THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

(ESTD 1973)

HYDERABAD

GLOBAL OPPORTUNITIES

AND

THREAT ANALYSIS

REPORT

SUBMITTED BY:

NAME: THONDURU PRASANTH REDDY

BATCH: PGP/FW/10-12/IIPM

COUNTRY VISITED: TEXAS, US

ACKNOWLEDGMENT

This report could not have been accomplished without the splendid support of

my friends & colleagues. I would like to Thank IIPM, in giving me an

international experience & learning by taking me to USA. I would like to thank

PROF. GANESH SHUKLA who led us all through the GOTA & in giving me an

opportunity to make a report on the GOTA we had. Special thanks to my

friends who helped me to complete this report. Last but not least I would like

to thank god for helping & aiding me to make this report a success.

INDEX

ABSTRACT

INTRODUCTION

USA- AN OVERVIEW

TEXAS – AN OVERVIEW

MC COMBS BSCHOOL – AN OVERVIEW

STRATEGIC MANAGEMENT

NEGOTIATIONS

ADVERTISING AND NEW MEDIA

LEADING INNOVATION

ACCOUNTING AND FINANCE

LEADING HIGH PERFORMANCE TEAMS

ENTREPRENEURSHIP

BUILDING YOUR LEADERSHIP BRAND

CONCLUSION

BIBILIOGRAPHY

ABSTRACT

As a part of our GOTA program we visited Texas, US. The GOTA organized by

IIPM provided us with an opportunity of visiting Texas, through which we

learned about the foreign education & work culture.

This report gives an overview of the importance of GOTA

program and information about the different topics which were discussed in

the seminars. The report gives an insight about the learning and experience of

the sessions and the stay in Texas, US.

GLOBAL OPPOURTUNITY AND THREAT ANALYSIS

The Global Opportunities & Threat Analysis (GOTA) Program brings awareness

of how a truly global economy works and also offers a different perspective to

the participants making them receptive to entrepreneurial learning.

The trip was not totally academically oriented and also involved a couple of

days of sightseeing with visits to the popular tourists’ hot spots and major

cities in US. We had a learning experience of immigration, food adjustment,

crossing language and cultural barriers, weather extremities, etc.

GOTA is designed to give students a firsthand exposure to International

Faculty, organizations & economies. The idea to make the students aware of

how a truly global economy works and also to bring a fresh outlook to life

conductive to entrepreneurial learning.

INTRODUCTION

USA- AN OVERVIEW:

The United States of America (also referred to as the United States, the U.S.,

the USA, or America) is a federal constitutional republic comprising fifty

states and a federal district. The country is situated mostly in central North

America, where its forty-eight contiguous states and Washington, D.C.,

the capital district, lie between the Pacific and Atlantic Oceans, bordered

by Canada to the north and Mexico to the south. The state of Alaska is in the

northwest of the continent, with Canada to the east and Russia to the west

across the Bering Strait. The state of Hawaii is an archipelago in the mid-

Pacific. The country also possesses several territories in the Caribbean and

Pacific. At 3.79 million square miles (9.83 million km2) and with over 310

million people, the United States is the third or fourth largest country by total

area, and the third largest both by land area and population. It is one of the

world's most ethnically diverse and multicultural nations, the product of large-

scale immigration from many countries. The U.S. economy is the world's

largest national economy, with an estimated 2010 GDP of $14.780 trillion

(23% of nominal global GDP and 20% of global GDP at purchasing power

parity).

The United States is a federal union of fifty states. The original thirteen states

were the successors of the thirteen colonies that rebelled against British rule.

Early in the country's history, three new states were organized on territory

separated from the claims of the existing states: Kentucky from Virginia;

Tennessee from North Carolina; and Maine from Massachusetts.

Most of the other states have been carved from territories obtained through

war or purchase by the U.S. government. One set of exceptions

comprises Vermont, Texas, and Hawaii: each was an independent republic

before joining the union. During the American Civil War, West Virginia broke

away from Virginia. The most recent state—Hawaii—achieved statehood on

August 21, 1959. The states do not have the right to secede from the union.

The United States leads the world in scientific research papers

and impact factor. The country is the primary developer and grower

of genetically modified food, representing half of the world's biotech crops.

The United States is also a leader in medical innovation. In 2004, the

nonindustrial sector spent three times as much as Europe per capita on

biomedical research. Today, the bulk of research and development funding –

64% – comes from the private sector.

