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DRAFT
B60.3335.U1 Operations for Global Entrepreneurs
Summer 2008
Stern School of Business, NYU
Days: August 12-31, 2008
Hours: alternate schedule
Room: TBA
Professor: Dr. Ehud Menipaz
e-mail: [email protected]
Telephone: TBA
COURSE OVERVIEW
Small and medium size (SMEs) businesses are recognized as main engines of economic
progress in both developed and emerging economies. The contribution of SMEs to the
Gross National Product (GNP) is accounted for and analyzed by leading research groups,
such as the Global Entrepreneurship Monitor (GEM) consortium. Governments and Non
Government Organizations (NGOs), financial institutions and academic organizations
around the world are urgently vying to create a well supported statutory and educational
infrastructure that allows SMEs and entrepreneurial ventures to succeed and become
sustainable. At the same time efficient and effective operational practices and strategies
that fit the special business needs of SMEs are not dealt with.
This course is designed to provide the essential elements of operational practices and
strategies that are geared towards SMEs in an international setting, including new,
entrepreneurial, venture start - ups. The course provides a "road map" for dealing
successfully with international ventures with a particular emphasis on strategy and
operations. The course involves a real life case analysis with leading international
industry executives, dealing with real life issues communicated through in person and
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video-conferencing, as well as in class discussions. The topics cover a wealth of business
challenges and opportunities in a global setting.
The course is aimed at four types of students; (1) Entrepreneurs that are plan for
international success, (2) those who will be investing in midsize, global oriented
companies, including those in emerging economies, (3) those who want to manage global
growth of established companies and (4) those who want to consult to companies that are
attempting to grow internationally.
COURSE DESCRIPTION
The course consists of several parts, including the identification of key operational
characteristics of globally oriented SMEs and the identification of appropriate
management standards, practices and strategies.
Part 1: National and International Operations Strategy?
What is the business model?
What are the operational strategies?
What operational problem is to be solved?
What am I selling (and not selling)? What is my unique advantage?
Who will pay for this? How much? Under what conditions?
Why expand beyond borders (Increase benefits, reducing costs, both?)
What is the business unit development cycle (start, growth, maturity, decline,
local, regional, global)?
Why and how to expand operations?
Primary business venturing issues?
What is the minimum resources needed (financial, human, technology,
operational) to assure efficiencies and to start realizing revenue?
Part 2: Organizing a Global SME
How to design and structure the supply chain, including distribution channels?
What to organize for warrantee service and life cycle support services?
What consideration should be given to the financial structure?
Corporate financial engineering and structure, duties and tax regimes.
Part 3: Operations of a Global SME
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How to organize core and non-core activities? What to outsource and what to sub
contract?
Co-operation considerations: Online? Alliances? Partnerships? Joint ventures
(JVs)?
Part 4: Controlling and Auditing of a Global SME
What operational measurement systems to deploy?
Revenue and cost protection issues
Quality management, ISO and 6-Sigma
Information systems and reporting
Efficiency and effectiveness
Risk and crisis management.
A single course cannot fully cover all operational strategies and issues that are faced by
SMEs from start up through growth to maturity. One must be realistic about what an
academic course can accomplish. Thus, an important objective of the course is to
highlight key issues pertaining to operational strategies and practices and help executives
and would be executives develop an agenda for future learning.
Class participation is vital, so students are expected not to miss any classes. A significant
percentage of the grade is ear-marked for class participation. The student body
personifies a vast and relevant managerial experience. Thus, students are expected to
prepare in depth and contribute to class discussion.
There is a Reading and Case Book for this course. Some additional reading may be
distributed in class. There is no textbook for this course. However, several relevant
references are indicated in the bibliography.
COURSE REQUIREMENTS
This syllabus describes the major requirements for the Operations for Global
Entrepreneurs course:
The on going case write-ups
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Class participation
Mini project
The grading system
1. ON GOING E-MAIL CASE WRITE-UPS:
For each session with a case, the student is required to submit electronically a brief
response to a set of questions related to the case. Submissions are due by 11:00 PM the
night before the next class. The submission will be graded as follows:
NS = no submission is made.
G = Good, case has been read, but not much thought was put into answering the
questions.
VG = Very Good, case was read and questions were answered well.
E = Exceptional, case was read and an outstanding job was made to answer
questions extremely thoroughly and thoughtfully.
Comment: VG is a top grade. E's are given occasionally to recognize outstanding
preparation and allow upgrade in specific instances.
