Strategic Management


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Strategic Management

  1. 1. San José State University Spring 2009 College of Business Department of Organization and Management Course Green Sheet Strategic Management Business 189 – Section 6 20324 Room: BBC 125 T –TH 12:00 to 13:15 David Hover, Lecturer Webpage: Phone: Please use email. Email: Office: Room BT 660 Office hours: Tuesday 13:30-14:45, and by appointment. COURSE DESCRIPTION: Integrative capstone seminar analyzing interrelationships of managerial decisions/actions within and between the firm and its environment. Applies multi­ disciplinary techniques to diagnose and recommend actions appropriate to specific company situations, using case method. Prerequisite: COMM 100W or ENGL 100WB or LLD 100WB. Restricted to graduating seniors only. LEARNING OBJECTIVES: • To sharpen the student’s ability to think critically, logically and strategically. • To diagnose situations from a strategic perspective. This course will help develop your ability to identify key issues, analyze available information, select appropriate strategies, and articulate the reasons for choosing a particular strategy. These skills, which build on the knowledge you have gained from other College of Business courses, are fundamental to your success in business. Just as in the practice of business, there are situations of ambiguity, partial facts and uncertainty which you will encounter during the course. Facing these challenges in the supportive environment of the classroom will give you the opportunity to learn different approaches, develop critical thinking skills and test your achievement. EXPECTATIONS: Because of the nature of the objectives, it is important that you participate on a regular basis. If you come to class prepared, having read the assigned reading and cases before hand, analyzed the discussion questions for the assigned cases, and kept abreast of current business news, you will both enjoy the discussions and get more out of them. Class participation is a significant part of your grade. If you regularly come to class in a timely fashion, ask relevant questions, participate in discussions, contribute examples of work experiences or current events that are related to class discussions, and demonstrate a positive attitude, you will do better. You may also gain credit for participation through discussions with me during office hours or by email. 1
  2. 2. TEXTBOOK AND MATERIALS (available at the Spartan Bookstore or, in some cases, online): ƒ Charles W.L. Hill and Gareth R. Jones, Strategic Management Theory, 8th Edition, Houghton Mifflin Company (now Cengage Learning), Boston, 2008. ISBN-13: 9780618894765. ƒ Course reader, including supplementary readings and cases. The course reader will be available at the Spartan Bookstore. ƒ A subscription no earlier than May 1, 2009 for a print magazine or journal as approved by the professor. Acceptable journals include: The Economist, New York Times, Wall St. Journal, Business Week, Fortune, Forbes, and Financial Times. Successful business people have an in-depth knowledge of their particular field but also an appreciation for other businesses and societal issues. Reading well written articles will also improve your command of the English language. ƒ Online Notes and other readings. Supplemental materials handed out in class and/or posted on Blackboard are required reading. It is the student’s responsibility to complete the required readings according to the syllabus prior to class. Successful business people have an in-depth knowledge of their particular field but also an appreciation for other businesses and societal issues. Reading well written articles will also improve your command of the English language. Blackboard: A Blackboard site for the course is available. Readings, grades, slides, and some handouts will be posted the site in a timely manner. All students are required to establish access to the site. PREREQUISITES: Students must have completed or be concurrently enrolled in all College of Business core courses, must have graduating senior standing and have completed Business 100W or a similar writing course. Under special circumstances the instructor may admit a student taking Business 100W concurrently. (See instructor for details.) GRADING: ƒ Class participation 20% ƒ Case write-ups (3) 25% ƒ Pop quizzes and short papers 10% ƒ Group Project 25% (Written portion accounts for 65%, group presentation for 35% - 10% of the total project grade is determined by performance in oral presentation and group evaluations.) Examinations (multiple choice): ƒ Midterm 10% ƒ Final 10% 2
  3. 3. Case write-ups: Over the course of the semester each student will be assigned two cases or articles to analyze in a written report. A third case study assigned to all students will be due the same day as the final. For the first two case write-ups the questions noted in the syllabus may be used as a guide. However, they are intended only as a guide. Good papers will establish a specific thesis and explore the related issues. Assignments for the case studies will be made in class during the second session. It is strongly suggested that you work in groups while preparing the work-ups to help develop your ideas. However, the paper itself must be your own work. Papers are to be no more than two pages in length, double-spaced with standard margins and fonts. Papers not in compliance will be returned to the student for necessary corrections and will be penalized one full grade. Case studies are due at the beginning of class on dates as noted. NO LATE PAPERS WILL BE ACCEPTED. Failure to complete all three papers will result in zero points for the paper and a reduction of one full letter grade for the course for each instance. Pop quizzes testing your preparedness for class may be given on occasion at the beginning of class and will