Seminar in Strategic Management and
Dr. Jeff Trailer
Office: Tehama 305
Telephone: (530) 898-5663
Office hours: by appointment.
Course Web Page for course e-material: http://www.csuchico.edu/~jtrailer/693x.htm
Prerequisites: Consent of Graduate Coordinator.
An interdisciplinary capstone seminar. Emphasis is on the analysis of complex business
problems via the integration of the subject matter of all previous program courses. Linking the
firm's internal and external environments from the total-enterprise perspective of the general
manager, this course undertakes a systematic inquiry into the strategic management and
administrative business policy issues pertaining to the organization's performance and
effectiveness. Capstone students will participate in project teams and undertake a comprehensive
consulting experience with a client organization as an integral component of the course.
BADM 693 Reading: Articles
(The following articles are available for purchase from Harvard Business Online:)
Innovation killers. How financial tools destroy your capacity to do new things.
By Clayton Christensen, Stephen Kaufman, and Willy Shih. Harvard Business Review,
The Real Reasons Enron Failed -- Lessons for Directors.
Stewart, Bennett1. Directorship; Mar 2006, Vol. 32 Issue 3, p26-29,.
What Is Strategy?
By: Porter, Michael E.. Harvard Business Review, Nov/Dec96, Vol. 74 Issue 6, p61-78, 18p.
Mastering the Management System
By Robert Kaplan & David Norton. Harvard Business Review, Jan 2008. Reprint R0801D.
Why Satisfied Customers Defect.
By: Jones, Thomas O.; Sasser Jr., W. Earl. Harvard Business Review, Nov/Dec95, Vol. 73
Issue 6, p88-91, 14p.
The House of Quality.
By: Hauser, John R.; Clausing, Don. Harvard Business Review, May/Jun88, Vol. 66 Issue 3,
Understanding Industry Structure
By Porter, Michael E.. Harvard Business School Publishing, 9-707-493. 2007.
Understanding Industry Structure
By Michael E. Porter. Harvard Business School Press. August 2007. Product # 9-707-493
How information gives you competitive advantage.
By: Porter, Michael E; Millar, Victor E.. Harvard Business Review, Jul/Aug85, Vol. 63 Issue 4,
From competitive advantage to corporate strategy.
By: Porter, Michael E.. Harvard Business Review, May/Jun87, Vol. 65 Issue 3, p43-59.
Using the Balanced Scorecard as a Strategic Management System
by Robert S. Kaplan and David P. Norton; Harvard Business Review, July August, 2007.
Clusters and the new economics of competition.
By: Porter, Michael E.. Harvard Business Review, Nov/Dec98, Vol. 76 Issue 6, p77-90, 14p,
The Competitive Advantage of Nations.
By: Porter, Michael E.. Harvard Business Review, Mar/Apr90, Vol. 68 Issue 2, p73-93, 17p,
The Myth of Unbounded Growth
Jim Mackey, Liisa Valikangas. MIT Sloan Management Review. Cambridge: Winter 2004.
Vol. 45, Iss. 2; p. 89
How Fast Can Your Company Afford to Grow?
By: Churchill, Neil C.; Mullins, John W.. Harvard Business Review, May 2001, Vol. 79 Issue
5, p135-142, 8p.
Innovating Our Way to the Next Industrial Revolution
Peter M Senge, Goran Carstedt, Patrick L Porter. MIT Sloan Management Review. Cambridge:
Winter 2001. Vol. 42, Iss. 2; p. 24 (15 pages)
An interview with John Sterman, A Sober Optimist's Guide to Sustainability
MIT Sloan Management Review, January 2009.
Reprint number 50303
An interview with Jay Forrester. The loop you can't get out of.
MIT Sloan Management Review, volume 50, number 2, Winter 2009.
Reprint number 50201
Do financial incentives drive company performance? An evidence-based approach to motivation
and for warrant. Excerpted from Hard facts, dangerous half-truths, and total nonsense:
profiting from evidence-based management. (Chapter 5). By Jeffrey Pfeffer and Robert Sutton.
Harvard Business School press. 2007.
Is performance personal or in the system?
Pyke, Will, Management Services; Winter2008, Vol. 52 Issue 4, p40-47, 8p
The Hidden Costs of Organizational Dishonesty
Robert B Cialdini, Petia K Petrova, Noah J Goldstein. MIT Sloan Management Review.