2. MINI PAPER: Global Strategy & Operational Study
Students will form self-selected groups (of up to 4 member students) to write an
operational study for a SME type business. The paper should be a maximum of fifteen
pages, using 12-point Times New Roam font, and have five one-page appendices, for a
maximum total of fifteen pages plus cover sheet.
It should address the following:
Background information: product or service, market, competition
Operations strategies and practices audit
Implementation plan including action items, timeline and assignment of
responsibility.
Appendix 1
Summarize, on one page, what you learned about your selected SME's business and
operational strategies from the provided data, including presentations by key managers
and stakeholders. Provide a short paragraph per interview. These should include potential
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customers (including, if applicable, purchasing managers, distributors, buyers and end-
users), suppliers, investors, people in similar businesses and industry experts.
Appendix 2
For your implementation plan, include a list of your business, development, production
and sales goals and the step-by-step tasks that need to be accomplished to achieve these
goals. Describe the backgrounds and competencies of the full and part-time team
members and/or advisors required to ensure the successful completion of these tasks.
Examples might include: (1) Lining up manufacturers and/or sources of supply; (2)
Meeting with actual customers and securing orders; (3) Lining up possible distributors;
(4) Identifying and securing key personal; (5) Finding and renting office space and
equipment; (6) Arranging for CRM service.
Milestone Due Dates:
08/17: One page description of the SME and group members
A two minutes presentation is required
08/24: Background material
08/26: Operational analysis
08/28: Implementation plan
08/31: Final paper
Each group will make a ten (10) minute presentation of the project followed by Q & A.
Presentations are scheduled for the last four sessions.
Students are reminded that teams of up to four students may work on a single paper,
and the paper should be limited to 15 single-spaced pages. Exhibits and appendices are
to be attached as required.
GRADING
The following system will be used in grade distribution in our class:
Mini Final Paper 35%
Class Participation 35%
On going E-Mail Case Write-ups/submissions 30%
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It is a pleasure having you on board!
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GENERAL COURSE OUTLINE
Part 1 – Expanding Across Borders: SME StrategySession 1 – The Advent of SMEs and Entrepreneurship
Case/ReadingSession 2 – The Business Model and Operations Strategy
Case/ReadingSession 3 – Operations Strategies
(Integrating people, systems, technology, processes, leadership: order winners, speed)Case/Reading
Session 4 – Operations, Environmental Issues, Social Responsibility, IndividualBusiness and Society (IBS) ConsiderationsCase/Reading
Part 2 – SME Organizing and Infrastructure Session 5 – Location and Layout
Case/ReadingSession 6 – Suppliers, Negotiation for Results
Case/ReadingSession 7 – Technology Selection and Use, Internet, e-Commerce
Case/Reading
Part 3 – SME Organizing Operations Session 8 – Supply Chain Management (Outsourcing, vertical integration)
Case/ReadingSession 9 – Operational Alliances and JV
Case/ReadingSession 10 – Call Centers and CRM
Case/ReadingSession 11 – After Sale Service and Support
Case/Reading
Part 4 – SME Honing the Business: Controlling and AuditingSession 12 – Quality Management, 6-Sigma and ISO'ing
Case/ReadingSession 13 – Information Systems and Reporting
Case/ReadingSession 14 – Risk and Crisis Management
Part 5 – The Global SME: A RoadmapSession 15 - Management, HR, Marketing
Accounting, finance
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COURSE SESSIONS
Session Topic Method Reading Assignments
Case Preparation
(Mostly from ECCH case collection)
1 Introduction to Course Outline
Lecture None None
2 Part 1 – Expanding Across Borders: SME Strategy
The Advent of SME's and Entrepreneurship
Case Discussion "How Entrepreneurs Craft Strategies that Work"
'"From Hen-House to Riches': The Story of How Peter Fitzgerald Built Randox Laboratories (Biotechnology)
3 The Business Model and Operations Strategy
Case Discussion "The Internationalization Process of the E-Marketplace FoodIT A/S"
"Plasma Ireland"
4 Operations Strategies (Integrating people, systems, technology, processes, leadership: order winners, speed)
Case Discussion Forecasting "Dr Paul Lohmans Redefining the US Sales and Distribution Function (A)"
5 Operations, Environmental Issues, Social Responsibility, Individual Business and Society (IBS) Considerations
Review of Students Projects
2 minute presentation followed by discussion
"Some Thoughts on Business Plans"
Dr. Paul Lohmans: Redefining The US Sales and DistributionFunction B
