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FMGD-P13
PGDM 2013-15: Term-IV

Firms, Markets, and Global Dynamics

There will be cap of 50 students in this course. ONLY first 50 ONLINE registrations will be considered.

Indranil Chakrabarti Sheila R Chakrabarti
Email : indranil@ximb.ac.in , vanashram@gmail.com
Email:s-rc@live.com
"Effective executives do not make a great many decisions. They concentrate on what is important. They try to make the few important decisions on the highest level of conceptual understanding"Peter Drucker

As in previous years an assignment is due at the beginning of the course - the details are attached in a separate Word file. 2014-FMGD-Assgnmt-edited.docx

Some other resources towards a more informed choice of the elective:

2014FMGD-SampleEndTermQuestions.doc2014-FMGD-PGP-Fdbk2012-13.xlsxFMGD-PGP_Feedback2005-12.xls

Course Overview & Objectives


Findings from complexity science, a growing inter-disciplinary area, indicate that global business dynamics are among the most complex phenomena. Yet the capacity to anticipate changing realities is a must for the management professional. Our profession, perhaps more than any other profession ever, is also charged with the onus to conceptualise and bring forth new realities.

The elective’s central quest is to facilitate richer intuitions into the non-linear logic of global dynamics, including the ongoing phenomenon of globalization, with the economic institutions, especially the firm, at the core. Global business dynamics, the course suggests, may be seen as the essence of global dynamics itself; especially since the onset of the industrial revolution.

The elective also seeks to deepen the enquiry into the firm, while bringing the other major economic institutions into the framework, viz., goods & services markets, financial markets, nation-states, and international organizations. The enquiry is multi-disciplinary, offering the participants an opportunity to integrate the functional areas towards a more holistic understanding of the evolving realities.

The other objectives of the elective are:
1. To examine the complex dynamics of the principal economic institutions, viz., firms & markets.
2. To examine the systemic forces which influence the drive towards globalisation.
3. To explore the rise and decline of nations, and civilizations.
4. To reckon the newer challenges and prospects for the management profession, as also for the individual professional, given the logic of global business dynamics.
5. To facilitate prettier dreams for tomorrow.

Course Modules

1. Introduction. Basic ideas on chaos, complexity, and complex dynamics; the importance of domain insights, pattern cognition, and logic. The principal institutions in a market economy, with firms at the core. A working definition of globalization, beyond champions and dissidents; focus on the systemic/institutional/design issues. Certain preliminary patterns.

2. Visualizing the principal economic institutions through a quasi-mathematical model. Positive feedback with system configuration change (PFSCC); the explosive characteristic. Industrial Revolution visualized through the PFSCC framework. The centrality of the firm, and especially of a critical set of firms, in a market economy. The resilient constraint and its iterative play; the relentless impetus to invent and innovate; Schumpeter’s creative destruction.

3. An idiosyncratic look at the evolution of the present world order through the complex dynamics of the major economic entities, especially firms, markets, and nations. The precursors to the present pattern of globalization. The key imperatives following World Wars I & II. The newer impetus since the1970s; the special case of the emerging economies. Likely future patterns for the mutating world order.

4. The increased importance of the management profession: the prospects and challenges. Towards an ever nicer world.


Evaluation Plan

Assignment 1 10%
Class Participation 20%
Assignment 2 30%
End Term 40%

Assignment 1 (due as the course starts) is a combined review of any two thematically linked articles from "The Economist" (www.economist.com).

Texts & Periodicals

There is no one comprehensive text for the course. The following three, taken together, would be representative:

1. Penrose, Edith (1995) The Theory of the Growth of the Firm Oxford University Press
2. Beinhocker, Eric (2006) The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics Harvard Business School Press
3. Brakman, Steven et al (2006) Nations & Firms in the Global Economy Cambridge University Press

Background material would be provided for each session.