cover the required reading for that session as described in the syllabus. Please note that there will be no make-ups given for missed quizzes. If you are late to class on the day of a pop quiz you will receive a zero. Understanding that we can not always be there on time, one of the pop quizzes will be dropped from your average. The Group Project assignment will have students prepare a strategic management plan for a company. Groups of five students will be set by the fourth week of class. Over the course of the semester, groups will submit sections of the paper for review. These sections will become the basis for individual chapters of the final paper and presentation. Details will be discussed in class. Case work-ups and the Strategic Management Project must be submitted to Details to be announced in class. All papers must be turned in when due, typed, double-spaced, and free of spelling and grammatical errors. Unless otherwise noted, all material turned in for grading must be the student’s sole effort. Failure to complete either of the exams will result in zero points for the exam and a reduction of one full letter grade for the course. Grading scale: 94% and above A 93% - 90% A- 89% - 87% B+ 86% - 84% B 83% - 80% B- 79% - 77% C+ 76% - 74% C 73% - 70% C- 3
  4. 4. 69% - 67% D+ 66% - 64% D 63% - 60% D- below 60% F WORK LOAD: This is a demanding course. Students are urged to schedule 6 to 10 hours per week, in addition to regular class attendance, in order to successfully grasp the material. If you can not devote this much time to study over the next several months, please drop the course this semester and take it during a semester when you have more time. CONDUCT: Students must maintain the standards of professional conduct in and outside of the class. In accordance with the policies of San José State University and the Department of Organization and Management, no academic dishonesty will be tolerated in this course. Infractions at a minimum will result in a non-passing grade and be reported to the San José State University Office of Student Affairs. Second violations typically result in expulsion. Further information can be found at: Cell phones may not be used in class. Pagers and cell phones should be set so they do not interrupt the class. Dropping and Adding Students are responsible for understanding the policies and procedures about add/drops, academic renewal, etc. Information on add/drops are available at Information about late drop is available at Students should be aware of the current deadlines and penalties for adding and dropping classes. Schedule (Tentative and subject to change as announced in class, by email or as posted on the course’s Blackboard page.) WEEK 1: January 22 Introduction to the Course ASSIGNMENT 1 - Practicing Strategic Management: Groups and companies will be assigned for the first project. In your group, research your company and write a brief paper (not to exceed 2 pages, double-spaced) analyzing your companies performance and the reasons it has been successful. Has your company achieved a competitive advantage (have they been more profitable than their close competitors)? Has the 4
  5. 5. advantage been sustained? What has contributed to their success or failure? Why has the company’s advantage persisted? You sources must include material from The Economist, Fortune, Business Week or similar publications. While Yahoo!Finance or Google might be a good start, they are NOT sufficient. Citations must be provided. To be turned in and graded. Due January 29. WEEK 2: January 27 Fundamental Strategic Management Processes: Planning, Emergent Strategy, and Strategic Intent Required Reading: Hill & Jones, Chapter 1. Note that we will use a definition of “strategy” that differs slightly from the definition in the text. Our definition will be: “An action a company takes or plans to take to attain one or more of its goals.” January 29 z Turn in ASSIGNMENT 1. Fundamental Strategic Management Processes, conclusion. Required Reading: Mattel case (in reader). Review the concepts of: - strategy - strategy formulation - competitive advantage - strategy implementation - sustained competitive - emergent strategy advantage - intended strategy - business model - realized strategy (and unrealized - strategic planning strategy) WEEK 3: February 3 The Nature of Competitive Advantage I: Internal Analysis 5
  6. 6. Because the concepts of internal analysis are so central to strategic management, we cover Chapter 3 before Chapter 2. Required Reading: Hill & Jones, Chapter 3. (Note: the material on ratios can be skimmed at this point. It will be covered more thoroughly week 7.) February 5 The Nature of Competitive Advantage I: Internal Analysis (Continued) Required Reading: Note II “Resources, Capabilities, and Distinctive Competences.” Online. WEEK 4: February 10 The Nature of Competitive Advantage I: Internal Analysis (Conclusion) Strategic Management Project: Review the handout on the Strategic Management Project. Think about who you might like to work with in a permanent group and what company you might like your group to study. Groups will be formed today. February 12 The Nature of Competitive Advantage II: External analysis. Required Reading: Hill & Jones, Chapter 2. Note III: “Market Power: A Concept from Economics.” Online. Strategic Management Project: Review Module A and begin gathering data on your chosen company. Module A is due March 3, Week 7. Also note that your group will need a copy of your company’s Income Statement and Balance Sheet for the session on February 26. Annual reports and 10K reports are usually available online. You should read through these before class and discuss them in your groups. WEEK 5: February 17 The Nature of Competitive Advantage II: External analysis (Continued). February 19 6