6 Part 2 - SME Organizing and Infrastructure
Location and Layout
Lecture:
Guest Speaker:
None "Hong Kong's Trading Industry: Challenges From Mainland China"
7 Suppliers, Negotiation for Case Discussion None
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Results
8 Technology Selection and Use, Internet, e-Commerce
Case Discussion None "The Internationalization Process of the e-Marketplace Autocom A/S"
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9 Part 3 - SME Organizing Operations
Supply Chain Management (Outsourcing, vertical integration)
Lecture
Guest Speaker:
"Mei Lin is Ill (China)"
10 Contracting Case Discussion
11 Operational Alliances and Joint Ventures
Case DiscussionGuest Speaker:
“Leccothech: The Whole Product Concept in Marketing
12 Call Centers and CRM None None
13 After Sale Service and Support
Guest Speaker: None None
14 Part 4 - SME Honing the Business: Controlling and Auditing
Quality Management, 6-Sigma and ISO'ing
Case Discussion None "Quality Management in a Small Engineering Firm: Barcol-Air Engineering and ISO 9002-1994 Certification(Singapore)"
15 Information Systems and Reporting
Case Discussion
Guest Speaker:
None "ERP Implementation at M/S Network Clothing Company: A Small Scale Enterprise (SME) Success Story"
16 Part 5
Family business, Risk and Crisis Management
Case Discussion
17 Operations, Family Business and Marketing
Case Discussion Galway Bay "Health Farm: Spa and Relaxation Centre”(Ireland)"
"Moiselle: Pret-A-Porter Hong Kong Style"
18 Crisis Operations Management
None "Amul Ice Cream: Marketing Strategy”(India)
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19 - 24 Mini project/case presentations
BIBLIOGRAHY
Alvarz, S. A. et al (2005). Handbook of Entrepreneurship Research, New York, NY, Springer.
Cavusgal, S. T. et al (2008). International Business. Upper Saddle River, NJ: Pearson/Prentice Hall.
Deakins, D., (1999). Entrepreneurship and Small Firms, London: The McGraw-Hill Companies.
Gregory, A. (2004). Running like clockwork. Works Management, 57, 2, 14-17.
Hines, P., Lamming, R., Jones, D., Cousins, P., & Rich, N. (2000). Value Stream Management. Harlow, UK: Pearson Education Limited.
Lovelle, J. (2001). Mapping the value stream. IIE Solutions, 33, 2, 26-33.
Swanson J.A. and Baird M. L. (2003). Engineering Your Start-Up A Guide for the High-Tech Entrepreneur, Belmont, CA: Professional Publications Inc..
Stutely, R. (2002) The Definitive Business Plan, Upper Saddle River, NJ: Pearson/Prentice Hall.
Zimmerer, T., W., and N., M., Scarborough (2002). Essentials of Entrepreneurship and Small Business Management. Upper Saddle River, NJ: Pearson/Prentice Hall.
Wood, N. (2004). Learning to see: How dose you supply chain function? Management Services, 48, 4, 16-20.
MINI-PROJECT OPPORTUNITIES: The Master Class Component
Mini-Project Goals :
The mini project is essentially a corporate consulting assignment, in an integrative
seminar format, aimed to implement the theoretical backgound that the students are
exposed to during their course of study. The students are expected to offer a coherent
solution to real issues presented by participating firms. The issuse may range from intra-
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enterprise problems, such as production, operations, or sales to global corporate strategy,
mergers, acquisitions and joint ventures. A special attention is given to the globalization
of business ventures. Students analyze these real-life business managementl issues by
communicating with the corporate officers, collecting and analyzing corporate and
market data, and presenting the recommendations in a writen report including a business
plan. The teams will present their findings to the corporate officers as well as to their
counterparts.
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Project List (Initial)
Note: The final project list will include businesses targeting markets and base of
operations in the mature economies, such as, North America, Europe as well as
developing and emerging markets in Eastern Europe, Asia and the Far East.
Netafim
Who we are
Netafim was founded in 1965 by farmers and agronomists on the idea that micro-
irrigation is a solution to one of the world's most urgent problems: lack of quality water
for food production. That idea is still at the heart of all Netafim products, which are
designed to promote water conservation. Today Netafim is among the largest irrigation
companies in the world, with factories and offices in over 120 countries.
Business operations & strategy dilemma for the global entrepreneur
Launching a new irrigation control product (CMT) globally (Technology and
international business plan issues)
Ormat Technologies, Inc
Who we are
Ormat Technologies, Inc, (NYSE: "ORA") is a leading vertically integrated company
dedicated to providing solutions for geothermal power, recovered energy generation
(REG) and remote power. Ormat presents innovative, powerful technological solutions.