Some other useful books for the course – a combine of contemporary and classic – would be:

Anderson, Per W., K. Arrow, and D. Pines, (Eds.) (1988) The Economy as an Evolving Complex System I. SFI Studies in the Sciences of Complexity, Addison Wesley
Arthur, Brian, S. N. Durlauf, and D. A. Lane, (Eds.) (1997) The Economy as an Evolving Complex System II. SFI Studies in the Science of Complexity, Addison Wesley
Blume, L.E and S. N. Durlauf (Eds.) (2006) The Economy as an Evolving Complex System III. SFI Studies in the Sciences of Complexity, Oxford University Press
Canterbery, Ray E. (2001) A Brief History of Economics World Scientific
Chandler, Alfred (1977) The Visible Hand Harvard Univ Press
Chernow, Ron (1990) The House of Morgan Atlantic Monthly Press
Coates, David (2000) Models of Capitalism: Growth and Stagnation in the Modern Era Polity Press
Colander, David (2000) The Complexity Vision: The Teaching of Economics Cheltenham: Elgar
Crafts, Nicholas & G. Toniolo (1996) Economic Growth in Europe Since 1945 Camb Univ Press
Dine, Janet (2000) Governance of Corporate Groups Camb Univ Press
Drucker, Peter (1989) New Realities Butterworth Heinemann
Drucker, Peter (1993) The Concept of the Corporation Transaction Publishers
Drucker, Peter (2002) Management Challenges for the 21st Century Butterworth Heinemann
Drucker, Peter (2003) Managing in the Next Society Butterworth Heinemann
Ferguson, Niall (2008) Empire Penguin Group (Australia)
Ferguson, Niall (2009) The Ascent of Money Penguin
Friedman, Thomas (2000) The Lexus and the Olive Tree Random House
Friedman, Thomas (2005) The World is Flat Penguin
Fukuyama, Francis (1992) The End of History Penguin
Geisst, Charles (1997) Wall Street: A History OUP
Gell-Mann, Murray (1994) The Quark & the Jaguar: Adventures in the Simple & Complex Abacus
Greider, William (1998) One World Ready or Not Simon & Schuster
Haywood, John (2001) The Cassell Atlas of World History Cassell
Hobsbawm, Eric (1989) Age of Capital: 1848 – 1875 Vintage
Hobsbawm, Eric (1996) Age of Empire: 1875 – 1914 Vintage
Jones, Geoffrey (1996) Evolution of International Business Routledge
Jones, Geoffrey (2000) Merchants to Multinationals OUP
Kennedy, Paul (1987) Rise and Fall of the Great Powers Random House
Keylor, William (2001) The Twentieth Century World: An International History OUP
Korten, David (2001) When Corporations Rule the World Kumarian Press
Maddison, Angus (2001) The World Economy: A Millennial Perspective OECD
Marx, Karl (1992) Das Capital Penguin Classics
Moore, Barrington, Jr. (1993) Social Origins of Dictatorship & Democracy Beacon Press
Myrdal, Gunnar (1968) Asian Drama Pantheon
Perkins, John (2006) The Confessions of an Economic Hit Man Plume
Polanyi, Karl (1971) The Great Transformation Beacon PressFMGD-PGP_Feedback2005-12.xls
Pomeranz, Kenneth (2001) The Great Divergence Princeton Univ Press
Robins, Nick (2006) The Corporation that Changed the World Orient Longman
Schumpeter, Joseph (1950) Capitalism, Socialism and Democracy Harper Brothers
Shiller, Robert (2001) Irrational Exuberance Broadway
Shutt, Harry (1998) The Trouble with Capitalism Zed Books
Smith, Adam (2003) The Wealth of Nations Bantam Classics
Soros, George (2004) Crisis of Global Capitalism Viva Books
Soros, George (2004) George Soros on Globalization Viva Books
Sri Aurobindo (1999) The Ideal of Human Unity Sri Aurobindo Ashram Pub Dept.
Stiglitz, Joseph (2006) Making Globalization Work Penguin
Tedlow, Richard (1990) New & Improved. The Story of Mass Marketing in America Basic Books

The Economist, the London weekly, which conservatively calls itself a newspaper, would be of special interest for the course. Both the assignments are based on The Economist. It is perhaps the oldest chronicler, so to say, of global business dynamics and global dynamics in general, with an uninterrupted record of more than 160 years. It is also, arguably, the most influential periodical in the world, both, amongst practitioners and the academia. The course, however, would discourage uncritical acceptance of any view, irrespective of the source. Other business/economic publications would also be useful for news and views, viz., Financial Times, Wall Street Journal, Business Week, New York Times, Asia Times (Online), etc. For a position significantly away from The Economist, towards a richer balance, one may consider the much awarded website, www.globalresearch.ca



Created By: Alora Kar on 03/03/2014 at 12:05 PM
Category: BM-II Doctype: Document

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