Two Diagrams with Many Stories: Incorporating Finance into Teaching Global Strategy
Journal of Teaching in International Business, 30.4, 314-341, 2019
Posted: 3 Feb 2020
Date Written: 2019
In this paper we propose two diagrams, the corporate strategic framework diagram and the free cash flow diagram, to teach students how the finance function is integrated to other business functions in a multinational corporation. We recommend the diagrams as pedagogical tools in the context of a widely used management simulation software, Business Strategy Game (BSG). We provide specific examples of their use to enhance the effectiveness of the simulation experience, to motivate the students to follow current events in international business more closely, and to connect the simulation to real-world business situations. The formulation and implementation of global strategy are complex processes and can benefit from a structured framework. Methods that use the proposed diagrams in teaching international business provide the necessary framework to students in an experiential setting and enhance their learning. Using evaluation scores from end-of-semester business reports, we demonstrate that students’ learning of the global strategy-making process improved from semester to semester as these methods were gradually implemented in our classes.
Keywords: International business, Management simulation, Innovative pedagogy, Integration, Financial strategy
JEL Classification: A22, L22, F37
Suggested Citation: Suggested Citation