Course Overview
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
2,841
On Slideshare
2,841
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
32
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School The Wharton School of the University of Pennsylvania MANAGEMENT 223 - BUSINESS POLICY & STRATEGY Spring Semester, 1999 COURSE DESCRIPTION AND SYLLABUS Instructors: Phanish Puranam (PP) & Michael G. Jacobides (MGJ) Office: 2061(PP) /2055(MGJ) SH-DH (Management Dept. Suite) Tel: 898-1231 (PP) / 898-1224 (MGJ) Email: puranam@management.wharton.upenn.edu jacobides@management.wharton.upenn.edu Class Hours: Tuesdays and Thursdays 12:00 to 1:30pm Office Hours: By appointment (PP) Course Overview This course focuses on strategic management and strategic decision making and examines issues central to the long-term and short-term competitive position of the company or division / business unit. Students are placed in the role of key decision-makers or their advisors and asked to solve problems related to the development or maintenance of the competitive advantage of the firm. We start the course by looking at strategy at the level of the business unit, which is the fundamental level for competitive analysis. The perspective taken is of a manager in a given unit with particular assets, capabilities and competitive challenges. We look at industry analysis, examine the sources of competitive advantage, and explore generic strategies: How can we analyze the competitive environment, and what are the basic options for business-unit level strategy? What are the bases of competitive advantage? What is the nature of the value chain? Following that, we look at how business units (but also entire corporations) build strengths, by analyzing the nature and value of business and corporate resources and capabilities. The next module of the course examines strategic management at the corporate level. We first look at the vertical scope of the firm, i.e. the degree of its vertical integration. We also look at how the supply chain is managed in different contexts, and how that ties in with Japanese lean production methods. In looking at supplier selection and outsourcing tactics, we (inevitably) come upon some tough ethical dilemmas where strategy meets social responsibility. We then move to the horizontal scope of the firm, and examine how firms that are present in many markets and industries are managed, and how strategy is made in diversified firms. We then briefly look at the problems associated with corporate governance, and review the managerial & legal/institutional structure of public companies as it relates to strategy. Having a better understanding of corporate structures, we examine how firms can manage their scope to achieve competitive advantage. Under the sub heading of scope, we look first at mergers & acquisitions, and inquire as to when (and for whom) M&A’s are beneficial. We then examine how diversification as a corporate strategy can add value. This module concludes with an analysis of strategic alliances & joint ventures, and the associated promises, problems and challenges. The last module is devoted to advanced topics in strategic management. The first week looks at the challenges associated with managing in a globalized environment, and at the particular structures and strategies used by multi-national corporations. The second week examines the particularities of 1
  • 2. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School fast-changing technological environments, and at how firms can lose big or win big from technological innovations. Strategies for hyper-competitive, dynamic business and technological environments are considered. The third week expands on high-technology issues. The first session examines the evolution of industries, and how firms should structure their strategies to profit from increasing returns and industry life cycles. The second session examines the strategic challenges posed by Information Technology, and in particular by the de-construction of the value chain and the emergence of digital intermediaries. The fourth week in this module looks at the emerging area of knowledge management, whose central tenet is that managing the knowledge resident in the firm is a basic driver of competitive advantage, and examines the particular instance of management consulting firms. Finally, the last session of this module looks at the role of organizational structure, the process of strategy formation, and concludes the