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part 1: Global entrepreneurship class


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Professor Brian Butler. Class at university FBV in Recife Brazil

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part 1: Global entrepreneurship class

  1. 1. Global Entrepreneurship Developing Global Mindset for Entrepreneurs
  2. 2. Brian David Butler Teaching: Brian Butler is currently a professor with Forum-Nexus, which is co-sponsored by the IQS Business School of the Ramon Llull University in Barcelona, and the Catholic University of Milan. He teaches classes on International Finance and Global Entrepreneurship in Europe every July and January. LinkedIn/briandbutler Skype: briandbutler In Miami, Brian has taught Finance, Economics and Global Trade at Thunderbird’s Global MBA program in Miami. He previously worked as a research analyst at the Columbia University Business School in New York City.
  3. 3. Brian David Butler International: A global citizen, Brian was born in Canada, raised in Switzerland (where he attended international British school), educated through university in the U.S., started his career with a Japanese company, moved to New York to work as an analyst, married a Brazilian, and has traveled extensively in Latin America, Asia, Europe and North LinkedIn/briandbutler America. Skype: briandbutler Brian currently lives in Recife, Brazil where he is teaching classes on “Global Entrepreneurship” at the university “Faculdade Boa Viagem”.
  4. 4. Intros
  5. 5. Entrepreneurial Experience:
  6. 6. KookyPlan – wiki for Entrepreneurs
  7. 7. – wordpress MU
  8. 8. GloboTrends – wiki + blog
  9. 9. Introductions: All students introduce themselves: • Level interest in Entrepreneurship? ▫ Ever opened a company before? Why not? (fear of failure? Waiting for “right idea”? ▫ How strong is your interest in opening a company? (1-10)  1 – not sure  10 – sure will, already know idea, have $$
  10. 10. Introductions: All students introduce themselves: • Level of international exposure? ▫ Experience traveling abroad? At what age? Frequency? Duration? ▫ Ever lived abroad? Any interest in living abroad? Where? Why? Study Abroad? ▫ How often do you read international newspapers? Watch international news? Blogs? Other?
  11. 11. Introductions: All students introduce themselves: • Level of comfort with social media - technology ▫ Tech phobic? – or – tech geek? ▫ Experience with blogs, twitter, facebook, other social media? ▫ Web designer? Programmers?
  12. 12. Course Description Syllabus
  13. 13. Course Description • This course presents a systematic overview of the opportunities for global entrepreneurship. • There will be an integrated progression of topics ranging from understanding the political, economic, cultural and economic influences on international trade and investment flows, to the analysis of the strategic and operational alternatives when conducting international business.
  14. 14. Course Description • This course introduces a way of thinking called “global mindset for entrepreneurs”. Through practical case-studies, team projects and meet- ups with local entrepreneurs and organizations, the students will be exposed to the actual implementation of the topics covered in class on real-life companies.
  15. 15. Course Description • Course Objectives • Global Entrepreneur class has four specific goals: 1. To help students learn how to systematically analyze opportunities for global entrepreneurship 2. To familiarize students with the issues and challenges facing global entrepreneurs. 3. To provide students with an intensive experience studying "global" startups. 4. To familiarize students with the power of informal networks and the importance of leveraging networks while working globally.
  16. 16. Course Description • Upon successful completion of this course students will be able to: 1. Develop a solid understanding of the foundations of international entrepreneurship and the cultural context for creating companies in diverse international environments 2. Become familiarized with the causes and consequences of the process of accelerated globalization 3. Examine the strategies and structures that young firms adopt in order to compete effectively in the international business arena 4. Examine the policies and practices of entrepreneurs regarding ethics, social responsibility and the environment 5. Understand changes in technologies and the numerous opportunities they offer for international entrepreneurship
  17. 17. Class Schedule: Topics to cover: Introduction, definitions ▫ Define learning objectives. Learn about student’s international and entrepreneurial experience and aspirations. ▫ Global entrepreneurship – what does it mean to be a “global entrepreneur”? ▫ What are the benefits of global entrepreneurship? What are the challenges? ▫ What are some “global industries”? –ex: pharmaceuticals, banking, internet, technology, media, film, music, travel ▫ Understanding the difference between Global strategies, International strategies, Multinational strategies, and transnational ones.
