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SW49: The Worlds of Business in Modern China

William C. Kirby (History; HBS) Time: Mondays & Wednesdays 11AM-12PM Location: Belfer Case Study Room, CGIS South S020 China was home to the worlds largest economy two centuries ago. Two decades from now, it will be the worlds largest economy again. This course invites students to explore the institutions and individuals who have helped to shapeand will shapemodern China and our modern world. Our focus is on businessprivate and public, Chinese and foreignand the institutions that have and will define Chinas economic path and Chinas role in the global economy. These include the family firms that have historically been the foundation of Chinas economy; the stateowned enterprises that came to dominate industry and banking; the large, new private businesses that are challenging the state sector; the Taiwan and Hong Kong firms that are integrating the economy of greater China; and the foreigners, whose visions of the China market have both focused and clouded their vision. A major portion of the course will employ Harvard Business School cases on doing business in modern and contemporary China. These cases focus on individual firms or problems, and they cast light on broader trends: especially on the enduring role of governments (domestic and foreign, national and local) in business and society. For Chinas economic development is not the outgrowth of some systemless globalization, but of a managed internationalization in which nations and states matter critically. There will be no mid-term or final examinations. Instead, students can form groups up to three to prepare a project report. This may take the form of an original case study of a Chinese or foreign firm doing business in China; or of a major contemporary issue with historical antecedents; or other topics approved by the instructor. The report proposal must be presented by mid-term and be completed by the onset of reading period. Preparation and participation will count for 40 percent of the grade; section and two short response papers (book reports) will count for 20 percent; and the final project for 40 percent. There will be a short map quiz in the third week of the term. Enrollment will be capped at the capacity of the classroom. Required books (available for purchase at the Coop): Rob Gifford, China Road (Random House, 2008). Rana Mitter, Modern China: A Very Short Introduction (Oxford University Press, 2008). Richard McGregor, The Party (Harper Collins, 2010).

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Schedule

Part I, JAN 28-30: The Setting of Modern China

1.1 [Jan 28] Lecture/Discussion: Perceptions Background Reading: Rob Gifford, China Road (Random House, 2008). 1.2 [Jan 30] Problems Background Note: Myths and Lessons of Modern Chinese History. Article: "One Companys China Debacle," excerpt from Beijing Jeep by Jim Mann (1989).

Part II, FEB 4-13: China and the Modern World Economy
2.1 [Feb 4] Lecture: Tea, Opium, and the Mutual Addictions of the 19th Century Rana Mitter, Modern China: A Very Short Introduction (Oxford University Press, 2008). 2.2 [Feb 6] The Internationalization and Nationalization of Chinese Business Case study: Rong Family: A Chinese Business History. Report by British Consulate in Beijing on the marriage of private and public companies. 2.3 [Feb 11] Lecture: From Empire to Peoples Republic 2.4 [Feb 13] The Strange World of Chinese Finance Bio: Jimmy Hexter, McKinsey & Co., Beijing. Case study: China Risk Finance: Riding the Wave of Chinas Financial Services Industry.

FEB 18: Presidents Day no class.

Part III, FEB 20-25: The Era of the Peoples Republic

3.1 [Feb 20] Education in Old and New China (President Huangs Visit) Case Study: Xi'an International University: The Growth of Private Universities in China. 3.2 [Feb 25] Lecture: The Catastrophe of Mao Zedong Memorandum of Conversation between Nixon and Mao, in Foreign Relations of the United States, 1969-1972.

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Part IV, FEB 27-MAR6: Starting Over, Starting Up in Post-Reform China

4.1 [FEB 27] Kunshan Case Study: Kunshan, Incorporated: The Making of Chinas Richest Town. 4.2 [MAR 4] From Shanghai to Hong Kong and Back over Six Generations Case Study: Esquel Group: Integrating Business Strategy and Corporate Social Responsibility. 4.3 [MAR 6] Start-ups and the State Case Study: Challenges of Launching a Start-Up in China: Dorm 99.com.

Part V, MAR 11-13: Agricultural Production and Urban Consumption for Chinas New Middle Class
5.1 [MAR 11] Learning to Drink your Milk Case Study: Inner Mongolia Yili Group: Chinas Pioneering Dairy Brand. 5.2 [MAR 13] Let the Chinese People Drink More Wine Case Study: Appellation Shanxi: Grace Vineyard. Preliminary proposal due

MAR 16-24: SPRING BREAK. Richard McGregor, The Party (Harper Collins, 2010).

Part VI, MAR 25-27: The Ethics of Business

6.1 [MAR 25] Microsoft, Google, and the State Article: How Microsoft Conquered China. Case Study: Google in China (A). 6.2 [MAR 27] Commercial Success, Criminal Behavior Case Study: Gome Electronics: Evolving the Business Model. Case Study: Boardroom Battle Behind Bars: Gome Electrical Appliances Holdings -- A Corporate Governance Drama.

Part VII, APR 1-3: State-owned Enterprises and Family Business

7.1 [APR 1] The Infrastructure State Case Study: China Mobiles Rural Communications Strategy. Page 3 of 4

7.2 [APR 3] The Return of Family Business to China Case Study: CP Group: Balancing the Needs of a Family Business with the Needs of a Family of Businesses.

Part VIII, APR 8-10: The Special Role of Taiwan

8.1 [APR 8] Cross-Strait Business, Political, and Cultural Relations Background Note: A Strait of Uncertainty: Taiwans Development in the Shadow of China. Case Study: Taiwan Semiconductor Manufacturing Company Limited: A Global Companys China Strategy. 8.2 [APR 10] The Prospects for the Private Sector Case Study: The China Entrepreneurs Forum. Case Study: Taikang Insurance: Standing Out in Chinas Crowded Insurance Market.

APR 14-20: PREPARATION OF GROUP PRESENTATIONS

Part IX, APR 22-24: China in the World in the Early 21st Century
9.1 [APR 22] China in Africa Case Study: China in Africa: the Case of Sudan. 9.2 [APR 24] China in China, America, and Around the World Case Study: Wanxiang Group: A Chinese Companys Global Strategy.

Part X, APR 29-MAY 1: Conclusions

10.1 [APR 29] GROUP PRESENTATIONS 10.2 [MAY 1] Chinas Future, in the Light of its Past

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