Module Code and Title:      MGT306 Managing Business-Government Relations

Programme:                                      Bachelor of Business Administration

Credit Value:                                     12

Module Tutors:                                 Shreejana Pradhan, Enchu Lhamo,Dip Raj Pradhan,Kezang Wangchuk,Carl Wonder,Priyanka Sharma,Jeroen Uittenbogaard

Module Coordinator:                        Carl Wonder

General Objective: This module aims to provide students with an understanding of key issues and processes concerning the interaction of business with government by pursuing an integrated approach to strategic management. It will enhance students’ ability to think analytically about the ways in which government and business interact with one another in an economy, and prepares them to adapt to government policies affecting different types of businesses.

Learning Outcomes – On completion of the module, students should be able to:

1. Discuss how business and government are organized and how they seek to influence one another
2. Analyse national economic policies in an increasingly integrated global economy
3. Analyse different relationships between governments and businesses
4. Assess the impact of government regulation on a business and its competitors
5. Explain how government policies will affect the competitive positions of individual firms and industries
6. Explain how firms and industries react to influence government policies
7. Measure the impact of government support for (and restraints on) a business, and propose plans accordingly which would benefit the business
8. Explain any changes in government policies toward business generally, e.g. the “ease of doing business”
9. Review the ways in which government policies affect economic growth and the ways in which governments seek to achieve a variety of noneconomic objectives through tax and other policies
10. Analyse and appraise how business organizations influence the Government

Teaching and Learning Approach:

Assessment Approach:

A. In-Class Exercises: Portion of Final Marks-10%

Each student will complete two in-class analyses (5% each) of 400 words on business problems concerning types of business responses and effects of change in government policies. These will be based on specific case topics provided to students in advance.

1%       identifying the problem

2%       analysis approach, referring subject matter covered in the module

2%       drawing effective action-oriented conclusions

B. Case Studies: Portion of Final Marks-15%

Each student will complete 3 in class case studies (5% each) report of 400 words, based on the analysis of the given case.

1.5%    defining the business problem presented in the case

2%       presenting the findings

1.5%    answering questions based on the presentation

C. Group Project Report and Presentation: Portion of Final Marks-25%

Students select and analyse business problems related to the corporate world’s relation to government in groups of 4. The paper will be approximately 2500 words, and include problem definition, data, analysis, conclusions and references. The group presentation will be approximately 10 minutes, and include slides. 

Project report (Group):

5%       clear definition of the issue/problem

4%       appropriate methods of data gathering and analysis tools

6%       effective business action conclusions

Project Presentation (Individual):

5%       language fluency, subject content, body language, class Q&A

5%       process score based on contribution to group output

D. Class Participation: Portion of Final Marks-5%

Each student will contribute to class discussions by answering questions, listening to the contributions of others, and stating their opinions and thoughts on the relationship between the business world and the government with the class. 

3%       contributing to class discussion

2%       listening to and responding logically to the viewpoints of others

E. Midterm Examination: Portion of Final Marks-15%

Students will take a written exam of 2-hour duration covering topics up to the mid-point of the semester.

F. Semester-end Examination: Portion of Final Marks-30%

The module will have a semester-end exam for 2 hours covering the entire syllabus. The question will be divided into two parts – Part A (carrying 40% of the exam weightage) will be mostly of short answer including objective questions. Part-B (carrying almost 60% of the exam weightage) will be mostly of essay type or an extended response to the given question. This part of the question requires students to apply, analyse, and evaluate or construct knowledge and skills. Cases will also be used to test the levels of knowledge.

Pre-requisites: MGT101 Introduction to Business Environment, BLT101 Legal Considerations in Business

Subject Matter:

1. Overview of the Business Environment: Impact of Government Policies on Business
   • The role of government
     • Regulatory view
     • Business in partnership with government in addressing societal and economic matters
   • Factors affecting the internal and external environment of an organization
   • Analyzing different business environments
   • Business and government in emerging markets
   • Sustainable development and business practices
     • Lobbying
     • Impact of lobbying practice
     • Private politics
     • Ethics and business practice
     • Climate change and business practice
     • Competitive advantage and sustainability

2. Complementary Relations between Government and Business
   • Impact of government on business
     • Incentives
     • Technical assistance
     • Market assurance
     • Business promotion
     • Institutional support: Trade unions, chambers of commerce, trade associations such as the Association of Bhutanese Industries
   • Impact of business on government
     • Generation of employment
     • Tax
     • Contribution of forex
     • Import substitution

3. Engaging with Stakeholders
   • Customers
   • Government/regulators
   • Employees
   • Investors
   • Suppliers
   • Others:
     • Media
     • Non-governmental organizations
     • Organized labour

4. Business’s Interaction with Governments
   • Attitude towards governments
     • Opportunists
     • Avoiders
     • Partners
     • Reluctant engagers
     • Adversaries

5. Impact of Government Policies on Business
   • The Role of government
     • Regulatory view
     • Factors affecting the internal and external environment of an organization
   • Government intervention and Foreign Policy
     • Incentives
     • Technical assistance
     • Market assurance
     • Business promotion
     • Institutional support
       • Trade unions
       • Chamber of Commerce
       • Trade associations (Association of Bhutanese Industries)
     • Managing external affairs (Impact on Operating income)
     • National Government and International Organizations (WTO)

Reading Lists:

1. Essential Readings
   • Steiner, G., &Steiner, J.(2016). Business, government and society: A managerial perspective(11th ed.). New York: McGraw-Hill Higher Education.
   • Gittell, R., Magnusson, M., & Merenda, M. (n.d.). Government, public policy, and sustainable business (pp. 99-156). The sustainable business case.
   • http://2012books.lardbucket.org/pdfs/sustainable-business-cases/s07-government-public-policy-and-s.pdf
   • Baron, D.P. (2001). Private politics. Journal of Economics & Management Strategy, (2003): 12(1), 31-66.
2. Additional Readings
   • Coen, D., Grant, W., & Wilson, G. (2010). The Oxford handbook of business and government. Oxford: Oxford University Press.
   • Kinga, S. (2009). Polity, kingship and democracy. Bhutan Times Ltd. https://www.scribd.com/doc/145752580/Kinga-PolityKingshipandDemocracy
   • Rodrik, D. (2002).Feasible globalizations. National Bureau of Economic Research.
   • Frankel, J.A. (2000). Globalization of the economy. National Bureau of Economic Research.
   • Grosse, R. (2005). International business and government relations in the 21st centur Cambridge: Cambridge University Press.
   • Khanna, T., & Palepu, K.G. (2010). Winning in emerging markets: A roadmap for strategy and execution. Harvard Business Press, 2010.
   • Daemmrich, A.A. (2011). International Lobbying and the Dow Chemical Company. Harvard Business Review.
   • Khanna, T., & Palepu, K.G. (2009). Metro: Cash and carry. Harvard Business Review.
   • Frieden, J., Pettis, D., Rodrik, D., & Zedillo, E. (2015).After the fall: The future of global cooperation: Geneva reports on the world economy14. Center for Economic Policy Research.

(http://cepr.org/active/publications/books_reports/viewreport.php?cvno=P244)

• Ghemawat, P. (2007). Redefining global strategy: Crossing borders in a world where differences still matter (1st ed.). Harvard Business Review Press.
• McKinsey & Company. Managing government relations for the future. (http://www.mckinsey.com/industries/public-sector/our-insights/managing-government-relations-for-the-future-mckinsey-global-survey-results)
• Baron, D.P. (1995). Integrated strategy: Market and non-market Components. California Management Review, 37(2), 47-65.

Date: July, 2017