Most of Ormat's products and business activities are based on its original Ormat Energy
Converter (OEC), a field-proven technology for utilization of low and medium
temperature heat sources, in which Ormat is the world leader.
Business operations & strategy dilemma for the global entrepreneur
International business plans for energy saving technologies.
Panorama Software
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Who we are
Panorama Software is a business intelligence software company. With Panorama
NovaView and Panoram's competitive expertise and support, companies can create BI
solutions that fit all their needs, not just their technical requirements. The organization as
a whole gets the power, control and long term viability of a complete BI system. As well,
each individual user can get focused on the most important and relevant data they need
and focus on building the business. With Panorama corporations go beyond BI to engage
in proactive business management.
Business operations & strategy dilemma for the global entrepreneur
International operations and business strategy for BI solutions corporation.
Formula Vision Technologies
Who we are
Formula Vision Technologies (TASE: FVT) is a holding company, managing a
group of software companies with innovative, proprietary technologies and
solutions targeting international markets. Formula Vision's affiliate companies are a
broadly diverse group, with leading-edge IT solutions in fields including Telecom,
Healthcare, Aviation, Travel, Insurance, Retail, Customer Relations Management, 3-D
Modeling, Software Testing, System Reliability applications which meet the demand for
Web based systems, legacy mainframe and mobile networks. Formula Vision provides its
affiliate companies with guidance and support at all levels - management, strategy,
technology, marketing and public relations, business intelligence, investor and analyst
relations, finance and more.
Formula Vision's companies have built their success on a solid customer base and
strategic partnerships with Fortune 500 multinationals, system integrators, media groups,
and service and solution providers worldwide. The group has partnered with leading
investment groups, both in Israel and internationally.
Business operations & strategy dilemma for the global entrepreneur
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Global operations and business strategy for the twelve Formula group of companies,
including cost cutting measures and global market assessments.
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Diesenhaus Unitours
Who we are
Part of IDB Holdings, Diesenhaus-Unitours enjoys strong financial backing and has
powerful buying strength with all tourism suppliers, while employing the most
professional, service-minded staff.
Diesenhaus Unitours Incoming Tourism is part of this large tourism concern, that
incorporates branch offices country-wide that specialize in all facets of travel - the
Company employs a total of over 500 personnel and generates a turnover of more than
US$250m annually.
Business operations & strategy dilemma for the global entrepreneur
Become a global tour operator.
ECI Telecom
Who we are
ECI Telecom is a leading supplier of best-in-class networking infrastructure equipment
for carrier and service provider networks worldwide. ECI platforms - many serving
multiple functions - are designed for maximum efficiency and flexibility for the
customer, enabling tomorrow's voice, data and video services while also resulting in the
greatest level of cost savings for the service provider.
Founded in 1961, ECI has grown from a small technology company into an experienced
global provider of networking infrastructure equipment to the world’s largest carriers.
Also a market leader in many emerging markets, including India and the former Soviet
Union, ECI provides efficient, scalable networking infrastructure that serves as the
foundation for the communications of tomorrow.
Business operations & strategy dilemma for the global entrepreneur
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International business plan for encryption card of the new age.
Teva
Who we are
A world leader in generic, ethical and bio-engineering products, Teva is indeed a global
corporation with a continuous agenda of effective and efficient globalization strategy.
Business operations & strategy dilemma for the global entrepreneur
Global financial engineering; Archives and documentation strategy and plan.
Tri-Logical Technologies
Who we are
Tri-Logical develops and supplies products for the management of mobile assets
(personnel and equipment) both for the civilian and the military markets. These products
mainly include: fleet management solutions, personal locator systems, solutions for
command & control centers and solutions for security of complex facilities.
Tri-logical provides complete end-to-end solutions, including integration into OEM’s
systems. In addition, turnkey systems are built from modules customized to specific
needs, and integrated with Tri-Logical's existing modules. Additional modules can be
developed as needed.
Tri-Logical integrates its products with cellular communications components, GPS,
mobile peripheral equipment, sensors and controllers, to provide “on the shelf systems”
as well as “tailor-made” solution to meet the customer needs.
