The University of the South Pacific
Graduate School of Business
Master of Business Administration Program
Promoting Sustainable and Responsible Business Practices
Course Outline for MBA 434
SOUTH PACIFIC BUSINESS ENVIRONMENT
Suva
Stathem ICT Park Campus
3rd Trimester 2011
Lecturers: Gyaneshwar Rao
Phone3232172
rao_gr@usp.ac.fj
Jim McMaster
Phone 323 1100
mcmaster_j@usp.ac.fj
COURSE LEARNING OPUTCOMES
This course aims to assist students to develop a thorough understanding of the business environment in today’s South Pacific. The course views the South Pacific from both a regional and an international perspective. Particular emphasis is placed upon the investment climate and upon strategies to promote economic growth, employment generation and private sector development.
Upon completion of this course, students should be able to:
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Prepare and present a report that analyses and evaluates the economic growth strategy and prospects of a Pacific Islands economy. The report should analyse the main features of the economy and growth prospects of the main industries and sectors of the economy, trends in investment, employment generation, small business development, public and private sector reform and development, public financial issues, national debt and economic management of the economy, natural resource management, education and human resource capacity development, and health and social sector development.
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Apply the techniques of cost-benefit analysis and the planning balance sheet approach to business investment decisions.
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Analyse Pacific Island industries in terms of competition, industry structure, cost structure, growth performance, price leadership, competitive advantage, export performance, regulation, and technology and sustainability issues.
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Prepare a feasibility study to select the optimal location for a foreign enterprise that plans to invest in an off-shore manufacturing plant in a Pacific Islands economy. This study will involve undertaking a comparative location analysis using multi-criteria analysis and a country risk assessment.
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Undertake a risk analysis of a major business investment project such as a new multi-million dollar tourism hotel resort project in a Pacific Island.
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Undertake a policy analysis study and review approaches to monitor and evaluate the effectiveness of current policies, policy instruments and alternatives.
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Evaluate the effectiveness of current policies to promote small business development, entrepreneurship, and private sector development.
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Review the role of business incubators and business online toolkits as measures to support small business development in the Pacific Islands.
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Recommend a set of appropriate policy measures to promote green investment, exports and stimulate sustainable economic growth in the Pacific Islands.
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Analyse the role of the World Bank, the Asian Development Bank (ADB), Commonwealth Secretariat, UNDP and the CROP Regional Institutions and make recommendations on how these organisations could be more effective in assisting the Pacific Islands
METHOD OF INSTRUCTION
The course is highly interactive between students and lecturer, as well as between students themselves. It demands active and ongoing participation by all. Students will work in teams to do the tutorial exercises.
ASSESSMENT
Assessment in this subject is based on the following elements:
Mid- trimester test. 20%.
Individual Topic Presentation 20%
Each student will make a 10 minute presentation using Powerpoint on one of the topics listed below.
Business Environment Analysis and Country Presentation, 20%
Groups will make a 20 minute presentation using Powerpoint on their assessment of the business environment in a Pacific Island Country assigned to their group.
Groups should analyse the business environment of the selected country and make a presentation using charts, diagrams, photos and illustrations. Reports should cover:
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World Bank ease of doing business survey
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Analysis of trade and investment opportunities
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Country Economic Profile and Private Sector Structure and Performance
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Economic Outlook for International Business
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Review of the growth prospects of industries
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Investment Promotion and Trade issues
Final Exams 40%
A final 3-hour exam will be held at the end of the trimester. The assessment measures will be based on the learning outcomes outlines above. Students must achieve a minimum of 40% in the final examination, (16/40).
Individual Presentation Topics and weekly Time Schedule
Each student will be assigned a topic to present to the class. The presentation will take the form of a mini-lecture and will be conducted over the period from week 3 to week 8. A powerpoint slide presentation should be prepared on the main issues to be discussed. Students should identify two questions for group discussion. The presentation should take about ten minutes and no longer than 15 minutes.
Week 3 Student Presentations
Role of Pacific Islands Forum Secretariat in relation to economic development, trade, investment and private sector development.