Cambridge: Spring 2004. Vol. 45, Iss. 3; p. 67
Why spy on your employees? Building trust in the workplace.
Excerpted from, What were they thinking? Unconventional wisdom about management,
(chapter 9), by Jeffrey Pfeffer. Harvard Business School press. 2007.
• Mystrategy software for strategic planning: http://www.strategydynamics.com/ The
student version ($25.00) is acceptable to meet the needs of this course (a complete
program, but it expires after 3 months), however the standard program is recommended
• FSA Financial Strategic Assessment A Business Diagnosis & Planning System (Excel 2000)
• Access to the internet: SEC EDGAR database, Form 10k Annual Reports
• English Simplified, 11th Ed. By Blanche Ellsworth and John Higgins, New York:
Pearson Longman Publ.
Evaluation and Grading
This is a performance-based seminar in which the student is evaluated on his or her ability to
unequivocally demonstrate the skills, understanding, and competence expected and required of
someone soon to graduate with an M.B.A.
Plan & Analysis 25%
Final Examination 25%
As defined in the University catalog, letter grades reflect the following levels of
• A =superior work; achievement so outstanding that it is normally attained by
relatively few students.
• B =very good work; achievement clearly better than adequate competence in the
subject matter/skill, but not as good as the superior achievement of students earning
• C =adequate work; achievement indicating adequate competence in the subject
matter/skill. This level will usually be met by a majority of the students.
• D =minimally acceptable work; achievement which meets the minimum requirements
of the course.
• F = unacceptable work; achievement that fails to meet the minimum requirements of
When it is possible to obtain quantitative evaluations of various elements of the course
(e.g., midterm and final examinations, briefs), the following grading scale applies (note: pluses
and minuses will be assigned, as appropriate):
90% - 100% = A
80% - 89% = B
70% - 79% = C
60% - 69% = D
below 60% = F
Strategic Plan & Analysis: Responsible Consultants
We will have the opportunity to apply the concepts studied in the course to actual business
situations. The cases discussed in this course will introduce you to a variety of industries,
companies, and managerial styles, and they will broaden your experience of business strategy
and policy. As part of a group effort, each student will assume the role of Responsible Consultant
one time during the semester. Depending upon the size of the class, the responsible Consultants
are charged with presenting a brief (i.e., approximately 30-40 minutes) oral case presentation to
Plan and Analyses, Written
During the course of the semester, each student will be required to submit written (i.e.,
typewritten or word processed only--no handwritten papers) responses to specific assignments
that will be provided prior to each case discussion. These assignments will focus on particular
questions, issues, or problems raised in the case.
The quizzes will be multiple-choice format, and will cover subject matter and materials included
in the required readings, lectures, and discussions.
Assignments: Strategic Management System Dynamics Simulation
This course allows graduating seniors to demonstrate how well they have mastered the art and
science of business administration by providing them with an opportunity to administer a
business in a simulated competitive environment. The business simulation experience is designed
to provide participants with the opportunity to integrate the concepts and skills learned within
our M.B.A. program.
What is System Dynamics
System dynamics is a methodology for studying and managing complex feedback systems, such
as one finds in business and other social systems. While the word system has been applied to all
sorts of situations, feedback is the differentiating descriptor here. Feedback refers to the situation
of X affecting Y and Y in turn affecting X perhaps through a chain of causes and effects. One
cannot study the link between X and Y and, independently, the link between Y and X and predict
how the system will behave. Only the study of the whole system as a feedback system will lead
to correct results. http://www.systemdynamics.org/
The final examination will be similar in format to the quizzes, and it will cover subject matter
and materials included in the readings, lectures, and discussions. The final examination is
The schedule and number of assignments is subject to modification, sometimes the flow of the
semester is different than I anticipated.
BADM 693: Strategic Management.