course by providing a synthetic perspective on business and corporate strategy. Readings Readings for this course are in the textbook and the bulk pack. The bulk-pack is available at Wharton Reprographics. The textbook for this class is Grant, R. M. 1998. Contemporary Strategy Analysis, Third Edition. Cambridge, MA: Basil Blackwell. It is available at the University of Pennsylvania Bookstore. The readings include both conceptual material and cases. The reading list provides detailed information on the readings to be used in each class session and assignment questions for each of the cases. In addition to thinking about the answers to the specific questions for each of the cases, students should try to identify the reasons why the organization has or has not prospered, and the critical issues facing management. Specify what actions you would take if you were the manager of the firm. You are not required to bring a formal case write-up to class, but should bring your notes on the case with you for your use in class discussion. Course Requirements and Evaluation This is a preparation- and reading- intensive class. Most weeks consist of two linked sessions; one session is devoted to concepts and frameworks, while the other is meant for a case discussion .For the first session of each week there are ususally two to three readings. In addition, there will be a short in class exercise, which will complement the theoretical material covered in the session; we will try to apply theory as much as we can to real-world cases. For the second session, there is a case study that illustrates and expands the theory. For some focused topics, we may devote only one session, which will occasionally contain a case. In addition to the material prescribed, there are several optional readings (which you are not expected to have read) that may prove of interest either now, or later in your careers, as references. At any rate, you will need to have thoroughly read the case before coming to class, and also have familiarized yourselves with the analytical frameworks provided in your readings. Please make appropriate time allowances for preparing every session. Being adequately prepared for class discussion is a key part of this course. On the theoretical side, you will be expected to illustrate and expand the concepts through the in-class assignment and mini-case discussions. As for case studies, you are expected to be thoroughly familiar with case details, and have prepared some answer to the motivating questions provided in the syllabus. Some class discussions may be organized in adversarial format with groups of students assigned to 2
  • 3. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School support different points of view. Specific responsibilities for particular questions may be assigned, and students will be asked to participate if they don’t volunteer – orally, or in written form.As for grading, the course requirements consist of class participation, an in class mid-term exam, a group project and an in-class final examination. The course grade will be based on the points you get for these four components, weighted 20%, 20% 20% and 40% respectively. Class participation: Since this course uses cases extensively, the success of the course depends on effective student participation in class discussions. In evaluating class participation, we shall be asking ourselves first of all, whether the student is well prepared and interested. Beyond that, we shall be concerned with the following questions: (1) Is the student considerate of other class members? (2) Is the student responsive to the contributions of other class members and to the general flow of the discussion? (3) Do the student's comments reflect careful analysis of the case? (4) Do the student's comments contribute to a clearer formulation of the issues in the case? Any in- class written case discussions will constitute part of the participation grade. Please make sure you are regular with attendance.Up to three (justified) absences will be allowed. If, for any reason, a student has to miss more than three, his class participation score will be reduced accordingly. So please take these factors into account when deciding whether to take this course! Mid - Term Exam: The in-class, closed-book, closed-notes exam will be given during class hours on Thursday, March 4th. A make-up may be made available, but note that the make-up may be more difficult than the normal exam. Group project: A maximum of four