Role of the Asian Development Bank in promoting private sector development in the Pacific Islands
Role of the IMF and World Bank in the Pacific
Trust funds in the Pacific
Role of remittances
Week 4 Student Presentations
Investment Promotion Agencies in the Pacific
Pacific Island Trade and Investment Portals
Fiji Momi Bay resort development project
Fiji Natadola resort development project
Grand Pacific Hotel Suva project
Yaqara Film City tax free zone project
Week 5 Student Presentations
Mining in PNG
Virgin coconut oil and cosmetic products
Case Study; Pure Fiji
Future Forest Industries and Teak plantations in Fiji
Pacific Black Pearl Industry
Week 6 Student Presentations
Review of the Fiji Development Bank
National Centre for Small and Microenterprise Development in Fiji and other PIC small business centres: Lessons from experience.
ANZ Rural Banking and Microfinance in Fiji; Lessons from experience
Week 7 Student Presentations
Review of Business Incubators in New Zealand and Australia
Family businesses in Fiji
Ginger and agro processing in Fiji
Garment Industry in Fiji
Micro-brewery projects
Adventure and ecotourism projects
Week 8 Student Presentations
Case Study; Fiji Water
Case study; Pacific Green Furniture
Mining industry in Fiji including Namosi Copper Mine and Bua Bauxite mine development and lessons from the PNG Mining experience
Tutu project in Taveuni, young farmer settlement schemes
REQUIREMENTS
Please read the case studies and tutorial exercises before class and be ready to participate actively – to speak up, to ask questions, and to answer questions posed by the lecturer and other students.
Please attend each class. This is an intense, fast-moving course in which attendance is essential.
Work teams will be established and used throughout the course. As managers, you are expected to manage the team efforts so that every member participates to the full extent.
All presentations, whether verbal or written, should be clear, logical, and make good use of evidence. In writing, errors of spelling, diction, and grammar are unacceptable and will result in failing grades.
Academic dishonesty of any kind – cheating on tests, copying others’ work – will be penalised to the full extent. The MBA Programme trains honourable managers.
CLASS TIMETABLE
Week 1
Lecture topic
Pacific Island Economies: an Overview
Structure of Pacific island economies
Economic features
Natural and human resource endowments
Production and trade
Education and labour markets
Review of performance of the economies by UNESCAP, AusAID, World Bank IMF article 4 reports
Country debt levels and deficit budgets
At our first meeting the course teaching method will be discussed in detail. The class will be formed into groups and each group will be allocated a group assignment involving making a group presentation on the business environment in a Pacific Island country. Also each student will select a topic on which to make a ten minute presentation to the class.
Week 2
Lecture topic
Role of the Public and Private Sectors
Historic reasons for large public sectors
Role of government in promoting economic growth
Public infrastructure development and the role of government
Development of the private sector
Reassessment of the role of the public sector
Privatisation
Commercialisation of government enterprises
Public-private partnerships
Alternative methods of service delivery
Private sector as the engine of growth
Week 3
Lecture topic
National Planning and Economic management in Pacific Island economies:
Adapting to the Global Financial Crisis
Sustainable development and a low carbon development path
Role of fiscal and monetary policies
Prices and income policies
Exchange rate policies
Public sector borrowing and debt management
Micro-economic reforms and de-regulation
National sustainable development strategies
New approaches to economic planning
Student Presentations
Pacific Islands Forum Secretariat
Role of the Asian Development Bank
Role of the IMF and World Bank in the 21st Century
Trust funds
Role of remittances
Week 4
Lecture topic
Foreign and Local Investment Promotion
Investment policies and strategies
Factors affecting foreign investments
Role of investment promotion agencies
Role of incentives
Review of major investment projects and risk analysis
Environmental and social impact of large scale mining projects in PNG
Local versus foreign investments
Student Presentations
Investment Promotion Agencies in the Pacific
Pacific Island Trade and Investment Portals
Fiji Momi Bay resort development project
Fiji Natadola resort development project
Grand Pacific Hotel Suva project
Yaqara Film City tax free zone project
Week 5
Lecture Topic
Improving the Private Sector Business Environment
World Bank Easy of Doing Business Rankings
Review of Economic sectors with growth potential
Service sector development
Tourism development strategies
Role of tourism master plans
Technology and back office development
Agricultural sector development
Forestry and sustainable yields
Fisheries development and Pacific tuna
Student Presentations
Mining in PNG
Virgin coconut oil and cosmetic products
Case Study; Pure Fiji
Future Forest Industries and Teak plantations in Fiji
Pacific Black Pearl Industry
Week 6
Lecture topic
Strategies to promote Private Sector Development
Development finance
National small business development agencies/centres
On-line business toolkits
World Bank SMEtoolkit.com
Training entrepreneurs
Student Presentations
Review of the Fiji Development Bank and why development banks have failed in the Pacific.
