about lecturers  Tools and reference materials  Class activities Part 2:  Introduction to key concepts in International En...

MANG3104 International Entrepreneurship Lecture 1 Dr Hang Do [email protected] Agenda Part 1:  Introduction about the module  Introduction about lecturers  Tools and reference materials  Class activities Part 2:  Introduction to key concepts in International Entrepreneurship 1. Introduction to the module Aims and Objectives  Develop an understanding and awareness of how entrepreneurs create and manage emerging ventures in other countries  Examine the global and international environments for international expansion.  Understand key factors in developing international strategies and an international business model  Understand how to manage relationships with stakeholders in international markets. 5 Key reference point Module handbook - available from Blackboard - is your main resource on: ✓Learning outcomes ✓Course content and schedule ✓Reading list for each week ✓Assessment 6  Module learning outcomes (i) Knowledge and understanding of: 1.Environmental factors (global and national) influencing international entrepreneurship; 2.Entrepreneurial process in other countries and cultural settings, managing a growth orientated global entrepreneurial venture and international expansion of a venture, relevant sources of financing in international entrepreneurship; 3. Relational aspects of international entrepreneurship that comprise managing relationships with key stakeholders impacting upon any venture 4. The paradigm of ‘corporate social responsibility’, its implications on strategy, policy and practices of global organisations in terms of new business venturing, usually through corporate community involvement 7  Module learning outcomes (ii) Intellectual skills 1. Diagnose and analyse global and national environments (characteristics of economy, society and policy making) for entrepreneurship of all types; 2.Examine the entrepreneurship process and enterprises in different forms such as high technology ventures, social enterprises etc; 3. Identify all key stakeholders impacting upon any venture in international settings; 4.Evaluate the ‘corporate social responsibility’ paradigm and its implications on the new venture development in global organisations 8  Module learning outcomes (iii) Employability /Transferable skills 1. Use a wide range of information sources requiring the development of bibliographic skills 2. Plan and control effectively for successful completion of a personal and group workload; 3. Communicate effectively, in both oral and written form, using and justifying argument within reports, presentations and debates; 4. Carry out team-work effectively. 9  Key reading materials  Module Core text (Essential) Hisrich, R. D. (2016) International Entrepreneurship: Starting, Developing and Managing a Global Venture, 3rd Edition, Sage Publications, Thousand Oaks, CA and London.  Supplementary texts: Hisrich, R.D; Peters, M.P and Shepherp, D.A (2020) Entrepreneurship, 11th edition, McGraw Hill Education, New York, ISBN 978-1-260-56562-1.(Essential)  Plus additional journal articles set weekly in Reading List in Blackboard and any additional attached articles per week. 10  Teaching arrangements Lecturers: Dr Hang Do (module leader)  International entrepreneurship, innovation management, strategic management, and firm performance Dr. Augustine Peprah  Business model innovation, Nonmarket strategy, Institutional voids in emerging markets 11  The module structure L1. Introduction to international L7. Pitching an international 6. entrepreneurship. Drivers and No seminar business idea – theory and Individual constraints (Dr.Hang Do) practice (Dr Hang Do) assignme nt L2. Effectual and causal logic of L8. Social entrepreneurship and ? international entrepreneurship sustainability development in an 1.Assignme 7. BBOXX (Dr Hang Do) international context nt (Dr Hang Do) consultatio L3. Global and national n L9: Corporate Social environments and market Responsibility 8. Karnani 2.Walmart assessment paradigm in an international (Dr.Augustine Peprah) context (Dr Augustine) L4. Stakeholder-centric 3.Groupwork L10. Group presentations (2 Dec) 9.Individual assignment (Dr Hang & Dr Augustine) Assignment entrepreneurship and inclusive guidance tips and Q&A growth (Dr.Augustine Peprah) L5. International market entry 4. Frog L11. International entrepreneurship 10. Airbnb in and international expansion Bikes in platform economy India strategies (Dr Hang Do) (Dr. Augustine Peprah) L6. Develop an international L12. Final lecture -Structured 5. Groupwork Revision and assignment No business plan and financing mentoring surgery, good/bad practice seminar international growth (Dr Hang Do) examples (Dr.Hang Do) 12  Assessment details Group presentation Individual mark 20% of total mark 20 min minutes presentation plus 10 mins Q&A Key date: Presentation in class in Week 10 (2 December 24) Deadline: Submit presentation slides in Turnitin before the deadline 4pm 2nd December 2024) First slide: Group number, student ID of all contributed group members, and the name of 13 the venture.  