ABM 3201 BUSINESS STRATEGY
2. INSTRUCTOR(s):
George Omiat (BSc Agric, MUK; MSc, Agric Econ, MUK) (Assistant Lecturer).
3. COURSE TYPE and location: B. Agribusiness Management (III); Faculty of Agriculture; Department of
Agricultural Economics and Abgribusiness
4. COURSE STRUCTURE
3 Credit units: 30 lecture hours (2 contact hour per week for 15 study weeks) and 30 Practical/Tutorial hours (2
contact hour per week for 15 study weeks)
5. COURSE DESCRIPTION:
Business strategy. Strategic business unit. Strategy development and implementation. Generic strategies: differentiation,
focus, low cost, pre-emptive move. Growth strategies: market penetration, market development, product development,
diversification and vertical integration. Declining markets/mature market strategies: milk/harvest, hold,
divestment/liquidation. Global strategies: motivations, standardization versus customisation, strategic alliances.
6. COURSE OBJECTIVES:
General Objective
 This module is concerned with how managers develop business strategy under conditions of uncertainty.
Business strategy, its development, formulation and implementation are key issues for firms in the development
of sustainable competitive advantage.
Specific Objective
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To introduce students to a wide range of strategic issues faced by modern business organizations
To introduce students to the theories, techniques and tools used by managers to formulate, implement and
evaluate strategies designed to establish and maintain competitive advantage
7. RECOMMENDED REFERENCES FOR READING
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Richard M.S Wilson Collin Gilligan Strategic Marketing Management. Planning Implementation and Control
Johnson, G, & Scholes, K, (2005), Exploring Corporate Strategy: text and cases, (7th ed Prentice Hall), ISBN 0
273 678344, Library Reference 658.16 J67
Besanko, D; Dranove, D; Shanley, M and Schefer S, Economics of Strategy, (3rd ed Wiley & Sons),ISBN 047121213X
Porter M (1998), The Competitive Advantage of Nations, (MacMillan), ISBN 0333-736427, LibraryReference
338.018 5P 847
8. COURSE CONTENT, METHODS OF INSTRUCTION AND TOOLS AND REQUIRED
TOPIC
CONTENT
METHOD OF
TOOLS/ NEEDED
INSTRUCTION / Time
allocated
1.What Is Strategy and
Lecture (2 hr)
LCD Projector,
 What Is Strategy?
Why Is It Important?
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2. What Is Strategy and
Why Is It Important?
Cont’d
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3.Analyzing a Company’s
External Environment
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4.Analyzing a Company’s
External Environment
cont’d
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Identifying a Company’s Strategy
Strategy and the Quest for
Competitive Advantage
Strategy Is Partly Proactive and
Partly Reactive
Tutorial: How to identify a company’s
strategy
Strategy and Ethics: Passing the
Test of Moral Scrutiny
The Relationship Between a
Company’s Strategy and Its Business
Model
What Makes a Strategy a Winner?
Why Are Crafting and Executing
Strategy Important?
Tutorial: Relating a company’s
strategy to the business model
The Strategically Relevant
Components of a Company’s
External Environment
Thinking Strategically About a
Company’s Industry and Competitive
Environment
What are the Industry’s Dominant
Economic Features?
What Kinds of Competitive Forces
are Industry Members Facing?
The Rivalry Among Competing
Sellers
The Potential Entry of New
Competitors
Tutorial: How to analyze the
company’s external environment
Competitive Pressures from the
Sellers of Substitute Products
Competitive Pressures Stemming
from Supplier Bargaining Power and
Supplier-Seller Collaboration
Competitive Pressures Stemming
from Buyer Bargaining Power and
Seller-Buyer Collaboration
Determining Whether the Collective
Strength of the Five Competitive
Forces is Conducive to Good
Profitability
What Factors are Driving Industry
Change and What Impacts Will They
Have?