people may group together to prepare a written project (maximum length 20 pages, exclusive of exhibits). The focus of this project is a strategic problem faced by a firm or a group of firms, and your analysis of the situation followed by possible recommendations. A list of indicative topics will be made available in class. Final Examination: The in-class, closed-book, closed-notes exam will be given during exam hours as per the date in the Calendar, and will consist of two parts, each lasting one hour. The first part will contain objective questions on the courses’ substantive material. The second part will be a subjective appraisal of a competitive situation, which should demonstrate your ability to use the analytical tools and concepts you have been taught in this course correctly. Grading for all four components and overall course administration will be undertaken by Phanish Puranam, who will be the principal instructor this semester. Michael Jacobides will teach some particular sessions (denoted by MGJ in the syllabus) and may participate in the oversight and grading of some of the group projects. Who should take this course: We expect you to have a familiarity with several key business issues, and to have fared well in the introductory management course. Also, some fundamental principles of corporate finance and accounting or even economics may prove to be of help, even if they won't be explicitly used. What is required, however, is that you be comfortable at figuring out what the numbers, figures, and ratios at the "exhibits" of your cases mean. You should be able to understand business statistics, and 3
  • 4. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School interpret financial information. If you feel that you have weaknesses in these areas, feel free to consult with the instructors, and we will try to find the best way of dealing with them. 4
  • 5. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School COURSE OUTLINE PART I - THE CONCEPT OF STRATEGY January 12 Introduction and Course Overview Tuesday (PP) Readings: 1. Grant, Chapter 1: The Concept of Strategy. 2. A Guide to Case Analysis, HBS Press 3. The Return of Strategic Planning, BusinessWeek. January 14 Measuring corporate performance Thursday (PP & MGJ) Readings: 1. Grant, Chapter 2, Framework for Strategy Analysis 2. Valuing Companies (from the Economist) 3. Kay J, Why firms succeed, Chapters 1 (Corporate success and corporate failures)& 2 (Adding Value) Optional 1. Kay J. Chapter 13 The value of competitive advantage Discussion Questions: 1. If strategy is the pursuit of profit, which measure of performance comes closest to being the one you would use to judge the quality and effectiveness of a corporations strategy? 2. What are the implications of using a given measure of performance to judge corporate strategy. 5
  • 6. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School PART II - BUSINESS LEVEL STRATEGY January 19 Industry Analysis and Strategic Interaction Tuesday (PP) Readings: 1. Grant, Chapter 3: Analyzing the Industry Environment (p. 70-75, skim) 2. Porter, M., Competitive Moves, Competitive Strategy, Chapter 5 3. Pindyck and Runbenfeld, Chap 13. Optional 1. Porter, M. - Note on the Structural Analysis of Industries. January 21 Thursday (PP) Case: The Airline Industry 1978-1988 (A) and (B) 1. How has the structure of the U.S. airline industry changed since the first two or three years after deregulation? What has happened to average industry profitability? 2. What has happened to each of the five structural forces that determine the intensity of competition? 3. What role have the strategies pursued by the major airline competitors played in changing industry structure? 4. Consider the competitive moves of airlines during 1978-1988. How can you describe them in terms of Porter's analysis of competitive interaction? What were the consequences of these moves? With the benefit of hindsight, do they all appear appropriate? 5. Which is the best positioned of the majors for the 1990’s? What its strong and weak points? 6. If you were an airline strategist in 1988, what factors would you be looking at? What would be the factors you would look at in order (a) to diagnose the competitive landscape, and (b) to prescribe actions to your client, CEO of Fly-Into-The-Marsh Aviation Co.? 6