Group presentation Formulate 3 groups of students – (2 groups of 4, and 1 group of 5) Inform me the list of your group member latest by 10th October (otherwise the module leader will create random group formulation) Task: Pitch an international business plan of your business to enter a foreign market (simulation game format) Check: Assignment/ Blackboard for more details  A peer-moderated marking system 14  Group project mark: an example To illustrate, if a group of 4 students obtains a group mark of 70 for their presentation, their individual mark will be calculated using their individual contribution (as indicated in the self-evaluation report) as follows. Their total pool of marks will be 280 (i.e. 70 x 4). In case every member contributes equally (25% each), then each member will be awarded with the mark of 70. If the level of contribution is different, for example: student 1: 20% student 2: 30% student 3: 25% student 4: 25% This will correspond to the following set of final marks: student 1: 56% (20% x 280) student 2: 84% (30% x 280) student 3: 70% (25% x 280) student 4: 70% (25% x 280) The self-evaluation report should be included in the last presentation slide including: group number, individual student ID, a short description of individual tasks, and level of individual contribution (by percentage). 15 Example of group member contribution clarification Student ID Task Agreed % Member contribution signature 33456789 Competitor 25% Sign here analysis and marketing James Smith  Individual written assignment ▪ counts for 80% of the overall assessment ▪ 2000 words submitted to Turnitin Topic: “Analyse the internationalisation process of an international venture (SME) and critically evaluate their specific problems and solutions in/after entering a particular foreign market”.”. ▪ Check for more details, guidance and structure in Assignment/ Blackboard ▪ Deadline 4pm, 6 January 2025 (Turnitin submission) 17  Key Deadlines 10/10/2024: Formulate a group of 4-5 students (3 groups of 4 and 1 group of 5). 30/11/2024: Inform the module leader your selected company for your written individual assignment 02/12/2024: Group presentations and slides submission (by group presentative) in Turnitin latest by 4pm. 06/01/2025, 4pm: Written individual submission 18  Feedback Verbal Weekly interactive activities at lectures and seminars Written Coursework (4 working weeks after handing in) Email enquiries (normally within three working days), or mutually agreed through correspondence Who else to speak about feedback Tutor Programme leader Academic President/Course rep 19 Code of conduct No private talk during the lectures except for work discussion Proactively engage into the lecture and don’t be shy Please raise your concerns immediately when there is any issue Attendance will be checked daily. In case of absence, you should let me know in advance your reasons. Weekly meeting with your group mates at least 1 hour/ week should be conducted to prepare for group work. No food during lectures/seminars  2. From entrepreneurship to international entrepreneurship  What is Entrepreneurship ? Entrepreneurship is the field of opportunities (Shane and Venkataraman, 2000) Entrepreneurship is “ the examination of how, by whom, and with what effects opportunities create future goods and services are discovered, evaluated and exploited” Source of opportunity Evaluation of opportunity Exploitation of opportunity (see also Shane and Venkataraman, 2000, pag. 218-219) 22 Essential qualities of an opportunity (Barringer and Ireland, 2020) Ways to identify opportunities Observing Solving a Finding trends problem gaps in the Economic Observing a market trends challenge Identify Social trends market niche Technological problems advances associated Product with gaps Political and emerging regulatory trends changes Observing trends (Barringer and Ireland, 2020) Examples Economic trends: Rising personal income e.g. organic food supermarket chain Social trends: e.g. weight-loss apps Technological advances: smart Watch, airpods/ wireless/ sensor products Political and regulatory change: e.g. Covid Solve a problem Problems: 1. find retail locations and restaurants that are stroller friendly in unfamiliar area, daycare and preschool Þ Annie Halsall and Sara Maskopf created Winnie company 2015 (online “Yelp” like platform) 2. Find a parking place in a city E.g. Parking Panda (2011) (find a reserve a space online) Gap in the marketplace 1. E.g. no fitness centres that are open 24 hours a day Þ Anytime Fitness, Snap Fitness, 24 Hour Fitness, The Gym Group. 