Business and Government Relations (BADM 3102)

Business and Government Relations (BADM 3102)
Spring Semester 2015
Location: Duques 254
Section 12:
Section 15:
3 credit hours
T/TH: 12.45pm to 2pm
T/TH: 2.20pm to 3.35pm
Sanjay Patnaik
Assistant Professor
Department of Strategic Management and Public Policy
The George Washington University School of Business
www.sanjaypatnaik.com
(202)-994-2445
spatnaik@gwu.edu
Funger Hall 615N
Office hours: By appointment
Target audience for the course
Sophomores, Juniors and Seniors as well as exchange students at GWU.
Course description
Whether you are a future manager, policy maker, diplomat, lawyer or employee of an
international organization, understanding the interactions of firms with governments and their broader
business environment is an essential skill that will be invaluable for your professional career. In today’s
dynamic business environment, firms are increasingly engaging with a variety of stakeholders in order to
be successful. In this case-based, full-semester course, we will learn how firms interact with government
actors and other important stakeholders by pursuing an integrated approach to strategic management.
Such an approach combines elements from non-market strategy (e.g. how to successfully engage with
non-market actors such as government regulators or politicians) with concepts from traditional market
strategy (e.g. how to deal with market forces such as competitors).
We will examine a variety of questions at the intersection of business, government and society.
For example, how do companies gain a competitive advantage by successfully shaping their broader
business environment, how do managers play political influence games with stakeholders from multiple
countries and how do firms form alliances with different interest groups? We will cover a variety of
topics including stakeholder engagement, lobbying, political influence games, climate change, emerging
markets, public and private partnerships, business and government relations in different countries, and
sustainable development.
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
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The theoretical and applied concepts taught in the course will be conveyed through the
discussion of business cases and supplemental reading materials. Case studies will include, among
others, the experience of AES in transitioning Georgia, Grupo Bimbo’s international expansion,
Newmont Gold in Fujimori’s Peru, United Fruit’s experience in Guatemala, the WTO dispute between
Bombardier and Embraer, Mercedes-Benz’s PR problems with the Mercedes A-class, NGO activism in
Uganda, international lobbying efforts by the Dow Chemical Company, the development of a gold mine
in Indonesia by Canadian mining company Bre-X, Metro’s challenges in emerging markets, MTV’s efforts
to tackle HIV/Aids and the political economy of climate change and carbon trading.
At the end of the course, students will have a thorough understanding of business and
government in a global setting and will have obtained the necessary tools to craft successful, integrated
firm strategies in diverse institutional and political environments.
Course materials
There is no required textbook for the course. We will use a variety of business cases, book chapters,
articles and news reports in class. Most of the readings will be contained in a course pack that will be
available for purchase through Harvard Business Publishing. Instructions for how to obtain the course
pack will be announced on Blackboard and discussed during the first class. The other readings will be
available directly on Blackboard or handed out in class by the instructor.
Course requirements
The grading scheme is as follows:
(1) Class participation (in-class and online case reaction posts)
(2) Midterm exam
(3) Final team project
30%
25%
45%
Detailed description of each grading component:
(1) Class participation (30%):
a) In-class discussions: The course is designed for a high level of participation among students.
Therefore attendance is mandatory and everyone is expected to engage regularly in the class
discussions. Please come to class well prepared, so that your fellow students can benefit from
your insights. In order to keep the discussions interesting, I will employ a variety of different inclass exercises such as small group discussions, role plays and debates. In addition, I will draw
upon your educational and professional backgrounds by conducting “warm calls” as well as cold
calls. I will evaluate both the quality and the quantity of your in-class contributions for your inclass participation grade.
b) Online case reaction posts: For every class I will post several discussion questions on Blackboard,
which will help you prepare for the in-class discussion. You are required to post a three sentence
case reaction to specifically marked discussion questions on Blackboard by 10 am of the day of
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
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class (no more than five sentences per post). I will also provide a template document to collect
all your case reaction posts throughout the semester. At the end of the term you will have to
submit that document to me. Further instructions for the case reaction posts will be discussed in
the first class and posted on Blackboard.
(2) Midterm exam (25%):
- More details on the midterm exam will be discussed in class and announced on Blackboard.