  • 7. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School January 26 Sources of Competitive Advantage, the Value Chain, and Tuesday Generic Strategies (MGJ) Readings 1. Grant: Chapter 8, Cost Advantage, and Chapter 9, Differentiation Advantage 2. M. Porter, Generic Competitive Strategies, (Competitive Strategy, Chapter 2) 3. M. Porter, The Value Chain and Competitive Advantage, (Competitive Advantage, Chapter 2.) Optional Reading: 1. Grant, Chapter 7 – Nature and Sources of Competitive Advantage, January 28 Thursday (PP) Case: Hudepohl Brewing Company 1. What is Hudepohl’s Strategy? How does it fit into the generic strategy typology? 2. Can you analyze Hudepohl’s value chain? Where do you think Hudepohl draws its strengths (and revenue!) from? 3. Can profits be improved by changing the mix of Hudepohl’s activities? Which activities should be candidates for expansion? 4. What policy problems and options face Bob Pohl? What are the ones he is focusing on? Do you think that he has framed the situation (and the problem he should solve!) well? Why / Why not? 5. Should Hudepohl seek to become a major player in the regional (not just Cincinnati) beer market? Why / Why not? 6. Given your readings, how would you combine the value chain analysis and the generic strategy framework to propose changes to Hudepohl’s strategy? What would your particular recommendations be? Substantiate them! 7
  • 8. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School February 2 Resources & Capabilities: Drivers of Business and Corporate Success Tuesday (PP) Readings: 1. Grant, Chapter 5: Analyzing Resources and Capabilities 2. Prahalad & Hamel: The Core Competence of the Corporation (HBR) 3. Montgomery and Collis :Competing on resources (HBR) Optional Readings: 1. Stalk, Evans and Shulman: Competing on Capabilities (HBR) 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Montgomery: Note on Resources & Capabilities (HBR) February 4 Thursday (PP) Case : Nucor at Crossroads 1. What is the industry structure that Nucor faces? What are the structural forces affecting it? What would be your expectation for Nucor’s success based on Porter’s 5-forces model? What is the possible use of Porter’s framework for this case? 2. What is the basis of Nucor’s success? Why do you think that it managed to achieve such a financial and operational performance? 8
  • 9. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School 3. What is your assessment of Nucor’s success in the future? What, in particular, is the role you expect to see Nucor’s rivals play? (Be specific!) Which are the threats to Nucor’s success? What are the limits to its expansion? 4. Is Nucor well positioned to be a successful first adopter of the compact strip production (CSP) technology? Why /Why not? 5. What would you do at this critical juncture? Would you adopt? Would you wait for more evidence from the German supplier? Would you wait for competitors to adopt first? Would you not adopt altogether? Substantiate your opinion and prepare to defend it in class. 9
  • 10. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School PART II – CORPORATE STRATEGY February 9 Vertical Scope of the Firm: Vertical Integration, Sourcing Decisions, and Tuesday Managing the Supply Chain – and some Ethical Implications, too… (PP) Readings: 1. Grant, Chapter 13. The Scope of the Firm: Vertical Integration 2. Coordinating the Supply Chain, from Womack, Jones and Roos, The Machine that Changed the World, ch. 6. 3. Kay J, Chapter 4 ,Relationships and contracts (Why firms succeed) Optional Reading: 1. Dyer, Cho and Chu: Strategic Supplier Segmentation, (California Management Review) February 11 Thursday (PP) Case: Nike and Reebok 1. Do Nike’s sourcing strategies remind you of the GM or the Toyota “model” discussed in the Womack et al chapter? How would you make your judgement? 2. Why did Nike want to keep is South Korean and Taiwanese sub-contractors, even as it moved to mainland China and Indonesia? What kept it from shopping around for the absolute lowest cost bidder? 3. What characteristics of sport shoes outsourcing dictate the way you should co- ordinate your supply chain? Why do you think that a few firms that don’t even manufacture what they sell have such enviable financial performance? 4. Do you think that Nike’s memorandum of understanding is appropriate and sufficient? How does Reebok compare? Do you feel that Nike is / is not responsible for the torturous conditions and meager pay of its subcontractor’s workers? Why / Why not? 5. If you were a manager in Nike or Reebok in 1994, when things started looking harder, and wanted to contain your costs, what would you do vis-à-vis your subcontractors? How “far” would you go? Would supplier management ethics be an issue for your PR Dept, or the CEO? Why? Bring you values to the fore and prepare for a heated discussion! 10