National Centre for Small and Microenterprise Development in Fiji and other PIC small business centres: Lessons from experience.
ANZ Rural Banking and Microfinance in Fiji; Lessons from experience
Week 7
Lecture topic
Strategies to promote Private Sector Development
Business incubators
Innovation centres
Village factory schemes
Export processing zones, and tax free zones
Student Presentations
Review of Business Incubators in New Zealand and Australia
Family businesses in Fiji
Ginger and agro processing in Fiji
Garment Industry in Fiji
Micro-brewery projects
Adventure and ecotourism projects
Week 8
Lecture Topic:
Corporate Social and Environmental Responsibility
Promoting Corporate Environmental and Social Responsibility
The clean tech and green business revolution
Developing Green Business Enterprises
Measuring carbon footprint of business enterprises
Waste and energy reduction measures
Pollution taxes and incentives for green business
Carbon trading systems
Student Presentations
Case Study; Fiji Water
Case study; Pacific Green Furniture
Mining industry in Fiji including Namosi Copper Mine and Bua Bauxite mine development and lessons from the PNG Mining experience
Tutu project in Taveuni, young farmer settlement schemes
Week 9
Lecture topic
Improving Employment Opportunities
Labour markets in the Pacific
Unemployment and strategies to reduce it.
Wage rates and employment
Self-employment and subsistence sector issues
Role of non-formal education
Small business development in rural areas
The village economy and cash cropping
Pacific Islands Country review presentations by groups
PNG
Solomon Islands
Vanuatu
Week 10
Lecture topic
Trade and Export Market Development
Electronic Trade facilitation
National Single Window trade portals
Regional trade portals
Role of the World Trade Organisation
Trade policies issues
Pacific Islands Country review presentations by groups
Fiji
Tonga
Samoa
Week 11
Pacific Islands Country review presentations by groups
Kiribati
Tuvalu
Marshall Islands
COURSE CURRICULUM
Pacific Island Economies: an Overview
Structure of Pacific island economies
Economic features
Natural and human resource endowments
Production and trade
Education and labour markets
Associated cultural features
Systems of government
Land tenure issues
Population growth and migration
Role of the Public and Private Sectors
Historic reasons for large public sectors
Role of government in promoting economic growth
Public infrastructure development and the role of government
Development of the private sector
Reassessment of the role of the public sector
Privatisation
Commercialisation of government enterprises
Public-private partnerships
Alternative methods of service delivery
Private sector as the engine of growth
Public Policy Analysis and Sustainable Development
Role of policy analysis
Tools of policy analysis, cost-benefit analysis
Policy instruments and measures
Stakeholder Analysis and the Planning Balance Sheet approach
Public Policy Formulation and participation of stakeholders
Monitoring and Evaluation
Foreign and Local Investment and the business environment
Constrains to growth
Investment policies and strategies
Factors affecting foreign investments
Role of investment promotion agencies
Role of incentives
Review of major investment projects and risk analysis
Environmental and social impact of large scale mining projects in PNG
Local versus foreign investments
Economic sectors with growth potential
Service sector development
Tourism development strategies
Role of tourism master plans
Technology and back office development
Computer programming and data entry
Using the Southern Cross cable to deliver services to world
Agricultural sector development
Forestry and sustainable yields
Fisheries development and Pacific tuna
Business enterprise development
Role of entrepreneurs
New enterprises and development
Business plans and feasibility studies
Industry analysis
Analysing competitors
Market research and consumer analysis
The legal issues
Promoting Corporate Environmental and Social Responsibility
The clean tech and green business revolution
Developing Green Business Enterprises
Measuring carbon footprint of business enterprises
Waste and energy reduction measures
Pollution taxes and incentives for green business
Carbon trading systems
Strategies to promote private sector development
Development finance
Small business development
Training entrepreneurs
Business incubators
Innovation centres
Village factory schemes
Export processing zones, and tax free zones
Export market development
Small business and Pacific culture
The legal framework and commercial law issues
Labour markets in the Pacific
Education and employment
Unemployment and strategies to reduce it.