Americans possess high levels of technological consumer goods, and almost

half of U.S. households have broadband Internet access.

American public education is operated by state and local

governments, regulated by the United States Department of

Education through restrictions on federal grants. Children are required in most

states to attend school from the age of six or seven

(generally, kindergarten or first grade) until they turn eighteen (generally

bringing them through twelfth grade, the end of high school); some states

allow students to leave school at sixteen or seventeen. About 12% of children

are enrolled in parochial or non-sectarian private schools. Just over 2% of

children are homeschooled.

The United States has many competitive private and

public institutions of higher education.

According to prominent international rankings, 13 or 15 American colleges and

universities are ranked among the top 20 in the world. There are also

local community colleges with generally more open admission policies, shorter

academic programs, and lower tuition.

Of Americans twenty-five and older, 84.6% graduated from high school, 52.6%

attended some college, 27.2% earned a bachelor's degree, and 9.6% earned

graduate degrees. The basic literacy rate is approximately 99%. The United

Nations assigns the United States an Education Index of 0.97, tying it for 12th

in the world.

The United States is a multicultural nation, home to a wide

variety of ethnic groups, traditions, and values. Aside from the now

small Native American and Native Hawaiian populations, nearly all Americans

or their ancestors immigrated within the past five centuries. The culture held

in common by most Americans—mainstream American culture—is a Western

culture largely derived from the traditions of European immigrants with

influences from many other sources, such as traditions brought by slaves from

Africa.

More recent immigration from Asia and especially Latin America has added to

a cultural mix that has been described as both a homogenizing melting pot and

a heterogeneous salad bowl in which immigrants and their descendants retain

distinctive cultural characteristics.

AUSTIN, TEXAS

Austin is the capital city of the U.S. state of Texas and

the seat of Travis County. Located in Central Texas on the eastern edge of

the American Southwest, it is the fourth-largest city in Texas and the 14th most

populous city in the United States. It was the third-fastest-growing large city in

the nation from 2000 to 2006. Austin has a population of 790,390 (2010 U.S.

Census). The city is the cultural and economic centre of the Austin–Round

Rock–San Marcos metropolitan area, with a population of over 1,716,291

(2010 U.S. Census), making it the 35th-largest metropolitan area in the United

States.

"Keep Austin Weird" has become a local motto in recent years, featured

on bumper stickers and t-shirts. This motto has not only been used in

promoting Austin's eccentricity and diversity, but is also meant to bolster

support of local independent businesses. According to the 2010 book, Weird

City, the phrase was begun by a local Austin Community College librarian, Red

Wassenich, and his wife, Karen Pavelka, who were concerned about Austin's

"rapid descent into commercialism and over-development." The slogan has

been interpreted many ways since its inception, but remains an important

symbol for many Austinites who wish to voice concerns over rapid growth and

irresponsible development. Austin has a long history of vocal resistance to

development projects that degrade the environment and threaten the local

cultural landscape.

According to the Nielsen Company, adults in Austin read and contribute to

blogs more than those in any other U.S. metropolitan area. Austin residents

have the highest internet usage in all of Texas.

Austin was selected as the No. 2 Best Big City in "Best Places to Live"

by Money magazine in 2006, and No. 3 in 2009, and also the "Greenest City in

America" by MSN.

According to Travel & Leisure magazine, Austin ranks No. 1 on the list

of cities with the best people, referring to the personalities and attributes of

the citizens.

SoCo is a shopping district stretching down South Congress Avenue from

Downtown. This area is home to coffee shops, eccentric stores, restaurants

and festivals. It prides itself on "Keeping Austin Weird", despite development

surrounding the area.

Museums in Austin include the Texas Memorial Museum, the Blanton

Museum of Art (reopened in 2006), the Bob Bullock Texas State History

Museum across the street (which opened in 2000), the Austin Museum of

Art (AMOA), and the galleries at the Harry Ransom Center. The Texas State

Capitol itself is also a major tourist attraction. The Driskill Hotel built in 1886,

and located at 6th and Brazos, was finished just before the construction of the

Capitol building. Sixth Street is a musical hub for the city. The Enchanted

Forest, a multi-acre outdoor music, art, and performance art space in South

Austin hosts events such as fire-dancing and circus-like-acts. Austin is also

home to the Lyndon Baines Johnson Library and Museum, which houses

documents and artifacts related to the Johnson administration, including LBJ's

limousine and a recreation of the Oval Office.