  • 11. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School February 16 Horizontal Scope: Managing Multi-business Firms Tuesday (PP) Reading: 1. Grant, Chapter 15: Managing the Multi-business Corporation Case: Disney Corporation 1. Examine the evolving mix of businesses Walt Disney is in. What can you observe as for its diversification moves? What was Walt Disney after when making its diversification? How was value added in such moves? What trends can you indentify in the composition of Disney’s portfolio, and how can you account for them? 2. What is it that “brings things together” in Disney? Can you identify any common threads? Also, can you apply any of the concepts we have learnt so far in order to account for Disney’s corporate success? 3. How did Disney’s diverse businesses work together? Where do you see the mechanisms of coordination? How does the corporate level add value to Disney as a whole? 4. What is the role of Headquarters, and how do they manage their businesses? How does the evidence of the case compare with your readings? Do you think that Disney is / is not typical of other multi-business firms? In which way? 5. Is the book division managed with the same philosophy and / or the same financial criteria that movies are managed? Why / why not? What can you infer from such differences? Use the readings to explain why such differences are legitimate. 11
  • 12. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School February 18 Scope, Expanded: Corporate Governance and Mergers & Acquisitions Thursday (MGJ) Readings : 1. M. Blare, A Primer on Corporate Governance 2. Kay J. Chap 10 Mergers, (Why Firms Succeed) Mini-Case: Sears Roebuck (Monks and Minow, Corporate Governance, p.399-411) 1. Why did Sears have such an abysmal performance in the period described? Would that have happened if corporate structure / governance structure would be different? Do you think that Sears would have “woken up” any sooner? Why? 2. Strategy succeeds when there is a clear set of objectives. What guides these objectives in publicly traded corporations? What is the impact of different definitions of corporate success? Why do trends in metrics of profitability affect corporate strategies? What does the shift from accounting measures to market- value-based to economic-value-added measures mean, and what are its impacts? 3. Do you think that the company’s decision to invest its resources to fight off Monks from becoming a board member was justified? If you were a middle manager in Sears, what would have been your stance? February 23 Tuesday (PP) Readings 1. Mastering the Acquisition Process: The Key to Value Creation (chapter 1) Optional 1. Mastering the Acquisition Process: Understanding the Process (chapter 6) Case: Kraft General Foods: The Merger 1. How can you describe the merger in terms of scope? What were the objectives of GF when it bought Kraft? What were the steps taken in the post-deal process? What did they accomplish, and what did they leave out? What was well and what was poorly executed? 2. In your opinion, were there or were there not any synergies? What, in particular, added value in this merger? How was value created? What remains to be done, yet? Provide specific evidence to support your answer. February 25 Scope, Expanded: Diversification as a Strategy 12
  • 13. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School Thursday (PP) Readings: 1. Grant, Chapter 14: Diversification Strategy 2. Montgomery & Collis :Creating Corporate Advantage 3. Note on Diversification as a Strategy, M. Salter and M. Porter Optional: 1. Learning from diversifying :R.Miles HBS Note March 2 Diversification and Corporate Strategy Tuesday Guest lecturer:Prof. Harbir Singh Readings: The limited March 4 Mid term exam Thursday (In class, closed book, closed notes) March 9 No Class (Spring Break) Tuesday March 11 No Class (Spring Break) Thursday 13