Week Date Topics Due Reading
1 Thu 28 Jan Introduction to the course Syllabus
2 Thu 4 Feb Internal Analysis: Liquidity & Solvency (Quiz #1) Innovation Killers (HBR)
Internal Analysis: Operating Efficiency The real reasons Enron failed (Directorship)
3 Thu 11 Feb Defining the mission/vision & strategic objectives (Quiz #2) What is strategy? (HBR)
Internal Analysis: Cost of capital & economic value creation Mastering the Management System (HBR)
4 Thu 18 Feb External analysis: Demand attributes (Quiz #3) Why satisfied customers defect (HBR)
External analysis: Competitive position mapping (Assignment #2) House of Quality (HBR)
5 Thu 25 Feb External analysis: Industry structure analysis - the five forces (Quiz #4) Understanding Industry Structure (HBR)
Integrating external & internal analysis - the value chain framework How information gives you competitive advantage (HBR)
6 Thu 4 Mar Competitive strategy vs corporate strategy (Quiz #5) From competitive advantage to corporate strategy (HBR)
(Assignment #3) Using the Balanced Scorecard as a Strategic Mgmt System (HBR)
Thu 11 Mar Faculty furlough day ***NO ClASS***
Thu 18 Mar Spring Break **** NO CLASS ****
7 Thu 25 Mar Geographic & national competitiveness (Quiz #6) Clusters and the New Economics of Competition (HBR)
(Assignment #4) Competitive Advantage of Nations (HBR)
8 Thu 1 Apr Growth strategy dynamics (Quiz #7) Myth of Unbounded Growth (MIT)
(Assignment #5) How Fast can Your Company Afford to Grow (HBR)
9 Thu 8 Apr Sustainable growth and development (Quiz #8) Innovating Our Way to the Next Industrial Revolution (MIT)
Interviews with Jay Forrester, & John Sterman (MIT)
10 Thu 15 Apr Strategy by policy (Example, compensation) (Quiz #9) Do financial incentives drive company performance? (HBS)
(Assignment #6) Is performance personal or in the system?
11 Thu 22 Apr Leadership & organization change (Quiz #10) Tradeoffs in response to pressure in service (CMR)
(Assignment #7) Why Hospitals don't Learn from Failures (CMR)
12 Thu 29 Apr The Ethics (Quiz #11) The Hidden Costs of Organizational Dishonesty (MIT)
Why spy on your employees? (HBS)
13 Thu 6 May CASE Presentations
14 Thu 13 May CASE Presentations (Final Reports)
Finals Thu 20 May
A Better Way to Gauge Profitability.
By: Burns, David C., Sale, J. Timothy, Stephan, Jens A., Journal of Accountancy, 00218448,
Aug2008, Vol. 206, Issue 2
The Use of DuPont Analysis by Market Participants.
Soliman, Mark T.1Source:Accounting Review; May2008, Vol. 83 Issue 3, p823-853, 31p.
System dynamics modeling: Tools for learning in a complex world
John D Sterman. California Management Review. Berkeley: Summer 2001. Vol. 43, Iss. 4; p. 8
Asking the right questions.
By: Stewart, Thomas A.. Harvard Business Review, Jun2005, Vol. 83 Issue 6, p10-10, 1p,
Analyzing Relative Costs
By HANNA HAŁABURDA and JAN W. RIVKIN. Harvard Business School Press, Jan 2009.
Product # 9-708-462
The Balanced Scorecard: Measures That Drive Performance.
By: Kaplan, Robert S.; Norton, David R.. Harvard Business Review, Jul/Aug2005, Vol. 83
Issue 7/8, p172-180, 8p,
Competing on Analytics.
By: Davenport, Thomas H.. Harvard Business Review, Jan2006, Vol. 84 Issue 1, p98-107, 10p.
"Building Your Company's Vision," by James C. Collins and Jerry I. Porras;
"Reinventing Your Business Model,"
by Mark Johnson, Clayton M. Christensen, and Henning Kagermann;
"Blue Ocean Strategy,"
by W. Chan Kim and Ren e Mauborgne;
"The Secrets to Successful Strategy Execution,"
by Gary L. Neilson, Karla L. Martin, and Elizabeth Powers;
"Using the Balanced Scorecard as a Strategic Management System,"
by Robert S. Kaplan and David P. Norton;
"Transforming Corner-Office Strategy into Frontline Action,"
by Orit Gadiesh and James L. Gilbert;
"Turning Great Strategy into Great Performance,"
by Michael C. Mankins and Richard Steele
"Who Has the D? How Clear Decision Roles Enhance Organizational Performance,"
by Paul Rogers and Marcia Blenko.