Bus 249f
Immersion Experience: Israel2015
Thursdays
3/12, 3/19, 3/26, 4/2, 416, 4/23
2:00 pm – 5:00 pm
Chancellor’s Suite
Spring Semester 2015
Grace Zimmerman
Senior Lecturer
Email:
Office: Lemberg 161
Office Hours: Mondays and Wednesdays
11:00 – 12:20 and 2:00 – 3:20 pm,
or by appointment
Debbie Berechman
Executive Director, Program Integration & External Relations
Email:
Office: Lemberg 249
Brandeis University
International Business School
Course Description:
Learning Goals and Outcomes:
- To expose and familiarize students to Israel, particularly the unique economic, cultural, political and historical forces that have produced the most prolific, creative, entrepreneurial climate in the world today.
- This course is designed to create an academic foundation that will enhance and heighten the immersive experience of being in the country.
- Ultimately, this experience and the others Brandeis University International Business School offers are designed to expose students to the global economy in a profound, personal and highly experiential manner.
Course Requirements:
This course is only for students admitted to the Hassenfeld Israel Immersion Experience 2015.
Course Approach
Classes will be a blend of lecture and case studies. There are a variety of weekly assignments, including books, notes, cases, Internet links and Youtube videos. Please come prepared and ready to participate in lively discussions with our expert speakers, each of whom has extensive experience and knowledge in their field.
Our speakers have been carefully selected to give you a solid foundation in Israel’s economy and entrepreneurial success, as well as the roots that have built and sustain this economic miracle. It is our fervent intention to present every aspect of Israel as accurately and factually as is possible. While we all have our own personal points of view on Israel, we hope to present you with the facts and let you come to your own points of view.
Course Materials
Textbook: Start Up Nation: The Story of Israel’s Economic Miracle by Dan Senor and Saul Singer. In addition, there are readings, cases and Harvard Business School notes and articles, as well as links to a variety of websites and videos. Start Up Nation is widely available from numerous sites online, new and used. The cases, notes and articles are available in the course pack, as described below.
Course Pack:Course packs with the cases, notes and articles we will cover are REQUIRED and only available through Harvard Business Publishing at with a specific link to our course pack at: Course packs are comprised of copyrighted materials. Please respect intellectual property by purchasing your own copy of the materials.
Grading
For the purpose of grading, assignments will be weighted as follows:
Class Participation50%
Final Project50%
TOTAL 100%
Disabilities:
If you are a student with a documented disability on record at Brandeis University and wish to have a reasonable accommodation made for you in this class, please see me immediately.
Academic Integrity:
You are expected to be familiar with and to follow the University’s policies on academic integrity (see Instances of alleged dishonesty will be forwarded to the Office of Campus Life for possible referral to the Student Judicial System. Potential sanctions include failure in the course and suspension from the University.
Class Participation. Students are expected to attend and participate in every class. This module is an important component of the educational experience of the Hassenfeld Israel Immersion Experience. Participating in the program is a great honor and privilege. We expect (near) perfect attendance. The module only meets 7 times, once for a mandatory introductory session on February 5, and then on 6 Thursdays, March through April. Plan on being present, prepared and ready to participate in a meaningful way for each and every session. Participation will be graded for each session with an emphasis on the quality of your contributions, not the quantity.
Absence from one or more classes can result in a failing participation grade for this course, and puts your participation in the trip to Israel at risk.
Laptops, cell phones and other electronic devices are NOT allowed in this class. Please print cases and bring them to relevant classes. We’ll need them.
Final Exam/Research Project: There is no final exam for this course, per se. There is an individual research project.
Each student, individually and without outside help, will research a company in any industry from the student’s home country doing or trying to do business in Israel, or an Israeli company trying to do business in the student’s home country. No two students can research the same company. Please evaluate the following, at a minimum:
-Porter’s 5 Forces
-SWOT analysis and/or 4 Ps/5Cs analysis
-Customer target segment options and selection
-Evaluation of current efforts, if relevant
-Recommendations for the company moving forward including expected outcomes.
The paper should be 10 double spaced pages or less, not including appendices. Please be as comprehensive and persuasive as you can.
Papers are due at the start of class on the last day of the module, April 23.