  • 14. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School March 16 Scope expansions: Strategic Alliances and Joint Ventures Tuesday (PP) Readings : 1. Contractor & Lorange: Why Should Firms Cooperate : The Strategy and Economics of Cooperative Ventures. 2. Hamel, Doz & Prahalad: Cooperate with your Competitors and Win (HBR) Optional Readings: 1. Note on the Analysis of Strategic Alliances (HBS) March 18 Thursday (PP) Case : GM and its Asian Alliances 1. If you were Roger Smith, would you have entered into the NUMMI joint venture with Toyota? Why or why not? 2. What criteria would you use to gauge the success of NUMMI? How can you use the readings to better assess pluses and minuses of that joint venture? 3. What did Toyota take out of the GM alliance? How did GM’s approach to alliance shape Toyota’s actions? What were the trade-offs for both parties involved, and how did they manage them? 4. Identify all of GM’s Alliances. What purpose did each of them serve? How would you classify them, according to the readings? Do they seem to make sense, and why / why not? Be prepared to discuss the objective and the way to assess GM’s alliances. 5. Consider GM and the web of alliances it has entered. What are the particular challenges of managing a complex and evolving set of alliances, rather than one- off relationships? 14
  • 15. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School PART III – ADVANCED TOPICS, STRATEGY PROCESS AND SYNTHESIS March 23 Tuesday Managing in a Global Environment;MGJ (PP) Readings : 1. Grant, Chapter 14: Global Strategies and the Multi-National Corporation 2. Ghoshal., S., Global Strategy : An Organizing Framework, (SMJ) Optional : 1. Kogut B. A note on global strategies (SMJ) March 25 Thursday (S.Levine) Case : Phillips and Matsushita. 1. How did Philips become the leading consumer electronics company in the world in the postwar era? What were the strengths and competencies they built on? What were their weaknesses? 2. What, in particular, was the organizational structure that Philips used to dominate different markets? What were the advantages of its approach? What other “global” strategic and organizational factors can account for Philips’ success? 3. How did Matsushita manage to displace Philips from its world-wide leadership? What were its own strengths and failures? 4. Konasuke Matsushita only traveled abroad for the first time when he was 50 years old. How did Matsushita manage to become a global empire, and overtake Philips in only 30 years? What part of their global strategy could be credited for that success? 5. Why is Philips undergoing such drastic re-configurations in the 1980’s? And why is it having such a hard time adjusting and changing? What form do you see Philips taking, and why? What do you think of Matsushita’s planned changes? What has brought them about? 6. What parts of the readings can illuminate the evolution of both Matsushita and Phillips, as well as the sources of their strengths and weaknesses? Be specific in using some of the concepts provided. 15
  • 16. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School March 30 Competition and Strategy in Technology-Intensive Industries Tuesday (PP) Readings: 1. Grant, Chapter 11: Technology-Based Industries and the Management of Innovation. 1 2. Porter M. Chapter 8 (Competitive Strategy) Optional Reading: 1. Teece, Profiting from Technological Innovation April 1 Thursday (PP) Case: EMI and the CT Scanner (A and B) 1. What were the sources of the capabilities that lead to EMI’s early success with the scanner? What were the weaknesses in its capabilities that led to its failure to sustain that success? 2. What were the advantages and disadvantages of the entry mode EMI chose in going to the US market? What other alternatives would you think, and how would you assess their potential value? 3. What was Powell’s initial belief about the degree to which he had a strong protection around the innovation? What turned out to be the degree of EMI’s technology protection? 4. Can you detect any role for complementary assets and co-specialized products in EMI’s / CT scanner road to decline? If so, what do you think that EMI could have done? 5. What was the role of competitors in EMI’s failure? Could EMI have reacted differently, and, if so, how? More generally, had Powell been blessed with the opportunity to read today’s technology readings, how would his decision have been different? 6. How can you integrate the lessons learnt last session on managing global businesses with EMI’s failure? What aspects of its structure and global strategy were right, and which parts were wrong? What would you have done differently, and why? 16