Wages and employment
Labour market growth
Self-employment and subsistence sector issues
Role of non-formal education
Small business development in rural areas
The village economy and cash cropping
Economic management in Pacific Island economies
Role of fiscal and monetary policies
Prices and income policies
Social safety nets
Exchange rate policies
Debt management
Public sector borrowings
Trust funds
Role of remittances
Budget deficits and surplus
Controlling inflation
Promoting employment
Taxation policies issues
Trade: an engine of growth for the Pacific
Lessons from experience
Role of the World Trade Organisation
Regional trade agreements
The Lomé Convention
Trade policies issues
Protection through tariffs and quotas
South Pacific economies in a changing environment
Public Policy Analysis and Economic Reforms
Micro-economic reforms and de-regulation
New approaches to economic planning
Role of sector investment studies
Sectoral and regional plans
Public sector reforms
Sustainable development
The Pacific and World economy
Benefit of globalization
Carbon footprint reduction strategies and policy measures
PICTA and PACER
Potential policy conflicts and globalization
Corporate social and environmental responsibility
The transfer of jobs from high wage counties to low wage countries
Global coordination of social and economic policies
Role of the CROP Regional Organisations
Pacific Islands Forum Secretariat
Role of the Asian Development Bank
Role of the IMF and World Bank in the 21st Century
Multi-national corporation in the Pacific
Boom and bust cycles for Pacific commodities
INTERNET SITES
There is now a large volume of material of direct relevance to the subjects discussed in this course on the Internet. Some important sites are:
Asian Development Bank website - www.adb.org.
ADB has many online publications on the Pacific Island countries. The work of the Asian Development Bank (ADB) is aimed at improving the welfare of the people in Asia and the Pacific.
World Bank website is:
www.worldbank.org
The World Bank (WB) is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense. It is made up of two unique development institutions owned by 185 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
World Trade Organisation (WTO) Website is:
www.wto.org
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.
CROP (Council of Regional Organisations of the Pacific) Agencies
Fiji School of Medicine (FSMed)
Pacific Islands Forum Fisheries Agency (FFA)
Pacific Islands Development Programme (PIDP)
Secretariat of the Pacific Community (SPC)
Pacific Islands Applied Geoscience Commission (SOPAC)
South Pacific Board for Educational Assessment (SPBEA)
Pacific Islands Forum Secretariat (PIFS)
Secretariat of the Pacific Regional Environment Programme (SPREP)
south-pacific.travel (formerly the South Pacific Tourism Organisation - SPTO)
University of the South Pacific (USP)
Forum Fisheries Agency (FFA)
www.ffa.int
The Forum Fisheries Agency was established in 1979 under a Convention signed by twelve Members. The Convention reflects the common concern of member nations on matters of conservation, optimum utilisation and coastal states’ sovereign rights over the region’s living marine resources. FFA has its headquarters in Honiara, Solomon Islands. Membership of the FFA has now increased to sixteen - Australia, Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
Pacific Islands Development Program (PIDP)
www.eastwestcenter.pidp
The purpose of the Pacific Islands Development Program (PIDP) of the East-West Centre is to help meet the special development needs of the Pacific Island region through cooperative research, education and training. PIDP conducts specific research and training activities based on issues and problems proritised by the Pacific Islands Conference of Leaders, which meets every three years
Secretariat of the Pacific Community (SPC)
www.spc.org.nc
The oldest of the inter-government regional organisations, the South Pacific Commission (SPC) was founded on 6 February 1947 by an agreement known as the Canberra Agreement, by the Governments of Australia, France, the Netherlands, New Zealand, the United Kingdom and the United States of America. The SPC’s work program covers diverse activities such as agriculture and plant protection, marine resources, environment management, rural development, rural technology, community health, statistics, economics, demography, women’s programs and activities, community education training, media conservation and exchange.