Researchers at Central Connecticut State University ranked Austin

the 16th most literate city in the United States for 2008. The Austin Public

Library operates the John Henry Faulk Library and various library branches.

In addition, the University of Texas at Austin operates the seventh-largest

academic library in the nation.

Austin was voted "America's No.1 College Town" by the Travel Channel. Over

43 percent of Austin residents age 25 and over hold a bachelor's degree, while

16 percent hold a graduate degree. As of 2009, greater Austin ranks eighth

among metropolitan areas in the United States for bachelor's degree

attainment with nearly 39 percent of area residents over 25 holding a

bachelor's degree.

Austin is home to The University of Texas at Austin, the flagship

institution of the The University of Texas System with over 38,000

undergraduate students and 12,000 graduate students. In 2010, the university

was ranked 45th among "National Universities" (13th among public

universities) by U.S. News and World Report. UT has annual research

expenditures of over $640 million and has the highest-ranked business,

engineering, and law programs of any university in the state of Texas.

McCombs School of Business

The McCombs School of Business also referred to as the McCombs School or

simply McCombs, is a business school at The University of Texas at Austin. In

addition to the main Austin campus, McCombs offers classes outside Central

Texas in Dallas, Houston and internationally in Mexico City. The McCombs

School of Business offers undergraduate, masters, and doctoral programs for

their average 6,000 students each year, adding to its 85,000 member alumni

base from a variety of business fields. In addition to traditional classroom

degree programs, McCombs is home to 14 collaborative research centers, the

international business plan competition MOOT Corp, and executive

education programs. The McCombs School of Business consistently ranks

among the top business schools in the nation, the majority in the top 10 and is

the oldest public business school in Texas.

The University of Texas at Austin (UT Austin) was

founded in 1883, and the university's School of Business Administration was

established a few decades later in 1922. The school quickly grew, establishing

a Master of Professional Accounting program in 1948 and offering its first

executive education programs in 1955.

Effects of the 1990s technology boom and dot-com bubble were

palpable in Austin, leaving the nickname "Silicon Hills" on the city. One

McCombs School program that has capitalized on this is the Moot Corp, which

is now the oldest operating inter-business school new-venture competition in

the world. Begun in 1984, it has been dubbed the "Super Bowl of world

business plan competitions."

Also opportunistic was the creation of the school's first Management

Information Systems degree in 1990. The MBA Investment Fund, LLC was also

founded in 1994, becoming the first legally constituted investment fund run by

Master of Business Administration (MBA) students and proving quite

successful, with a 17.5 percent annual return to date. Additionally, in 1995 the

college became the first to require students have an e-mail address.

On May 11, 2000, businessman Red McCombs announced

a $50 million donation to UT Austin. In his honour, the College of Business

Administration and the Graduate School of Business were merged under the

newly created Red McCombs School of Business.

The McCombs School of Business is located in the heart

of The University of Texas at Austin campus. The majority of the McCombs

School is housed in a three-building complex called the George Kozmetsky

Centre for Business Education named after, philanthropist and former College

of Business Administration dean, Dr. George Kozmetsky at the intersection of

21st and Speedway Streets. The McCombs School is bordered by Waggener

Hall (the former home of the College of Business Administration) to the

North, Gregory Gymnasium, and E. P. Schoch Building (one of the last overseen

by campus master planner Paul Cret) to the East and is adjacent to Perry-

Castañeda Library to the South.

In March 1976, Graduate School of Business Building

opened next to the existing building facing 21st Street. Since its inception, the

addition to the College of Business Administration Building houses the

separate graduate MBA program. The addition was constructed in a rhombus

shape to protect a grove of trees on the north side of the building.

Located on the southwest corner of the UT campus, the AT&T Executive

Education and Conference Centre are a multi-function complex and hotel. The

facility has multiple sized classrooms and breakout rooms, a 300-seat

amphitheatre, ballroom, three restaurants, and 297 hotel rooms. The centre

hosts all of the executive education programs for the McCombs School,

including the Texas Executive Education and evening MBA programs. It's the

first building to be built to the U.S. Green Building Council’s LEED Silver

certification standards on campus.

McCombs is made up of a total of 5,984 students,

4,318 undergraduates, 1,569 postgraduate, and 97 doctoral students. All

undergraduates classes are at the main campus in Austin while almost a

quarter of postgraduate student classes are held outside of Central

Texas in Dallas, Houston, and Mexico City.