  • 17. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School April 6 Industry evolution, life cycles and network externalities Tuesday Swap!!! (MGJ) Readings 1. Chapters 1 and 7 of Information Rules, Shapiro and Varian Optional : 1. Increasing Returns and the new world of business, W Brian Arthur HBR 2. Brandenburger and Nalebuff: “The Right Game”, HBR, July-August 1995. Case: Cusumano et al., "Strategic Maneuvering" Questions: 1. Who was responsible for the evolution of the VCR industry? 2. Who were the complementors in each side of this rivalry? 3. How would this industry have evolved if increasing returns were not present? April 8 Tuesday Strategy in a Digital Environment (MGJ) Readings: 1 1. Evans& Wurster Strategy and the new economics of information.(HBR) 2 2. The Virtual Value Chain (HBR) Optional: 1. The coming of knowledge based business 2. How information technology drives strategy 3. Crane & Bodie The Transformation of banking (HBR) 17
  • 18. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School April 13 , Knowledge management Tuesday (PP) Readings: 1. Argyris C : Teaching smart people how to learn (HBR article) 2. Nonanka I. The knowledge creating company (HBR article) 3. Grant Chap 17, pp 433-437 Optional: 1. Skandia AFS: Developing intellectual capital globally April 15 Thursday (MGJ) Reading: 1. A note on knowledge management (HBS) Pages 1-5 mandatory, 6-20 optional Cases: KPMG: One Giant Brain, and Knowledge Management in McKinsey Questions 1. How did the KPMG system evolve? In which way was the system adopted ? What kinds of information were put on the system implemented? What are the different sorts of knowledge and information? How, very specifically, does KPMG expect to derive benefit from it? 2. Given the above, are there implications on what kinds of knowledge management mechanisms and incentives you institute in the face of different kinds of knowledge? 3. What are the kinds of knowledge that McKinsey is interested to manage, and what are those KPMG is? Which are the implications of these differences for the knowledge management policies, both as for organizational structure / incentives and as for technology used? 4. More generally, what do you see as the impacts of a knowledge management system on the way a profesional services firm is structured? How do these relate to career advancement? Centralization vs. autonomy? (differentiate between org. structure and incentives!) 18
  • 19. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School April 20: Group project presentation Tuesday April 22 What is Strategy? Strategy Process vs. Strategy Content, Thursday and Course Review (PP & MGJ) Readings: 1. Mintzberg, H. “Crafting Strategy” (HBR) 2. Porter M., “What is Strategy?” (HBR) 3. Mickelthwait and Wooldridge ,Introduction and Chapter 2 in "The Witch Doctors" Optional Readings: 1.Peters, T., R. Waterman and J. Phillips. “The Seven-S Framework” 2.Mickelthwait and Wooldridge Chapters 7 , in The Witch Doctors 3.Eccles and Nohria Chapters 1 , 2 3, in Beyond The Hype Case: Honda (A) and (B) 1. Read first Honda (A) and then Honda (B). What do you think? Is the Boston Consulting Group analysis valid? Is it just smoke and mirrors? Is it just an inaccurate description of the motivations of the main strategic actors? 2. How can you differentiate between strategy as a content (i.e., the information which refers to who will attain superior performance) and strategy as a process (i.e., the formal strategic planning cycle)? Are these two incompatible or complementary notions? 3. How can you reconcile Mintzberg’s notion of crafting with all the material we have covered so far? If strategy is such an endogenous, evolutionary, almost haphazard process, what is the value of using analytical frameworks? 4. How does the Porter article relate to the material we have covered so far? Do you agree with his notion of complementarities, and with his caution against growth as a target? Why / why not? Do you find any evidence of his theory in Honda’s story? 5. Given the process reading we have done, what do you think is the take-away from a content article such as the Porter one – or of indeed, most of the material we covered so far? Is the knowledge we gained too “theoretical”? 6. What do you think that you can do with your knowledge of strategy? In which way can you put your (hopefully superior) knowledge of strategy process and content at work? 19