  18. 18. Class Schedule: Topics to cover: The “Three Questions” framework • The “three questions” framework ▫ “what is the problem, and what are you going to do about it?”; ▫ “What is the trend, and how are you going to get in front of it?”, ▫ “what is great here / somewhere else, and how are you going to localize it?”
  19. 19. Class Schedule: Topics to cover: The “Three Questions” framework • Seeking Opportunities by solving problems: • Analyzing trends to find opportunities: ie. ▫ Awareness of global trends, global business models ▫ Global Trends, changes, risks and opportunities ▫ Global changes in technology, communications, capital markets, regulations, consumer tastes, credit availability, technology and more; and how they create opportunities for entrepreneurs • Localization and replication locally: ▫ International IQ: global awareness, and the opportunities for global entrepreneurs ▫ Mass-Localization vs Globalization: What are “localizing” strategies? ▫ Localization of foreign business models and technology ▫ A systematic approach to analyzing the risks and opportunities; looking at cultural differences, regulatory differences, consumer behavior, tastes, income levels, and more…in the process of evaluating localizing strategies ▫ Benchmarking, and best practices – international inspiration
  20. 20. Class Schedule: Topics to cover: Developing the global mindset for entrepreneurs • Globalizing: Learning to “think global, act global”: Going-global strategies for local entrepreneurs • The challenges of thinking globally for small companies
  21. 21. Class Schedule: Topics to cover: Enabling global entrepreneurs with technology • Using technology for global collaboration, international team-building and cross cultural entrepreneurship: analyzing the challenges for entrepreneurs • Collaborating: the global Value Chain and entrepreneurship • Open source strategy (technology, business models)
  22. 22. Class Schedule: Topics to cover: Cultural aspects of entrepreneurship and innovation: • Benefits of an open society: Immigration and innovation • The importance of Critical Thinking for innovation • “Fail fast” and “global learning” • Communicating across borders and across cultures: challenges for entrepreneurs
  23. 23. Class Schedule: Topics to cover: Entering Foreign markets • Market entry strategy – international marketing – licensing, franchising, JV’s, FDI - • OLI theory of FDI • Foreign Direct Investment • Corporate innovation Competing against global giants • M&A as strategy for building global empires • How entrepreneurs compete vs global competitors
  24. 24. Class Schedule: Topics to cover: Role of global finance for entrepreneurship • International finance – Euroloans, Foreign currency, interest rates – risks, hedging • Venture Capital, seed funding, bootstrap funding Geographical Clusters + Economic Development • Centers / Clusters: What makes Silicon Valley work? • Is India the next emerging competitor to Silicon Valley? • VC and innovation clusters – Silicon Valley, Boston, Israel. What’s missing in Europe? Latin America? • Innovation Eco-systems: ranking cities for innovative potential • Strategy: Building national Champions • Understanding global differences: Unique Brazilian brand of Capitalism • The Chinese model, why it works, what are the risks • Economic development through innovation and entrepreneurship • Do developing nations need technological innovation? Or tech- transfers? • Benefits of an open society: Immigration and innovation
  25. 25. Class Schedule: Topics to cover: Social Entrepreneurship – international focus • Development & Entrepreneurism: Social entrepreneurship, credit to the poor, bottom of the pyramid marketing, making technology affordable Management challenges • Leadership skills, time, money • Developing international leadership skills • Managing across borders – challenges for small companies • Building international teams • Selling in unfamiliar cultures, languages
  26. 26. Course Description • Course Requirements • The course requires active student participation. Students are expected to read the assigned textbook chapters, cases and articles before every class. Punctual attendance is required. There will be a midterm exam, a midterm2 exam, case studies, and a team project.
  27. 27. Course Description • Teaching Procedures and Methodology • Teaching methods used in this course include lectures, case discussions, team assignments, and professional visits. Learning in this course requires the student’s constructive participation and active involvement in both class discussions and small group discussions. Small group discussions, in particular, are a key mechanism for facilitating learning from other team members. Thus, it is essential to attend all group activities inside and outside classes. The corporate visits will expose the participants to different aspects of the class and will highlight the practical relevance of the concepts learned. The visits will be accompanied by individual or group assignments.