South Pacific Applied Geoscience Commission (SOPAC)
www.sopac.org.fj
SOPAC, the Pacific Islands Applied Geoscience Commission is an inter-governmental, regional organisation dedicated to providing products and services in three technical program areas of: Community Lifelines; Community Risk; and Ocean and Islands. Its Secretariat is based in Suva, Fiji.
Pacific Islands Forum Secretariat
The Pacific Islands Forum and its Secretariat
www.forumsec.org
The Pacific Islands Forum, formerly the South Pacific Forum until a name change in October 2000, was founded in August 1971 and comprises 16 independent and self-governing states in the Pacific. The Forum is established by a treaty between its members as the region’s premier political and economic policy organisation. Forum Leaders meet annually to develop collective responses to regional issues.
In October 2005, Forum Leaders endorsed the Pacific Plan for strengthening regional cooperation and integration. At the regional level, coordination of the implementation of the Pacific Plan is, in the first instance, the responsibility of the Forum Secretariat.
The Forum’s membership has increased from the original seven founding members (Australia, Cook Islands, Fiji, Nauru, New Zealand, Tonga and Western Samoa – now Samoa) to also include the Federated States of Micronesia, Kiribati, Niue, Republic of the Marshall Islands, Palau, Papua New Guinea, Solomon Islands, Tuvalu and Vanuatu. New Caledonia and French Polynesia, previously Forum Observers, were granted Associate Membership in 2006. Current Forum Observers include Tokelau (2005), Wallis and Futuna (2006), the Commonwealth (2006), the United Nations (2006) and the Asian Development Bank (2006), with Timor Leste as Special Observer (2002).
South Pacific Regional Environment Programme (SPREP)
www.sprep.org
SPREP is a regional organisation established by the governments and administrations of the Pacific region to look after its environment.
SPREP’s mandate is to promote cooperation in the Pacific islands region and to provide assistance in order to protect and improve the environment and to ensure sustainable development for present and future generations. SPREP has 21 Pacific island member countries and four countries with direct interests in the region.
South Pacific Travel
www.spto.org south-pacific.travel (formerly the South Pacific Tourism Organisation or SPTO) is the mandated inter-governmental body for the tourism sector in the region, with the mission to "Market and Develop Tourism in the South Pacific". South-Pacific. Travel members include the Pacific Island nations of the Cook Islands (Cooks), Fiji, Kiribati, Nauru, New Caledonia, Niue, Samoa, Solomons, Tahiti (French Polynesia), Tonga, Tuvalu, Vanuatu and Papua New Guinea (PNG). The People's Republic of China is also a country member of south-pacific.travel.
Small Islands Developing States Network
www.SIDSNET.org
Small Island Developing States Network (SIDSnet connects 43 Small Island Developing States (SIDS) in the Pacific, Caribbean, Atlantic, Indian Ocean, Mediterranean and African island nations. SIDSnet's main goal has been to utilise information and communication technologies (ICTs) to link SIDS in supporting the implementation of the sustainable development objectives of the BPoA.
Australian Development Gateway www.developmentgateway.com.au
Purpose The Australian Development Gateway is a knowledge-sharing website, supporting people working in Asia Pacific countries to reduce poverty and promote sustainability. It is a mechanism for Australians and others in the Asia Pacific region to contribute knowledge and to engage in vigorous discussion.
The Global Development Learning Network (GDLN) www.gdln.org
The Global Development Learning Network (GDLN) is a partnership of over 120 learning centers (GDLN Affiliates) in nearly 80 countries around the world. GDLN
COURSE MATERIALS
Each student will be issued with a CD containing the lecture powerpoint presentations, and some reports relating to the course topics from the Asian Development Bank, Forum Secretariat, AusAID , and World Bank.
Students will be issued with a hard copy of the case studies.
Green Business Websites
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www.EnvironmentalLeader.com
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www.Greenbiz.com
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www.SustainableLifeMedia.com
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www.SustainableBusiness.com
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www.Treehugger.com
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www.Worldchanging.com
TUTORIAL EXERCISES
The class will be divided into groups of four students. Each group is asked to consider the following questions and to prepare a report on the key issues. Groups will be asked to have a representative and to give a feedback report after they have discussed the key issues:
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