  • 20. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School BULK PACK LIST: Management 223 – Spring 1998 Business Policy & Strategy – Phanish Puranam & Michael G. Jacobides * : Optional Reading 1. Syllabus and Course Description 2. A Guide to Case Analysis (p. 285-296) 3. The Return of Strategic Planning. (BusinessWeek) 4. Valuing Companies (Economist) 5. Chapters 1 and 2 ,from Why Firms Succeed , John Kay 6. Chapter 13 from Why Firms Succeed , John Kay* 7. Porter, M. Competitive Strategy, Chapt. 5 (pp. 88-100) 8. Chapter 13 from Pindyck and Rubenfeld 9. Porter, M. - Note on the Structural Analysis of Industries (HBS Note 376054) * 10. The Airline Industry 1978-1988 (A) and (B) [HBS cases 9-390-025 and 9-390-026] 11. Porter, M. Competitive Strategy, Chapter 2 (Generic Strategies) pp. 34-46 12. Porter, M., Competitive Advantage, Chapter 2 (Value Chain) pp. 33-61 13. Hudepohl Brewing Company [HBS case 9-381-092] 14. Core Competence, Prahalad & Hamel (HBR reprint 90311) 15. Competing on resources (Montgomery and Collis) HBR reprint 16. Stalk, Evans, and Shulman: Competing on Capabilities (HBR reprint 92209)* 17. Montgomery: Resources: The Essence of Corporate Advantage [HBS Teaching Note N1-792-064] * 18. Nucor at Crossroads [HBS case 9-793-039] 19. Coordinating the Supply Chain, from Womack, Jones and Roos, The Machine that Changed the World, chapter 6., pp. 138-168 20. Kay J, Chapter 4 ,Relationships and contracts, from Why firms succeed 20
  • 21. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School 21. Dyer, Cho and Chu: Strategic Supplier Segmentation, California Management Review * 22. International Sourcing in Athletic Footwear: Nike and Reebok [HBS case N9-304-189] 23. The Walt Disney Company (A) and (B) [HBS cases 1-388-147 and 1-794-129] 24. Chapter 10 (Mergers) from Why firms succeed by John Kay 25. Blare, M., A Primer on Corporate Governance, Chapter 2, Ownership and Control 26. Sears-Roebuck Case, from Monks and Minow, Corporate Governance, pp. 399-411 27. Mastering the Acquisition Process, chapter 1: The Key to Value Creation 28. Mastering the Acquisition Process, chapter 6: Understanding the Integration Process. * 29. Kraft-General Foods: The Merger (A) [Harvard Business School case 9-391-139] 30. Creating Corporate Advantage (Montgomery and Collis) HBR reprint 98303 31. Note on Diversification as a Strategy, M. Salter and M. Porter [HBS # 9-382-129] 32. Learning from Diversifying: R Miles HBS Note 9-481-060 33. Contractor, F. & Lorange, P. 1988. Why Should Firms Cooperate : The Strategy and Economics of Cooperative Ventures. 34. Hamel, Doz, and Prahalad: Cooperate with your Competitors and Win (HBR reprint 89104) 35. Note on the Analysis of Strategic Alliances (HBS note 9-939-029) * 36. GM and Its Asian Alliances [Harvard Business School case 9-388-094] 37. Ghoshal, S.: Global Strategy: An Organizing Framework (Strategic Management Journal). 38. Kogut, B: A note on global strategies (Strategic Management Journal)* 39. Philips and Matsushita [Harvard Business School case 9-392-156] 40. Porter, M. Competitive Strategy, Chapter 8 (Industry evolution) 41. Teece, D., Profiting from Technological Innovation * 42. EMI and the CT Scanner (A) and (B) [HBS cases 383-194 and 383-195] 43. Chapter 1 and 7 of Information Rules, by Shapiro and Varian 44. Increasing Returns and the new world of business, W Brian Arthur HBR reprint 96401* 21
  • 22. Management 223 - Business Policy & Strategy Spring1999 Phanish Puranam & Michael G Jacobides The Wharton School 45. Brandenburger and Nalebuff: “The Right Game”, HBR reprint 95402.* 46. Cusumano et al, Strategic maneouvering (Betamax / VHS case) 47. Strategy and the new economics of information, Evans and Wurster, HBR reprint 97504 48. The Virtual Value Chain, HBR reprint 95610 49. The coming of knowledge based business * 50. M. Porter & Milar How information technology drives strategy* 51. The transformation of banking, Crane and Bodie, HBR reprint 96205* 52. Teaching smart people how to learn, by Chris Argyris HBS reprint 91301 53. The knowledge creating company , by Ijuro Nonaka , HBS reprint 91608 54. Skandia AFS: developing intellectual capital globally (HBS case 9-396-412) 55. Note on knowledge management HBS teaching note 9-398-031 56. KPMG Peat Marwick US: One giant brain HBS case 9-397-108 57. McKinsey & Co. Managing knowledge and learning HBS case 9-396-357 58. Mintzberg, H. “Crafting Strategy” 59. Porter, M., What is Strategy? (HBR reprint 96608) 60. Introduction and Chapter 1, in Mickelthwait and Wooldridge, Witch Doctors 61. Peters, T., R. Waterman and J. Phillips. “The Seven-S Framework”* 62. Chapter 7, Mickelthwait and Wooldridge, Witch Doctors* 63. Chapters 1, 2 & 3, in Eccles and Nohria, Beyond The Hype* 64. Honda (A) and (B) [Harvard Business School cases 9-384-049 and 9-384-050] 22