(3) Final team project (45%):
- As main assignment in this course, you will conduct a team project to apply the analytical
concepts and frameworks we learned in class. You are encouraged to form diverse teams of 5
students (these groups should include students from different programs, countries and
professional backgrounds) for the project. You will then have to choose a recent strategic
problem a company has faced or is facing (that problem should be related to the topics we
covered in class) and conduct a thorough analysis of the issue at hand. The deliverables of the
final team project will include multiple components (more detailed instructions on every
deliverable will be handed out during the semester):
a) Final paper outline (5% of the total grade): 2-3 pages (double spaced), describing the firm
and problem you want to examine. The outline will be submitted to me so that I can let you
know whether you can proceed with your proposal or implement suggested changes.
b) Team presentation (15% of the total grade): At the end of the course, every team will
present their strategic problem and analysis. The presentations will be done in class and be
evaluated based on the level of sophistication of the underlying analysis as well as the
quality of the presentation.
c) Final Paper (25%): After all the team presentations have concluded, your group will have to
submit their analysis as a paper of approx. 20 pages (double spaced). The paper should
contain a detailed description of the problem, sufficient background information and data
(e.g. country-, industry- and firm-overview) as well as an evaluation of several strategic
options the company can implement (including a recommendation on how you think the
firm should proceed).
Classroom expectations (concert rules)
•
•
•
•
Class will start and end on time
Late entry is only permitted under exceptional circumstances
Name cards should be displayed and seats have to be taken according to the seating chart
All phones, laptops, tablets and other electronic devices are to be turned off during class
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
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Course policies
Office hours: In order to facilitate different schedules among students, my office hours are by
appointment. Please just send me an email whenever you would like to meet and we will find a mutually
agreeable time. I encourage you to set up a meeting with me whenever you have questions, concerns or
need help with anything.
Attendance: Attendance is mandatory for all class meetings. Exceptions will be granted for medical or
family emergencies on a case-by-case basis. Students are allowed two unexcused absences per
semester. All additional unexcused absences will negatively impact the grade of a student. In every class,
you are expected to be on time for the start of the session. Tardiness will automatically affect your
grade negatively.
In-class discussions: Learning to contribute positively to a productive discussion is one of the most
essential parts of this class. Therefore you are expected to participate regularly so that the entire class
can benefit from the process. I encourage a very open and free-flowing classroom atmosphere so that
everyone feels comfortable speaking their mind. However, this requires that you show mutual respect
for the opinions of your fellow students and are able to deal with criticism in a constructive manner.
Tardiness of assignments: Assignments are expected to be handed in on time. If students submit an
assignment late, they have to notify me in advance. The grade for the assignment will be affected
negatively for each day it is late. Exceptions for medical or family emergencies will be allowed on a caseby-case basis.
Collaboration: A central element of this class is the team project that you will be conducting with some
of your colleagues. This assignment is intended to foster collaborative skills and enhance your ability to
work in teams. You will be able to form your own teams, but if despite that a problem arises within the
group during the work on the final project, please arrange a meeting with me so that I can help you
resolve any issues. While for the team project you should collaborate as closely as possible, you are not
permitted to collaborate with your colleagues for the preparation of the in-class discussion and the
initial case reaction posts. These have to be entirely your own work. This way I am able to evaluate your
own contributions more accurately.
Academic Honesty and Plagiarism: The George Washington University and I take academic honesty very
seriously and it is important as part of your education to learn how to declare work from others
properly. In addition, the usage of materials from BADM 3201 courses in prior years or from other
professors is not permitted. Similarly, only materials explicitly designated for the preparation of in-class
discussions are allowed (e.g., when preparing a case for class, students are not permitted to use outside
materials or the internet for preparation). Any suspected case of cheating or plagiarism will be reported
immediately. For all the work that you submit, any quotations of external material must be explicitly
noted in the text. Insufficient attribution of external sources will result in the pursuit of formal charges
of plagiarism. If at any point in time you have questions about how to cite work that is not your own or
have any doubts otherwise, please consult with me. Please also refer to GWU’s Code of Academic
Integrity for further information: http://studentconduct.gwu.edu/
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Feedback: I encourage anyone with specific or general questions regarding the course structure, content
or discussions to meet with me or to contact me via email or phone. A few weeks into the semester, I
will also distribute informal evaluation forms to gather detailed feedback from you on the course.
Course Schedule
The following schedule outlines the topics and readings that will be discussed every class. The course
structure will also be posted on Blackboard.
SECTION I: INTRODUCTION
Class 1: Course Introduction
-
Jan. 13, 2015
Discussion of course content and introduction to the field
Class 2: Firms and their Environment I
Jan. 15, 2015
Reading:
-
Baron, David P. “Integrated Strategy: Market and Nonmarket Components.” California
Management Review 37 (2): 47-65 (1995). [Link to reading is posted on Blackboard]
Class 3: Firms and their Environment II
Jan. 20, 2015
Readings:
Background:
-
Baron, David P. “Business and its Environment.” Prentice Hall, New Jersey: 2006, 6th edition.