Office Hours
All course related questions, issues and discussions should be directed to me, Grace Zimmerman. My office hours are Mondays and Wednesdays from 11:00 am - 12:20pm, and 2:00 – 3:30pm in Lemberg 161, and by appointment. I enjoy the opportunity to get to interact with you as much as possible. Email has proven very helpful in this regard. Please don’t hesitate to contact me if you need assistance in any manner, or have comments, concerns or words of praise for some aspect of the course. The best way to contact me is by email at:
All questions about the trip, logistics, travel visas and special travel considerations should be directed to Debbie Berechman. She can be reached at and at (781) 736-8399.
Assignments
MANDATORY Introductory SessionDEAN’S CONF RM (Th 2/5 3:00 – 5:00pm)
Discussion:Course Introduction and Assignments
Readings:Start Up Nation: The Story of Israel’s Economic Miracle
by Dan Senor and Paul Singer
Start Up Nation is a fun and easy read. The book situates the Israeli economy, particularly its entrepreneurial sector, in Israel’s historical, political and cultural milieu. It will serve as an important foundation to our course and trip. Please read the book prior to the start of our course on Thursday, March 12. Both speakers that day will base their presentations on the book.
Speakers:Grace Zimmerman, Senior Lecturer, module head, and program co-leader
Debbie Berechman, Executive Director, Program Integration & External
Relations at IBS, and program co-leader
Joel Schwartz, Senior VP and General Manager, Global New Business
Development, EMC
Rabbi Lisa Eiduson, PhD, Congregational Rabbi at Temple Beth Avodah
Class #1:Start Up Nation: The Story of Israel’s Economic Miracle
(Th 3/12 2:00 – 3:20pm)
DUE:Please submit the company and idea for your research project at the start of class. A paragraph description of the company and opportunity is sufficient at this time.
Readings: - explore the entirety of the link
Start Up Nation: The Story of Israel’s Economic Miracleby Senor and Singer
Case:None
Speaker:Joel Schwartz
Joel Schwartz is Senior Vice President and General Manager, Global New Business Development at EMC Corporation. With 2011 revenues of $20 billion and 53,000 employees worldwide, EMC is the world’s leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. He is responsible for the overall strategic direction of EMC’s new business activities around the world. He initiated EMC’s R&D efforts in Brazil, Russia, India, China, Singapore, and Mexico as well as numerous investments in Israeli companies. Also included in his responsibilities are EMC’s consumer/small business products division (Iomega) and OEM business unit. Schwartz joined EMC in 1999 from Data General Corporation where he served as senior vice president and general manager of the CLARiiON Division and Vice President, Worldwide Sales and Marketing. Prior to Data General, he was President of Polygen Corporation and held various management positions at Digital Equipment Corporation.
Mr. Schwartz is a member of the Board of Directors of LifeImage, an early stage, Boston-based company designing solutions for sharing patients’ medical imaging information. He is also a member of the Board of Directors of The Finca Vigia Foundation, a non-profit organization working to preserve Ernest Hemingway’s legacy in Cuba. Mr. Schwartz has been a valued member of the Brandeis University International Business School Board of Overseers since 2013.
Joel will be meeting with us in Israel to host venture capitalist forums and other business meetings.
Class #2:Zionism and Israel’s founding; politics, people, religions, economy (Th 3/12 3:30 – 4:50pm)
Readings:
Case:None
Speaker:Rabbi Lisa Eiduson
BIO
Class #3:Immigration to Israel, Israel’s Law of Return, and related political,
cultural and economic opportunities and challenges
(Th3/19 2:00 – 3:20pm)
Readings:
Case:None
Speaker:Rabbi Lisa Eiduson
Class #4:Why leading MNCs are flocking to Israel(Th 3/19 3:30 – 4:50pm)
DUE:Please submit a one page outline of your research findings and early ideas for recommendations for your research project at the start of class.