  7. 7. The Nature of Competitive Advantage II: External analysis (Continued) Case Discussion: The Home Video Game Industry. Required Reading: Home Video Game Industry case and Playing a Different Game (in reader). Study questions: What resources, capabilities, and distinctive competencies contributed to Nintendo’s success in the home video game industry? What were the most important aspects of the company’s strategy? Does the environment of the home video game industry make it possible for a single company to remain dominant over the long term? What would be necessary for that success? What should top video game executives of Nintendo, Sony, and Microsoft do in order to succeed in the future? z Case work-up due: If you were assigned this case, your work-up is due at the beginning of class. WEEK 6: February 24 The Nature of Competitive Advantage II: External analysis (Continued) February 26 Two Profitability Ratios and Corporate Financial Reports Required reading: Note IV: “Two Profitability Ratios”, and Hill and Jones, Chapter 3, pages 93 -96. Bring a copy of your company’s annual Income Statement and Balance Sheet from the most recent two years. WEEK 7: March 3 Three Levels of Strategy in Firms (Introduction) Required Reading: Note V “Three Levels of Strategy in Firms.” Online. z Strategic Management Project Module A DUE: Chapters 2 and 3, an analysis of the external and internal environments of your organization. March 5 7
  8. 8. Three Levels of Strategy in Firms (Continued) Required Reading: Hill & Jones, Chapter 5. Ikea Invades America in reader. Case discussion: Ikea Invades America. What aspects of the company’s business-level strategy contributed to the company’s success? Why was the company so successful? Was its business model difficult to copy? Why or why not? z Case work-up due: If you were assigned this case, your work-up is due at the beginning of class. WEEK 8: March 10 z Mid-term Examination March 12 Economies of scale, Experience curve Functional-level strategy Required reading: Hill & Jones, Chapter 4, pages 109 to 117 only. Chapter 4 mostly reviews subjects you will have studied in classes in Marketing, Operations Management, etc. You are required to read only part, but you may find it useful to go over it as you address the Strategic Management Project questions in the next two weeks. You will be required to understand what a “functional unit” and a “functional strategy” are (see the note online regarding levels of strategy), and to understand the concepts of “economies of scale” and “experience curve” from the section on “Achieving Superior Efficiency.” We will discuss these in class. WEEK 9: March 17 Case Discussion: Replacements Ltd. z Case work-up due: If you were assigned this case, your work-up is due at the beginning of class. 8
  9. 9. Required Reading: Replacements Ltd. case (in reader). Study questions: At the beginning of the course we talked about strategic planning, emergent strategy, and strategic intent. Which of these are important at Replacements? Which, if any, do you think Bob Page should pay more attention to? In which functional units (purchasing, marketing, sales, operations management, information systems, etc.) does Replacements Inc. seem to have effective strategy? In which units could Replacements Inc.’s strategy use improvement? What causes the problems that the functional managers at Replacements Ltd. face? March 19 Special Issues in Technology Industries Required reading: Hill & Jones, Chapter 7. WEEK 10: March 24 and 26 Break: no class WEEK 11: March 31 Cesar Chavez Day – No Class April 2 Special Issues in Technology Industries Required reading:, in reader. z Case work-up due: If you were assigned this case, your work-up is due at the beginning of class. 9
  10. 10. WEEK 12: April 7 COB Assessment. Attendance required. April 9 z Strategic Management Project: Module B, Technology and Business-level Strategy due. Strategy in the Global Environment Required reading: Hill & Jones, Chapter 2: read pp. 66 70, Chapter 8, read pp. 262-283. WEEK 13: April 14 Strategy in the Global Environment (continued). April 16 Case discussion: Outback Steakhouse z Case work-up due: If you were assigned this case, your work-up is due at the beginning of class. Required reading: “Outback Goes International” case. Study questions: How is the franchised-restaurant industry in the U.S. affected by the four attributes of a national environment that impact global competitiveness? (These are discussed in the text on pp. 264.) What does this mean for Outback? Of the four basic strategies for international operations shown on p. 278, which ONE should Outback consider? Why? What will it mean for Outback to follow the strategy you have identified? WEEK 14: April 21 Corporate Strategy, Horizontal and Vertical Integration. Required reading: Read Hill & Jones, Chapter 9. 10
  11. 11. April 23 Corporate Strategy, Diversification. Case discussion: Whole Foods Required Reading: Hill & Jones, Chapter 10, and “Whole Foods Market” (in reader). z Strategic Management Project: Module C, Global and Corporate Strategy due. WEEK 15: April 28 Stakeholders and Corporate Leadership Study questions: What role does leadership play in strategy? What are the important characteristics of a corporate leader? Required reading: Hill & Jones, pp. 366-377. Collins, “Level 5 Leadership.” In reader. April 30 Strategic Management Project Presentations WEEK 16: May 5 - Strategic Management Project Presentations May 7 - Strategic Management Project Presentations WEEK 17: May 12 - Last day of class. - Strategic Management Project Presentations. DUE: The written report on the Strategic Management Project. May 19 - FINAL: 09:45 to 12:00 NOTE: This is not the same time as regularly scheduled class. 11
  12. 12. Students with disabilities who need reasonable accommodations are encouraged to contact the instructor. The Disability Programs and Resource Center is available to facilitate the reasonable accommodations process. 12