(only Chapter 1, focus on pp. 1-16). [In course pack]
Case discussion:
-
Henisz, Witold and Bennet Zelner. Power Trip or Power Play: AES-Telasi (A) [Hardcopy will be
distributed in Class 2]
Class 4: Firms and their Environment III
Jan. 22, 2015
Readings continued from Class 3
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
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SECTION II: THE GLOBAL BUSINESS ENVIRONMENT
Class 5: The State of the World Economy
Jan. 27, 2015
Readings:
-
Frankel, Jeffrey. “Globalization of the Economy.” in Joseph S. Nye, Jr. and John D. Donahue,
Governance in a Globalizing World, Brookings Press 2000. [Link to reading is posted on
Blackboard]
-
Rodrik, Dani. “Feasible Globalizations.” in M. Weinstein, ed., Globalization: What’s New?, New
York: Columbia University Press, 2005. [Link to reading is posted on Blackboard]
-
Frieden, Jeffry, Michael Pettis, Dani Rodrik and Ernesto Zedillo. “After the Fall: the Future of
Global Cooperation.” Geneva Reports on the World Economy 14, Center for Economic Policy
Research, July 2012. (pp. 1-18) [Link to reading is posted on Blackboard]
Class 6: Analyzing Different Business Environments
Jan. 29, 2015
Readings:
Background:
-
Ghemawat, Pankaj. Redefining Global Strategy: Crossing Borders in a World Where Differences
Still Matter. Boston, MA: Harvard Business School Press, 2007. (Chapters 1 and 2) [In course
pack]
Case discussion:
-
Grupo Bimbo. (Siegel, Jordan: HBS Case 9-707-521) [In course pack]
Class 7: Business and Government in Emerging Markets
Feb. 3, 2015
Readings:
Background:
-
Khanna, Tarun. “Winning in Emerging Markets: A Roadmap for Strategy and Execution.” Harvard
Business Press, 2010. (Introduction, Chapters 1 and 2) [In course pack]
Case discussion:
-
Metro: Cash and Carry. (Khanna, Tarun and Krishna G. Palepu: HBS case 9-707-505) [In c. pack]
Class 8: Business and the Rule of Law
Feb. 5, 2015
Reading:
-
Newmont in Peru (McMillan, John and Pablo Zoido: Stanford Case IB-51) [In course pack]
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
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Class 9: Government Intervention and Foreign Policy
Feb. 10, 2015
Reading:
-
The Octopus and the Generals: The United Fruit Company in Guatemala (Jones, Geoffrey G. and
Marcelo Bucheli: HBS Case 9-805-146) [In course pack]
Class 10: National Governments and International Organizations
Feb. 12, 2015
Readings:
Background:
-
The WTO Through The Lens of International Regime Theory (Erick Duchesne, Canadian
Department of Foreign Affairs and International Trade, Trade Policy Research Working Paper
#03. (pp. 10-26) [Link to reading is posted on Blackboard]
Case discussion:
-
Bombardier: Canada vs. Brazil at the WTO (Abdelal, Rawi, Laura Alfaro and Brett Laschinger: HBS
Case 9-703-022) (Instructions for obtaining the case will be provided in class)
SECTION III: STAKEHOLDER ENGAGEMENT AND POLITICAL INFLUENCE GAMES
Class 11: Engaging with Stakeholders I
Feb. 17, 2015
Readings:
Background:
-
Baron, David P. "Private Politics." Journal of Economics & Management Strategy (2003): 12 (1):
31-66. [Link to reading is posted on Blackboard]
Case discussion:
-
Mercedes and the Moose Test (A). (Diermeier, Daniel: Kellogg Business Case KEL048) [In course
pack]
-
Mercedes and the Moose Test (B). (Diermeier, Daniel: Kellogg Business Case KEL049) [In course
pack]
Class 12: Engaging with Stakeholders II
Feb. 19, 2015
Readings:
Background:
-
The Power of Activism: Assessing the Impact of NGOs on Global Business (California
Management Review, 45(3):78-101; CMR Reprint 255) [Link to reading is posted on Blackboard]
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
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-
Turning Gadflies into Allies (Michael Yaziji, Harvard Business Review, February 2004, R0402J)
[Link to reading is posted on Blackboard]
Case discussion:
-