Readings:Developing a Source of Competitive Advantage: Israel’s Version
Clusters and the New Economics of Competition by Michael Porter
Case:None
Speaker:Joel Schwartz
Class #5:The Conflict: Israel and her neighbors, and current political, cultural and
economic issues(Th 3/26 2:00 – 3:20pm)
Readings:
Case:None
Speaker:Rabbi Lisa Eiduson
Class #6:Jewish Israeli and Arab Israeli Personal Perspectives
(Th 3/26 3:30 – 4:50pm)
Readings:
Case:None
Speakers:Ashraf Hussein and Ohad Elhelo
Ohad Elhelo
Born in Ashdod, Israel, Ohad is studying economics and business at Brandeis University as a recipient of the Slifka Scholarship. Before commencing his studies, Ohad served in the IDF Special Forces unit, Egoz, and later became a combat intelligence officer in 2010, further leading a project that was nominated for the Head of Intelligence Prize for Creative Thinking. In August, upon his return from Operation Protection Edge, Ohad was invited to speak at the “Stop the Terror” rally in Boston, where he summoned thousands of individuals to rise to the challenge of building an “infrastructure of hope”. He was subsequently interviewed on various domestic and international TV channels and was covered in feature articles within prominent newspapers. Ohad speaks regularly at major Jewish events across the country.
Ashraf Hussein
Class #7:Investing in Israel’s Biotech Industry (Th 4/2 2:00 – 3:20pm)
Video:
Readings:Venture Capital in Israel: Emergence and Globalization
Right Up the Middle: How Israeli Firms Go Global
Case:none
Speaker:Henry Kay
Henry Kay is the U.S. Partner of Medica Venture Partners, a global healthcare dedicated VC based in Israel and is an active member of two Angel Investing Groups (Boston Harbor Angels and Launchpad).
He retired from Boston Scientific in 2006, where he was Group Vice President of New Market Development / Strategic Planning, Endosurgery Boston Scientific Corporation (BSC). Prior to joining BSC, Henry was based in the UK for five years as Senior Vice President, Sales and Marketing for Allergan Europe, a global eye care company. He has 35 years of experience in the medical industry in roles which include R&D, International Marketing, Regulatory Affairs, and Strategic Planning for major pharmaceutical companies, including Schering-Plough, American Home Products, Sterling Drug and Allergan.
Henry is a fellow of the Royal Society of Medicine (UK). He serves on the Boards of several start up health care companies, including Smart Cells (sold to Merck in 2010), Cool Systems, Avaxia, Christcot Medical, and Cannuflow. He was a member of the board of Directors of Microfluidics, a public company in the equipment space for pharmaceutical manufacture (sold to IDEX in 2010). Internationally, he serves on the boards of 4 Canadian Medical Device companies (Cellaegis Devices and Imagistx in Toronto, Prev biotech in Edmonton and Dartmouth Medical Research in Halifax). He has been a mentor with the Venture Mentoring Service of MIT. He serves on the Board of Overseers of Beth Israel-Deaconess and Newton Wellesley Hospitals. In addition, he is serving on the boards of Neurofibromatosis (NF Inc.) and JF&CS, both nonprofit organizations.
Class #8:Investing in Israel’s Negev Desert(Th 4/2 3:30- 4:50pm)
Case:Negev Advanced Technology Park in Be’er Sheva
Questions:1. If you were an economic development consultant to the State of Israel
Ministry of Economy, how would you evaluate the National Priority Area Plan and what changes would you recommend to increase business expansion and encourage long term tenant commitment in the target national Priority Areas?
- What do you see as reason/business rationale that ITDC should aggressively develop its land in the Negev Advanced Technology Park and build on a speculative basis? What are the downside risks of moving ahead with speculative development, especially as it relates to some aspects of the Government incentive program?
- If you are Yosef Ginsberg, Co-CEO of ITDC, what lease terms would you propose to Raytheon? Assume Raytheon needs $1,750,000 of tenant improvements.
- If you are Shimon Rubinstein, how would you try to improve the terms offered by the landlords in Ramat Gan and Ramat Aviv?
- What do you see as the pros and cons of the three choices Shimon Rubinstein is considering for Raytheon’s cyber security department? Which one do you recommend, and why?
