Entering and Competing in Emerging Markets A Session for the Fall 2007 UNICON Conference Facilitated by: Ron Bendersky Melanie Barnett

Headlines… Rutgers Starts EMBA In Singapore Kenan-Flager And Tsinghua Open Center For Logistics In Beijing China CEO Program At Columbia Kellogg Expands To Miami Rutgers Starts EMBA In Singapore INSEAD Opens Office In New York IESE Opens Office In New York Tsinghua-INSEAD Launch EMBA Harvard Exec-Ed Goes To Hyderabad Oxford and Confederation of Indian Industry Establish an India Business Centre Tepper School Of Business At Carnegie Mellon Takes Exec-Ed To Qatar INSEAD Opens Abu Dhabi Exec-Ed Centre

University of Michigan in Asia

University of Michigan and Asia 1870s: First students from Japan include Toyama Masakazu, who becomes President of Tokyo Imperial University and Minister of Education. His 1886 U-M honorary degree is the first ever given to a citizen of Japan by an American university. 1880-81: U-M President James Angell serves as U.S. Minister to China. 1899-1913: U-M biology professor Dean Worcester serves as member of the U.S.-Philippine Commission, and then as U.S. Secretary of the Interior for the Philippines.

Frank Murphy 1890-1949 Harbor Beach, Michigan University of Michigan BA 1912, LLB 1914 Governor-General of the Philippines 1933-35 High Commissioner to the Philippines 1935-36 Governor of Michigan, 1937-39 Attorney-General of the U.S., 1939-40 U.S. Supreme Court Justice, 1940-49

Michigan Executive Education’s Global Presence PCC’s current situation: Rapid growth through M&A Many new capabilities have been gained through this process Leading to huge new potential for competitive advantage More critical than ever that: The management team is aligned around the strategy & performance goals They work together exceedingly well as a team They have the individual leadership and management competencies to create and sustain the competitive advantage and lead PCC into the future. PCC has done a great job of identifying the key competencies in its leadership team. We believe we have captured them here. Go through bullets for Exec 1 – ask for further input from PCC. Then do Exec. 2. Transition: We can’t know yet exactly what the initiative will look like, so we have a process to help us get there.

Decisions and Issues Institutional support Location(s) Infrastructure Brand Pricing (and the other 3 P’s, too) Partners Faculty Staff Marketing & sales Operations

Entry Strategies Go it Alone Single Academic Partnership Multiple Academic Partnership Corporate Consortium Non-Academic Partnership Broker Model Others?

Going it Alone: Pros Cons Avoid entanglements inherent in partnerships No revenue split Complementary knowledge, skills, capabilities, brand Cons Risk No gains from what partner would bring to the table

Academic Partnership: Pros Shared risk Gains in knowledge, capabilities, brand, etc., from the partner(s) Cons Revenue split Difficulties, delays associated with partnerships Requires partnership management resources “Partner” risk

Corporate Consortium: Pros Once established, a ready set of customers Deeper, longer-lasting relationships Cons Difficult, time-consuming, and resource-intensive to establish Difficult, time-consuming, and resource-intensive to maintain/manage

Non-academic partnership Pros Can select a wealthy partner (with “deep pockets” for advertising and marketing) Partner’s local market expertise Cons Profit-driven partner’s mission may be incongruent with yours Partner provides no faculty resources Possible negative image / branding impact

Broker Model Pros Cons Choose “best of the best” faculty Faculty will have local knowledge No complicated partnership to manage Cons Feasibility “Faculty” loyalty Cost Effect on brand equity (may be neutral)

Going global expands your brand but The cost is high Final Thoughts Going global expands your brand but The cost is high Expenses Opportunity costs BUT What’s the cost of not going?