International Rivers Network and the Bujagali Dam Project (A) (Esty, Benjamin C. and Aldo Sesia:
HBS Case 9-204-083) [In course pack]
Class 13: Lobbying I
Feb. 24, 2015
Readings:
Background:
-
Note on Lobbying (Oberholzer-Gee, Felix, Libby Cantrill and Patricia Wu: HBS Case 9-707-471) [In
course pack]
Case discussion:
-
International Lobbying and the Dow Chemical Company (A) (Daemmrich, Arthur A.: HBS Case 9710-027) [In course pack]
Class 14: Lobbying II
Feb. 26, 2015
Readings:
Background:
-
The Impact of U.S. Lobbying Practice on the European Business-Government Relationship (David
Coen, California Management Review 41(4): 27-44; CMR Reprint 155) [Link to reading is posted
on Blackboard]
Case discussion:
-
Echelon in Europe (Baron, David P. and Michael Ting: Graduate School of Business, Stanford
University Case P-22) [In course pack]
MIDTERM EXAM
Business and Government Relations – Syllabus: © Sanjay Patnaik 2014
Mar. 3, 2015
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Class 15: Political Influence Games and Corruption
Mar. 5, 2015
Readings:
Background:
-
Corruption and Development (C. Gray & D. Kaufman, Finance & Development, 3/1/98, pp. 7-10)
[Link to reading is posted on Blackboard]
Case discussion:
-
Busang: River of Gold (Bell, Jeffrey, Christine Dinh-Tan, Philip Purnama and Debora L. Spar: HBS
Case 9-798-002) [In course pack]
NO CLASS: Spring break – ENJOY! 
Mar. 10 & 12, 2015
SECTION IV: SOCIAL AND ENVIRONMENTAL ISSUES
Class 16: Ethics and Business Practices
Mar. 17, 2015
Readings:
Background:
-
Foreign Corrupt Practices Act – Layperson’s Guide. Department of Justice publication. [Link to
reading is posted on Blackboard]
Case discussion:
-
Becton Dickinson: Ethics and Business Practices (A) (Paine, Lynn Sharp: HBS Case 9-399-055) [In
course pack]
Class 17: Advancing Policy Goals through Business
Mar. 19, 2015
Readings:
Background:
-
HIV/AIDS worldwide statistics: WHO publication. [Link to reading is posted on Blackboard]
Case discussion:
-
Sex, Drugs, and Rock ‘n Roll: The MTV Approach to Tackling HIV/AIDS (Khanna, Tarun, Sonali R.
Bloom and David E. Bloom: HBS Case 9-709-429). [In course pack]
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Class 18: Climate Change and Emissions Trading I
Mar. 24, 2015
Readings:
-
The Political Economy of Carbon Trading (Reinhardt, Forest, Gunnar Trumbull, Mikell Hyman,
Patia McGrath, Nazli Z. Uludere Aragon: HBS Case 9-710-056) [In course pack]
-
Cleaning up the “Big Dirties”: The Problem of Acid Rain (Buntin, John, Roger Porter and Ribert
Stavins: Harvard Kennedy School Case C15-99-1514.0) [In course pack]
Class 19: Climate Change and Emissions Trading II
Mar. 26, 2015
Readings:
-
Continued from Class 19
Class 20: Sustainable Development and Business Practices
Mar. 31, 2015
Readings:
Background:
-
Sustainability and Competitive Advantage. (Berns, Maurice, Andrew Townend, Zayna Khayat,
Balu Balagopal, Martin Reeves, Michael S. Hopkins and Nina Kruschwitz, MIT Sloan Management
Review Article. Vol. 51 (1): Fall 2009 (SMR327)) [Link to reading is posted on Blackboard]
-
Lubin, David, Amy Longsworth and Randall Russell. “Sustainability Strategy Transforms the
Enterprise.” Harvard Business Publishing Newsletters, November 2011 (B1111A) [In course
pack]
Case discussion:
-
Nestle: Sustainable Agriculture Initiative (Reinhardt, Forest: HBS Case 9-705-018) [In course
pack]
Class 21: Guest lecture – TBD
Apr. 2, 2015
Readings TBD
SECTION V: TEAM PRESENTATIONS AND COURSE WRAP-UP
Class 22: Team Presentations I + Q and A
Apr. 7, 2015
Class 23: Team Presentations II + Q and A
Apr. 9, 2015
Class 24: Team Presentations III + Q and A
Apr. 14, 2015
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Class 25: Team Presentations IV + Q and A
Apr. 16, 2015
Class 26: Team Presentations V + Q and A
Apr. 21, 2015
Class 27: Course wrap-up
Apr. 23, 2015
Make-up day (if needed due to prior class cancellations)
Apr. 28, 2015
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