2. E.g. Lack of toys and toy stores focusing on child’s intellectual development => Wonder Workshop, Osmos Genius Kit, Little Bits  What is international entrepreneurship? Definition is a matter of debate and evolution since 1988 In simplest terms, the process of an entrepreneur conducting business activities across national boundaries (Hisrich, 2016) 29 Group discussion – 10 mins 1. What can you find the characteristics of an international entrepreneur – from the founder of the Bodyshop? 2. How did she identify the opportunities to become an international entrepreneur? International entrepreneur Embraces change Desire to achieve Ability to establish a vision High tolerance for ambiguity High level of integrity Well-being focused (Hisrich, 2006) A Model of International Opportunities (Butler et al. 2010) FOCUS ON: 1) Entrepreneur’s Creativity 2) Particular cognitive structures 3) Ability to absorb uncertainty  3. Drivers and constraints of international entrepreneurship  Motivations for internationalising Technology-related ✓ ICT ✓ Life cycle of the product ✓ Economies of scale Other ✓ Unique market opportunity ✓ To raise quality levels 37 ✓ To enhance reputation Constraints Lack of resources Lack of information Lack of networks Cultural and language barriers Technological environment in different markets Political legal environment Local foreign competition Subsidies offered by foreign governments to local firms Local foreign competition 4. Internationalisation model  Internationalisation Theory Stages models (Forsgren and Johanson 1975) Modes No regular Independent Foreign Sales Foreign export representative subsidiary production Markets s (export and sales modes) subsidairies Market A Increasing market commitment Market B Market C Market D Increasing internationalisation Market E ---- Market N Geographic diversification 40 Internationalisation in different stages Source: Numerla, 2011 41  Born Global Aspects Definition: “the development of international new ventures and start-ups that, from their inception, engage in international business” (McDougal, 1989) Behavioural aspects of established companies included: “a combination of innovative, proactive and risk- taking behaviour that crosses or is compared across national borders and is intended to create value in business organizations” (McDougall and Oviatt, 2000) 42  Stage model or born global? Characteristics Born Global Traditional Firm size Normally smaller size than Vary from micro to medium size (at foundation) traditional firms (5 years internationalisation Market focus Foreign Domestic first, then Foreign. No limits on geographical Focus more on markets similar and distances close to domestic market No. of markets At least 2 foreign markets At least 1 foreign market Advantages Innovative, pro-active, More resources, networks, stronger More customer oriented, wider position in the market market scope Disadvantages Limited resources, networks, Less percentage of foreign market experience, higher turnover, missing foreign market risks opportunities 43  References Hisrich, R. D. (2016) International Entrepreneurship: Starting, Developing and Managing a Global Venture, 3rd Edition, Sage Publications, Thousand Oaks, CA and London. Hirsch, R.D; Peters, M.P and Shepherp, D.A (2020) Entrepreneurship, 11th edition, McGraw Hill Education, New York, ISBN 978-1-260-56562-1. Oviatt, B. M. and McDougall, P. P. (2005). ‘Defining international entrepreneurship and modelling the speed of internationalization’, Entrepreneurship Theory and Practice, September, 537-553. Sarasvathy, S. D. (2010). What makes entrepreneurs entrepreneurial? University of Virginia Case UV 13356, Darden Business Publishing; earlier version available from http://www.effectuation.org/sites/default/files/research_papers/what-makes-en trepreneurs-entrepreneurial-sarasvathy_0.pdf Butler, J. E., Doktor, R., & Lins, F. A. (2010). Linking international entrepreneurship to uncertainty, opportunity discovery, and cognition. Journal of International Entrepreneurship, 8(2), 121-134.