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
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5.The Five Generic
Competitive Strategies
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6. The Five Generic
Competitive Strategies
Cont’d
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7. The Five Generic
Competitive Strategies
Cont’d
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8. Beyond Competitive
Strategy Other Important
Strategy Choices
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Tutorial: Examining the strengths of
the Five competitive forces
Five Competitive Strategies
Low-Cost Provider Strategies
The Two Major Avenues for
Achieving a Cost Advantage
The Keys to Success in Achieving
Low-Cost Leadership
When a Low-Cost Provider Strategy
Works Best
The Pitfalls of a Low-Cost Provider
Strategy
Tutorial: Low Cost Provider strategies
Differentiation Strategies
Types of Differentiation Themes
Where along the Value Chain to
Create the Differentiating Attributes
Achieving a Differentiation-Based
Competitive Advantage
The Importance of Perceived Value
Keeping the Cost of Differentiation in
Line
When a Differentiation Strategy
Works Best
The Pitfalls of a Differentiation
Strategy
Best-Cost Provider Strategies
The Big Risk of a Best-Cost Provider
Strategy
Tutorial: Differentiation strategies
Focused (or Market Niche) Strategies
A Focused Low-Cost Strategy
A Focused Differentiation Strategy
When A Focused Low-Cost or
Focused Differentiation Strategy is
Attractive
The Risks of a Focused Low-Cost or
Focused Differentiation Strategy
The Contrasting Features of the Five
Generic Competitive Strategies
Tutorial: Focused/niche strategies
Strategic Alliances and Collaborative
Partnerships
The Pervasive Use of Alliances
Why and How Strategic Alliances are
Advantageous
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
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9. Beyond Competitive
Strategy Other Important
Strategy Choices
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Alliances and Partnerships with
Foreign Companies
Why Many Alliances are Unstable or
Break Apart
The Strategic Dangers of Relying
Heavily on Alliances and
Collaborative Partnerships
Merger and Acquisition Strategies
Vertical Integration Strategies:
Operating Across More Stages of the
Industry Value Chain
The Strategic Advantages of Vertical
Integration
The Strategic Disadvantages of
Vertical Integration
Outsourcing Strategies: Narrowing
the Boundaries of the Business
Advantages of Outsourcing
The Pitfalls of Outsourcing
Tutorial: Strategic Alliances and
Collaborative Partnerships; Merger
and Acquisition Strategies; Vertical
Integration Strategies and
Outsourcing Strategies
Using Offensive Strategies to Secure
Competitive Advantage
Basic Types of Offensive Strategies
Choosing Which Rivals to Attack
Choosing the Basis for Attack
Using Defensive Strategies to Protect
the Company’s Position
Blocking the Avenues Open to
Challengers
Signaling Challengers that Retaliation
is Likely
Strategies for Using the Internet as a
Distribution Channel
Using the Internet Just to
Disseminate Product Information
Using the Internet as a Minor
Distribution Channel
Brick-and-Click Strategies: An
Appealing Middle Ground
Strategies for Online Enterprises
Choosing Appropriate FunctionalArea Strategies
First-Mover Advantages and
Lecture (2 hr)
Tutorial (2 hrs)
LCD Projector,
BB/Chalk,
Computer
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10. Competing in Foreign
Markets
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11. Competing in Foreign
Markets Cont’d
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Disadvantages
Tutorial: Offensive Strategies;
Defensive Strategies; Strategies for
Using the Internet as a Distribution
Channel; Choosing Appropriate
Functional-Area Strategies; FirstMover Advantages and
Disadvantages
Why Companies Expand Into Foreign
Markets
The Difference between Competing
Internationally and Competing
Globally
Cross-Country Differences In
Cultural, Demographic, and Market
Conditions
The Potential for Locational
Advantages
The Risks of Adverse Exchange Rate
Fluctuations
Host Government Restrictions and
Requirements
The Concepts of Multicountry
Competition and Global Competition
Strategy Options for Entering and
Competing in Foreign Markets
Export Strategies
Licensing Strategies
Franchising Strategies
A Multicountry Strategy or a Global
Strategy?