In addition to traditional graduation routes,

McCombs offers a five year program where students earn their BBA

and Master in Professional Accounting (MPA) degrees concurrently. The Texas

Business Foundations Program (Texas BFP) offers non-business majors the

opportunity to grasp the fundamentals of business operations and minor in

business while pursuing any undergraduate program at the University of Texas

at Austin.

Students in the Business Foundations Program take seven

business courses (two lower-divisions and five upper-divisions) in addition to

their existing undergraduate course work. Students who complete the program

are capable of integrating their major into future their career.

The McCombs School of Business awards the degrees of Bachelor of Business

Administration (BBA), Master of Business Administration (MBA), Master in

Professional Accounting (MPA), Master of Science in Technology

Commercialization (MSTC), Doctorate of Philosophy (PhD), as well as

certificates upon completion of non-degree Executive Education programs.

Programs awarding doctoral degrees at the McCombs School of Business are

divided in five academic departments, Accounting, Finance, Information, Risk,

and Operations Management (IROM), Management, and Marketing. A sixth

department, Business, Government and Society, was created in 2010 and does

not award a doctoral degree.

STRATEGIC MANAGEMENT

-Dr. Jim Fredrickson

Chair, Department of Management

Tom E. Nelson Regents Professor of Business

STATEMENTS OF STRATEGY:

1) Our strategy is to be the low cost provider.

2) Our strategy is to provide unrivalled customer service.

STRATEGY:

Central connect of how we will achieve our objectives

Recognition of an opportunity and plan for seizing it

FIVE MAJOR ELEMENSTS OF STRATEGY:

1) Arenas

2) Vehicles

3) Differentiators

4) Staging

5) Economic logic

DELLS DIAMOND STRATEGY:

Arenas: Desktop Pcs (64%), Laptops (23%), Servers/Storage (13%)

Lca, Pad, Hsb... Etc

Vehicles: Primary internal growth.

Partner with technology providers.

Differentiators: Customer service

Staging: Develop us small business market.

Expand to large us corporate market.

Expand globally.

Economic logic: Price leverage

Cost leverage

CONCLUSIONS FROM DELL IN CHINA:

1) Org strategy is not anything us wants it to be.

2) To think about and communicate a strategy constructively, to identify,

develop or evaluate it, we need an operational framework.

3) The Diamond Strategy is one such framework.

NEGOTIATIONS

- JOHN W. BURROWS

Director, Texas Executive MBA Program

Faculty, Department of Management

Negotiation:

It’s a decision making process by which two or more people agree how to

allocate scarce resources.

Dangerous approaches:

The born negotiator

The expert negotiator

The intuitive negotiator

NEGOTIATION SKILLS:

Planning

Claiming gains

Creating value

John’s top 5 pithy tips

1. Plan., plan, plan systematically

2. Develop your BATNA

3. Ask and listen more, talk less

4. Search for quality agreements

5. Move up the learning curve.

ADVERTISING AND NEW MEDIA

-Dr. MATTHEW S. EASTIN

(Associate Professor)

PhD, Michigan State University

MA, University Of Nebraska-Lincoln

BA, University Of Michigan, 1961

Advertising:

Advertising is a major tool in the marketing of products, services and ideas.

Advertising and communication:

Through media - to many

Through media - one

Consumer - consumer

5 AREAS OF EMPHASIS:

Markets

Media

Messages

Money

Measurement

Media Outlets:

Traditional Media

Newer Media

Search engine optimization

Social Networking

Mobile Advertising

Gaming

All media represent tools for advertisers

Media Powers:

Gate-keeping and Agenda-Setting

Barriers to Entry

Regulation and Economics

Content for Mass Audiences

Limited Consumer Power

Content Creation

Consumption

LEADING INNOVATION

-Dr. Luis Martins

PHP, New York University, 1997

MPhil, New York University, 1995

Innovation:

Innovation as an outcome: A novel, useful and implemented idea

Innovation as a process: Generation, adoption, development, and

implementation of a new idea.

Types of innovation:

Product v/s process

Racial v/s incremental

Architectural v/s component

Disruptive

The Innovation process: Divergence and Convergence

Divergence: Expanding the surface area for innovation

Convergence: Integrating ideas into focused themes

Innovation through Design Thinking: Take-Aways

- Need to understand the customer, product, product, process etc

- Pay attention to divergence and convergence

- Effective brainstorming is an acquired skill

- Design thinking can be applied broadly- to products, processes, services, etc.