  28. 28. Course Description • Language Requirements: • Professor Brian will conduct classes in English, but can answer any questions / doubts in Portuguese. • Students must be able to understand spoken English, and will be asked to submit assignments in English. This is not, however, and English-language course, and the purpose of the class is not to test the students English language skills. Off-Class discussion among students may be conducted in either English or in Portuguese. • The reason that English is important for this class: in order for students to be able to take advantage of global entrepreneurship opportunities, it should be stressed the importance of being aware of technological, scientific and global business trends, many of which are available first online in English-language formats . For this reason, globally minded entrepreneurs should have the basic ability to read and understand English.
  29. 29. TEAM PROJECT • This team project is designed to provide you with a sound understanding of how entrepreneurs that engage in international business apply the concepts discussed in class to make real-life business decisions. Your team assumes the role of consultants that will advise the chosen company on some critical issues related to expanding into a new market. Teams will be made up of 3-4 students each. • Students will be asked to market a good or service from one country to another country. The project must include the following sections:
  30. 30. TEAM PROJECT I. Product and Company Selection • Select a product or service that at least one members of the team has a specific knowledge about and is currently marketed in a foreign country. Describe the product, the manufacturer, and the international business orientation of the firm. II. Market Analysis • Research the possibility of bringing that product/ service to another country (localizing the foreign business). Elaborate a market analysis in which you examine the competitive, economical and political environment that will impact the future success of your product and company there. Focus on the aspects of these environments that are most relevant to your company and product.
  31. 31. TEAM PROJECT III. Market Entry Strategy • After selecting a product and analyzing the target market, evaluate the different market entry strategies available. Assume that the company does not merely want to export its product to the given market, but has plans to develop a more strategic approach to entering this market. IV. Location • As part of your analysis in part III, make sure to suggest one or more particular cities or regions that will play a role in your proposed strategy. Describe the advantages of the proposed locations in terms of operations and distribution among others. • The project report should be between 6 and 8 pages long (Font: Arial, 12; Line Spacing: 1.5).
  32. 32. Grading • Components of Final Grade • Exam a- 20% • Exam b- 30% • Team project 25% • Assignments 15% • Class participation 10%
  33. 33. What is Global Entrepreneurship? Introduction
  34. 34. Global entrepreneurship “Entrepreneurship is the motor of the global economy.”
  35. 35. Global entrepreneurship • Entrepreneurship in the 21st century is evolving. • Because of global changes in technology, communications, and capital markets…. …… today's innovative startups are building successful companies in countries around the globe, in many instances with investors, vendors, customers, and employees located thousands of miles away.
  36. 36. Global entrepreneurship • The challenges these leading-edge companies face, particularly in emerging markets, are some of the most sophisticated issues both for businesses and governments alike. • Many entrepreneurs find it difficult to expand and manage their ventures expanding into the global marketplace.
  37. 37. Opportunities for Global Entrepreneurs: • Never before have there been so many interesting and exciting international business opportunities. ▫ The movement of the once more controlled economies of the former Eastern and Central Europe, the former USSR, and the People’s Republic of China to market orientation, the expansion of the Pacific Rim and South America, and the awakening of countries in the African continent …..provide a myriad of possibilities for entrepreneurs wanting to launch businesses in a global market as well as for businesses of existing entrepreneurs to expand globally.
  38. 38. What is “global” entrepreneurship? • Simply defined, the global entrepreneur is one who conducts business activities across national boundaries (executing his or her business model in more than one country). • The successful global entrepreneur understands how international business differs from domestic business and is able to respond accordingly. • Successful global entrepreneurship needs to take into account the: culture, political and legal environment, economic system and development, technology environment, and the overall infrastructure.
  39. 39. Types of Entrepreneurs 1. Local for local ▫ Fill local void, local opportunity. ▫ Little education necessary. Low growth expected. Opportunity based 2. High growth ▫ Disruptive innovation, technology driven ▫ Examples: facebook, twitter, google 3. Global ▫ Disrupt local, but not necessarily technology, nor necessarily innovative. Often copies of service in one location, transplanted to another. Excellent for emerging markets. ▫ Examples includes exporters, importers, as well as high growth technology with global focus, Indian outsourcing, design firms, and “global nomads” (expats with confidence to go global and startup local companies).