Tri-Logical has established strong, long-term relations with a variety of leading partners
that include leading Israeli cellular carriers, leading Defense industries, leading Israeli
transportation providers and Software, Hardware and OEM Partners. For more
information please visit: www.trilogical.com
Business operations & strategy dilemma for the global entrepreneur
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Until 2007 Tri-Logical mainly focused on the Israeli market but in 2007 Tri-Logical
started with marketing and sales efforts in Europe. In 2008 Tri-Logical is planning to
resume marketing and sales efforts in the US.
The main business dilemmas Tri-Logical is facing right now with respect to its overseas
marketing and sales efforts are as follows:
What are the products and sale channels Tri-Logical has to concentrate on while
trying to achieve a breakthrough in its overseas sales?
What markets should the company concentrate on (Europe, the US, Far East)?
Common Sense
Who we are
Common Sense develops indicators utilizing common hygienic products such as panty-
liners, tampons and diapers that enable self monitoring of vaginal secretions, collected
non-intrusively, all of this without affecting in any manner the current routine of using
panty-liners.
Common Sense also develops unique, easy to use, point of care solutions which assist
physicians in determining the source of various vaginal infections. All of these patented
properties which are the core of the indication capabilities are assembled on a non-
intrusive panty-liner, as well as on medical swabs.
These novel technologies indicate, by color change, that the acidity parameters of the
discharged secretion are disordered. Another important aspect of this technology is that it
is possible to distinguish between urine and amniotic fluid, thus enabling the use of this
technology in pregnancy related applications. For more information please visit: www.cs-
commonsense.com
Business operations & strategy dilemma for the global entrepreneur
Our main focus market is the US and the business dilemma we are facing is how to sell
our products in the US. The possibilities we are considering are direct sales thorough a
US based subsidiary or through distributors.
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In addition, we want to know on what distribution channels we have to concentrate on
while trying to achieve a breakthrough in the US.
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Cellaris
Who we are
Cellaris® develops, manufactures and markets revolutionary ceramic foams capable of
withstanding extremely high temperatures, up to 1750°C (3200°F). These non-fibrous,
highly-porous, ultra-light ceramic products, registered under the trade name of Lite-
Cell®, are produced by a unique, proprietary and patented technology that is based on
sol-gel chemistry. Cellaris® groundbreaking technology of producing ceramic foams
provides the next-generation platform for the multi-billion dollar market of high-
temperature applications, including furnace insulation, kiln furniture, burner blocks, fuel
cells and heating elements. Other industrial uses include catalytic supports, filtration
media, aviation and combustion systems.
Cellaris built and commissioned an industrial pilot plant at the Bar-Lev Industrial Park in
Northern Israel. Production and delivery of commercial orders began in early 2005. For
more information please visit www.cellaris.com .
Business operations & strategy dilemma for the global entrepreneur
Our production capabilities are limited at this stage. We estimate that in order to
revolutionize the high temperature applications market we will need to increase our sales.
An investment of $25M - $30M will enable Cellaris to reach sales levels of $50M a year
with a gross profit of more than 50%.
The main business dilemma we are facing today is the choice among the following
growth alternatives: (a) joint ventures with one of the market leaders, (b) licensing
relationships, (c) inner growth, or (d) going public.
Modelity Technologies
Who We Are
Modelity provides banks, insurance companies and other financial institutions with
flexible platforms for financial modeling and portfolio analytics. The financial models
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which Modelity develops enable financial institutions to remain competitive and improve
service levels. Modelity's current leading products include:
Modelity Advisor - a platform for financial modeling, providing advisors with client
profiling, financial advice, portfolio analysis, control and management tools.
Modelity Structures - a complete solution that provides comprehensive management of
structured products for the buy side, including product definition and testing,
marketing and back office operations.
Modelity Fund - a platform that provides fund managers with decision support tools in
the areas of portfolio optimization, risk management, performance attribution and
more.
At this stage Modelity’s products are being used in many of Israel’s leading financial
institutions, including Israel’s two biggest retail banks and Israel's two biggest pension
fund management. For more information please visit: www.modelity.com
Business operations & strategy dilemma for the global entrepreneur
In 2007 we started with marketing and sales efforts in the Europe – mainly our Modelity
Structures solution. We are currently considering whether to include the US in our 2008
overseas sales and marketing efforts.
Our main dilemmas regarding the Modelity Structures solution are as follows:
On which clients should we focus on (i.e., retail bank, investment banking, financial
advisors and distributors).
Direct sales vs. product distributors.
Product pricing.
Selling Modelity Structures as service or as products.
Using current/expected regulations as leverage.
Comment: In all cases a letter of commitment as well as a non disclosure memo may be
signed by the student and the corporation.
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