ACCOUNTING & FINANCE

-Prof. Jim Nolen

Distinguished Senior Lecturer

Department of Finance

Accounting’s Role:

- To provide internal and external information about the past performance to

company executives and investors

- This information is communicated in financial statements

Balance sheet

Statement of shareholders equity

Income statement

Statement of cash flows

Accountants are responsible for reporting, controlling and budgeting

activities.

Finance’s Role:

To analyse information about the past to make investment, financing and

operating decisions that make company performance in the future

Investment decisions to maximize return and includes: make v/s buy

decisions, working capital management, treasury operations and asset

acquisitions and diversities

Financing decisions to minimize the cost of capital and includes: debt v/s

equity financing and dividend policy

Operating decisions that improve efficiencies and includes: pricing and

product mix, purchasing and supply chain decisions, controlling expenses and

risk management.

LEADING HIGH PERFORMANCE TEAMS

- Dr. ETHAN BURRIS

Assistant Professor of Management

Team:

Essential discipline

Small group with complementary skills

Summated to shared purpose and performance goals and common

approach

Hold each other accountable

Key lessons:

Behavioural

Cognitive

Motivational and emotional

Advantages of group decision making:

More knowledge

Increased "buy in" - commitment to decision

Increased understanding of decision

Disadvantages of group decision making:

Pressure to confirm

Dominant members

Push toward extreme views

Time and effort

ENTREPRENUERSHIP

-JOHN N. DOGGETT

Senior Lecturer

Department of Management

How venture capital works?

VC companies raise $ from pension funds, insurance companies, institutional

investors and wealthy individuals

General and limited partners

Venture funds have 10 yr life

All funds invested in 3-5 years

ROI = $10 for every $1 invested

Must exit investments in 3-6 years

Deals that excite VC's:

Massive customer pain

Large growing market > 1,000,000,000.

Revolutionary or evolutionary solution

10 market share by year 5

Team of industry experts

Cash flow positive by year 2

10x return on $1 of cash by year 5

How VC’s make $:

VC's firms live on 2% management fee

VC firms must return 100% of original investment before sharing in profit

VC partners get rich on their "carry" or "carried interest"

Carry= 20% of profit above original investment

VC firms have very few partners & staff

Funding Stages & Terms:

These Terms are the same

Stage

Series

Round

Raise

Business Idea and No Plan

Seed Stage

Early Stage

Stages, continued

Business plan

Functioning company and prototype

Growing company and preparing for IPO

Signs of trouble

BUILDING YOUR LEADERSHIP BRAND

-Dr. JOHN DALY

University Distinguished Teaching Professor

Understanding the Brand Name:

What is a Brand?

Familiar: We immediately recognize the brand

Attention: We pay more attention to the brand

Preferable: Given a choice we select the brand

Cachet: They give us status

Quality: We perceive the brand to be high quality

Dependable: We trust products using the brand

Valued: We willingly pay more for the brand

Extendable: we accept and buy new products us that fit the brand name

CHALLENGES IN GLOBAL MARKETING:

Changing socio-politics

Changing demographics

Changing economics

Changing environment

Building Affinity:

Always Deliver More than Others Expect

The Key Formula:

Delivered

Effectiveness = _______________

Expected

Possible Ranges: < 1.0

= 1.0

> 1.0

Social Effectiveness:

Stay Attentive and Responsive

A. Act Attentive

B. Show Responsiveness

CONCLUSION

The United States is a multicultural nation, home to a wide

variety of ethnic groups, traditions, and values. Aside from the now

small Native American and Native Hawaiian populations, nearly all Americans

or their ancestors immigrated within the past five centuries. The culture held

in common by most Americans—mainstream American culture—is a Western

culture largely derived from the traditions of European immigrants with

influences from many other sources, such as traditions brought by slaves from

Africa.

The McCombs School of Business is located in the heart of The University

of Texas at Austin campus. The McCombs School of Business also referred to as

the McCombs School or simply McCombs, is a business school at The

University of Texas at Austin. In addition to the main Austin campus, McCombs

offers classes outside Central Texas in Dallas, Houston and internationally

in Mexico City.

The McCombs School of Business awards the degrees

of Bachelor of Business Administration (BBA), Master of Business

Administration (MBA), Master in Professional Accounting (MPA), Master of

Science in Technology Commercialization (MSTC), Doctorate of

Philosophy (PhD), as well as certificates upon completion of non-

degree Executive Education programs.

BIBILIOGRAPHY

GOTA Handbook

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/Texas

http://en.wikipedia.org/wiki/McCombs_School_of_Business