Tutorial: Competing in Foreign
Markets quest for competitive
advantage
The Quest for Competitive Advantage
in Foreign Markets
Using Location to Build Competitive
Advantage
Using Cross-Border Transfer of
Competences and Capabilities to
Build Competitive Advantage
Using Cross-Border Coordination to
Build Competitive Advantage
Profit Sanctuaries, Cross-Market
Subsidization, and Global Strategic
Offensives
Using Cross-Market Subsidization to
Wage a Strategic Offensive
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
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12. Tailoring Strategy to
Fit Specific Industry and
Company Situations
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Global Strategic Offensives
Strategic Alliances and Joint
Ventures with Foreign Partners
The Risks of Strategic Alliances with
Foreign Partners
Making the Most of Strategic
Alliances with Foreign Partners
Competing in Emerging Foreign
Markets
Strategy Implications
Strategies for Local Companies in
Emerging Markets
Tutorial: Competing in Emerging
Foreign markets
Strategies for Competing in Emerging
Industries
Challenges When Competing in
Emerging Industries
Strategic Avenues for Competing in
an Emerging Industry
Strategies for Competing in
Turbulent, High-Velocity Markets
Strategic Postures for Coping with
Rapid Change
Strategic Moves for Fast-Changing
Markets
Strategies for Competing in Maturing
Industries
Industry Changes Resulting from
Market Maturity
Strategic Moves in Maturing
Industries
Strategic Pitfalls in Maturing
Industries
Strategies for Firms in Stagnant or
Declining Industries
Strategies for Competing in
Fragmented Industries
Reasons for Supply-Side
Fragmentation
Strategy Options for a Fragmented
Industry
Tutorial: Strategies for competing in
Emerging industries; Turbulent high
velocity markets
Lecture (2 hr)
Tutorial (2 hrs)
LCD Projector,
BB/Chalk,
Computer
13. Tailoring Strategy to
Fit Specific Industry and
Company Situations
Cont’d
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14.Diversification
Strategies for Managing
a Group of Businesses
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15.Diversification
Strategies for Managing
a Group of Businesses
Cont’d
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Strategies for Sustaining Rapid
Company Growth
The Risks of Pursuing Multiple
Strategy Horizons
Strategies for Industry Leaders
Strategies for Runner-Up Firms
Obstacles for Firms with Small
Market Shares
Strategic Approaches for Runner-Up
Companies
Strategies for Weak and CrisisRidden Businesses
Turnaround Strategies for
Businesses in Crisis
Liquidation – The Strategy of Last
Resort
End-Game Strategies
10 Commandments for Crafting
Successful Business Strategies
Matching Strategy to Any Industry
and Company Situation
Tutorial: Strategies for competing
sustaining growth; matching strategy
to any industry and company
situation
When to Diversify
Factors that Signal When It is Time to
Diversify
Building Shareholder Value: The
Ultimate Justification for Diversifying
Strategies for Entering New
Businesses
Acquisition of an Existing Business
Internal Start-Up
Joint Ventures and Strategic
Partnerships
Choosing the Diversification Path:
Related Versus Unrelated
Businesses
Tutorial: When to Diversify
The Case for Diversifying into
Related Businesses
Cross-Business Strategic Fits Along
the Value Chain
Strategic Fit, Economies of Scope,
and Competitive Advantage
The Case for Diversifying into
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
Lecture (2 hr)
Tutorial (2 hrs)
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
LCD Projector,
BB/Chalk,
Computer
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Unrelated Businesses
The Merits of an Unrelated
Diversification Strategy
The Drawbacks of Unrelated
Diversification
Combination Related-Unrelated
Diversification Strategies
Evaluating the Strategy of a
Diversified Company
After a Company Diversifies: The
Four Main Strategy Alternatives
Strategies to Broaden a Diversified
Company’s Business Base
Divestiture Strategies Aimed at
Retrenching to a Narrower
Diversification Base
Strategies to Restructure a
Company’s Business Lineup
Multinational Diversification
Strategies
Tutorial: Divestiture Strategies
9. SUMMARY OF TIME NEEDED
Lectures
Tutorials (and assignments)
10. COURSE ASSESSMENT:
Continuous assessment
(Quizzes):
Continuous assessment
(Tutorial/Practical):
Continuous assessment (Midsemester Test):
University Examination:
30 hrs
30 hrs
There will be Quizzes arising from Lectures covered
10%
For each Tutorial/Practical there will be an assignment
10%
There will be 2 mid semester tests
20%
Final examination
60%