- Prepare a financial analysis of the three options for Raytheon (including the terms you outline in question #3). Using a discounted cash flow analysis and assuming a 10% discount rat, calculate the present value of the occupancy costs over the lease term, the effective annual occupancy cost per square foot and per employee, assuming Raytheon hires or re-locates 150 people for their facility. Be sure to include the financial impact of the State of Israel salary subsidy outlined on page 3 in the occupancy cost of the Be’er Sheva option (apply the annual subsidy as reducing rental costs). What conclusions can you draw from this financial analysis, and is the financial argument alone compelling enough for Raytheon to move to the Negev Advanced Technology Park?
No Class Thursday, 4/9 – Passover Break
Class #9:Water, A Very Scarce Resource: Necessityis the Mother of Invention
(Th 4/16 2:00 – 3:20pm)
Video:
Case:TaKaDu
Questions:1. Should TaKaDu submit a bid to the Australian water utility? Why or
why not? If yes, how aggressively should it bid and with what sort of parameters on its pricing and product?
- What is TaKaDu’s value proposition? Who at the client sees this value (e.g. CEO, CFO, operations staff, etc.)? What are the implications for TaKaDu’s client selection criteria and business development efforts? What is an “ideal customer” for TaKaDu?
- TaKaDu’s customer acquisition cost (CAC) has “ranged from $40,000 to $120,000” (case p.7). What accounts for this variance? How does this variance affect business development and account management processes?
- Evaluate TaKaDu’s pricing strategy (see case p. 6-7). What do you like or dislike about this pricing approach? What are its implications on client profitability and client lifetime value? What factors make a given client more or less profitable for TaKaDu? How long does it take different clients to be profitable under its pricing strategy?
- Explain your decisions about the following strategic issues confronting TaKaDu:
-Should TaKaDu adopt a geographical focus in its marketing and selling efforts? If so, which geography (or geographies) would you prioritize? Why?
-Should TaKaDu devote more or less of the firm’s resources (i.e., money, time, and people) to R&D, or sales and marketing over the next two years?
Class #10:The Israel-Massachusetts Case Study(Th 4/16 3:30 – 4:50pm)
Readings:
The MA-Israel Economic Relationship. Please read the white paper at this link.
Case:None
Speaker:David Goodtree
David Goodtree is an active investor and board advisor in technology companies in theU.S. and Israel, and also serves as a Global Venture Partner for OurCrowd, the leading equity crowdfunding VC. David is a frequent speaker on the innovation economy, testifying for the US Congress regarding water tech, and delivering presentations at venues such as TEDxBoston, the MIT Enterprise Forum, the Brandeis Global Trade Summit, E2 Environmental Entrepreneurs, and is sought for comment by the Wall Street Journal, NY Times, USA Today.
Goodtree is the author of the “Massachusetts-Israel Economic Relationship” and has led trade delegations to Israel for hundreds of senior executives in business, investment, government, and academia. He co-organized the “W.E.T. Revolution Competition” to highlight innovative water tech companies, created the Massachusetts Water Industry Market Map, and actively promotes US-Israel business ties.
He serves on the boards of business associations and non-profits such as the New England-Israel Business Council and MassChallenge Israel. Previously, David was VP Marketing with Akamai Technologies from the company’s pre-commercial launch through IPO, and also served as Group Director of Forrester Research, providing market research and strategic advice in telecommunications, networking, and computing.
Class #11:Exports: The Challenge of The Newcomer(Th 4/23 2:00 – 3:20pm)
DUE:Your hardcopy final project paper is due today at the start of class.
No late papers will be accepted.
Readings:
or, see the last page of this syllabus for a PESTEL overview.
Case:Israeli Wines in China: Reaching For New Heights
Questions:1. Conduct a PESTEL analysis of China.
- Conduct a SWOT or 4Ps/5Cs analysis of Golan Heights Wines.
- Using Porter’s 5 Forces analysis, evaluate the Chinese beverage industry.
- Assess Golan Wines’ current market entry and integrated marketing plan for China.
- Were distributorships the best mode of entry for Golan Wines to the Chinese market?
- Develop comprehensive and integrated recommendations for a marketing plan for Golan Wines for the Chinese market, including product, pricing, promotion and distribution strategies. Be sure to identify the target audience for your strategy.
Class #12:Ladies and Gentlemen, start your engines! Preparing for our trip.
(Th 4/23 3:30 – 4:50pm)
Readings:
Case:None