  40. 40. Why go Global Benefits
  41. 41. Why go global? 1. When local market is too small: ▫ Example: a high-end furniture maker in Recife, Brazil would find the local market too small for scale production, so might look internationally at New York, London for clients 2. When you have competitive advantage you wish to exploit globally ▫ Example: lower cost of labor, or high skilled workforce, or raw material exclusive to region ▫ Example: India as tech outsourcing region with high tech workforce, English, fraction of cost ▫ Manufacturing – export, ▫ Service – sell abroad – doctors, accountants, etc.
  42. 42. Why go global? 3. Enter markets before knockoffs ▫ International clones (copies of business model) spread quickly, so you need to launch GLOBALLY from the start (in multiple languages) • Yes, you come up with a great idea in the USA, and it works well...and then...someone in Germany copies it, but offers it in multiple languages (which Europeans are good at doing), and next thing you know, they are selling well all across Europe, Latin America, Asia...and are doing better than the original. • This is an accelerated product life cycle.
  43. 43. Why go global? 4. Network effect = global dominance ▫ Example of Facebook vs. MySpace
  44. 44. International Strategy – comparing Facebook with MySpace – 2 years ago
  45. 45. International Strategy – comparing Facebook with MySpace – 2 years ago • Back in 2008: ▫ “Facebook is now the largest social network in the world. ▫ But they continue to trail MySpace by a massive 36 million users in the U.S., and at current growth rates it will take them 18 years to overtake them.
  46. 46. today • Facebook is the world’s largest social network, with over 400 million users, 130 million unique visitors per month • MySpace = only 50 million unique visitors per month • What happened?
  47. 47. International strategy = key ▫ “Most of Facebook’s growth is international, where they’ve executed on a brilliant strategy for quickly rolling out localized versions of sites by getting their users to do the translation work for them (MySpace, by contrast, expands via a command-and-control infrastructure that puts people on the ground in each new international market).
  48. 48. Facebook growth international • International Growth • More than 70 translations available on the site • About 70% of Facebook users are outside the United States • Over 300,000 users helped translate the site through the translations application
  49. 49. Facebook growth international • International growh = key to winning vs competition • Massive growth in users • Network effect = value of company… leads to more investment…leads to better user experience…leads to more users
  50. 50. Network effect • In economics and business, a network effect (also called network externality) is the effect that one user of a good or service has on the value of that product to other people. When network effect is present, the value of a product or service increases as more people use it. • The classic example is the telephone. The more people who own telephones, the more valuable the telephone is to each owner. This creates a positive externality because a user may purchase their phone without intending to create value for other users, but does so in any case. • Online social networkswork in the same way, with sites like MySpace and Facebook being more useful the more users that join.
  51. 51. Opportunities – why? • The opportunities for international business dealings have grown dramatically as the traditional barriers associated with distance and cross-border transactions have been reduced through new technology and trade negotiations.
  52. 52. Homework for next class Sorry!
  53. 53. 3-questions exercise • Identify at least (1) major problem, (1) major trend, and (1) transferrable idea in: • (a) locally – Recife • (b) locally – Brazil • ( c) globally – some other part of world, or worldwide • Due next week – Maximum 1 page – word document – submit by email to :
  54. 54. Class Schedule: Topics to cover: The “Three Questions” framework • The “three questions” framework 1. “what is the problem,  and what are you going to do about it?”; 2. “What is the trend?  and how are you going to get in front of it?”, 3. “what is great here / somewhere else?  and where else could it work? how are you going to localize it? Where else could you bring this idea and find success?
  55. 55. International IQ moment Great stuff abroad you should know exists!
  56. 56. Barcelona: Sagrada Familia Cathedral
  57. 57. Sagrada Família • Sagrada Família, is a massive, privately- funded Roman Catholic church that has been under construction in Barcelona, Catalonia, Spain since 1882 and is not expected to be complete until at least 2026. • Considered the master-work of renowned Catalan architect Antoni Gaudí (1852–1926), the project's vast scale and idiosyncratic design have made it one of Barcelona's (and Spain's) top tourist attractions for many years.