NYU Executive MBA In Finance 2002
Corporate Strategy Analysis
B01:2101:87 Professor Robert Lamb
Spring, 2002 Office: 7-53 KMC: 998-0231
Office Hrs: By Appointment
Fax (212) 995-4235
URL: http// www.stern.nyu.edu/mgt/csa/lamb
USEFUL RESEARCH SOURCES
This is a compressed course because of your schedule. Yet, every subject we
cover may be critical in your careers because business and corporate strategy
decisions and failures impact most firms. That is why business and corporate
strategy decisions and problems are in the business news every day.
Corporate Strategy focuses on managing the multi-business firm to create
corporate advantage, whereas Business Strategy Analysis focused on strategically
managing individual businesses. For example: corporate strategy evaluates
whether Walt Disney should own theme parks, sports teams, restaurants, television
networks, and movie production and how the corporation can add value to each of
its individual businesses. Business strategy analyzes each individual business of
Disney relative to its competitors. For example: ABC (one of Disney’s television
networks) needs a business strategy to succeed against CBS, NBC, Fox and cable TV
We Focus on the Following Topics in this Course
Why do we have Firms? How today’s converging industries impact firms.
What are firm resources? Where do valuable resources come from?
How can resources be shared across multi-businesses to grow value?
What should be the scope of the firm? Should it Build? Buy? Or Ally?
Why do we have multi-business firms? Do they add or subtract value?
What are scale and scope advantages of multi-business firms?
Is there a relation between firm performance and corporate structure?
Is the role for corporate headquarters to centralize or decentralize?
How to best manage the process of mergers, alliances, JVs, franchises?
We compare classic to virtual corporations and to Internet corporations
What are good ways to implement corporate strategies, and why?
Texts and Other Class Materials From the Bookstore
1. Corporate Strategy: A Resource Based Approach (C&M)
by David Collis & Cynthia Montgomery. Irwin McGraw Hill
2. Corporate Strategy Cases & Readings (CSCR)
3M Corporation Case:
Daimler Chrysler Merger Negotiation.
3. Strategy and the Business Landscape (Ghemewat)
4. Business Strategy Analysis Cases and Readings (BSA)
Intel vs. AMD Case and Readings
Browser Wars Handout.
Barco vs. SONY Handout
Handout:General Motors vs. Fisher Body
I will also hand out key news articles & reports for discussion in class.
25% of your grade is a 3 page group Paper on Intel vs. AMD
25% of your grade is a 3 page group Paper on Daimler Chrysler Merger
50% of your grade will be based on your class participation.
It is important that you be prepared for each class discussion.
June 7. Session 1. PM: Converging Industries & Dynamics of Corporate Strategy
1. 4. There are 4 Perspectives on Corporate Strategy: a. The Resource Based View;
b The Transaction Cost Economics View; c. The Market Power View and
d. The Convergence of Technologies Impact on Converging Industries: See Diagram
2. We analyze the impact of today’ technological convergence of industries on the
corporate strategy options of firms. We focus especially upon the Digital Revolution
and the Internet in their combined effects across various industries
I hand out slides on Convergence of Industries
2.Please Read Handout: General Motors vs. Fisher Body Case. Transaction Cost
Economics. Why do firms vertically integrate or enter long term contracts?
Also please read: Ghemawat Ch. 3 Creating Competitive Advantage
3.Why do Firms create and update Vital Resources: Physical Assets, Intangible
Assets & Organizational Capabilities? We analyze why a key strategic corporate
goal is to enhance the value of each business by leveraging key resources, across
many businesses owned by the firm to achieve specific target rates of return on
investment or percentage points of gain in market share.
June 8. Session 2. PM: Compare Intel vs AMD. to the 3M Corporation.
1.Intel vs. AMD Read the Intel case and the AMD and Intel Readings.
Read : Ghemewat ch. 4. “Anticipating Competitive and Cooperative Dynamics”
Technology Ch. 5 in (BSA) p.67-84.What is the mode of competition in this field?
Your 3 page group Paper to be handed in.
I. II. Read: 3M Corporation Case: How 3M develops resources? How does R&D
for innovation affect ROI? Why is Innovation: “A Process of Mindful
Replication”. Also, Please Read: (C&M) p. 134-144 “Managing the Multi-Business
June 14. Session 3. PM. Browser Wars Case and RPG Case
1.Browser Wars Case Technology and Internet Standards Wars
Read Browser Wars handout
2. RPG Company Case: A Conglomerate in India.
Also, Please Read: (C&M) p. 134-144 “Managing the Multi-Business Corporation”
June 15. Session 4. AM: Global Mergers Negotiations: International Conglomerates
1. Analyze Why Daimler proposed the merger? What were Chrysler Expectations?
What do you think of Daimler’s preparations for the Merger & Implementation?
What’s needed to make the merger work? What Strategy for Daimler Chrysler?
Read: Daimler Chrysler Merger Negotiation Case (CSRS) + Mitsubishi article)
All Groups hand in 3-page paper on Daimler Chrysler Merger Negotiation
June 15. Session 5. PM. Managing Alliances, Joint Ventures & Supply Chain Mgt.
1.Managing Alliances and Joint Ventures :
Please Read Handout: “Collaborate with Your Competitors & Win”.
Handouts:: Star Airline Alliance: IBM’s 100,000 alliances.
2. Supply Chain Mgt, Enterprise Resource Planning, Customer Relationship Mgt,
Procurement Mgt, Internet Mgt: Read: My 4 page Slides on: Supply Chain Mgt.
Dear Strategy Students: Because I have now been told that you have already had so
much Business Strategy in you’re your other courses I have refocused this course more
on Corporate Strategy cases and readings.