Strategic Leadership and Management
BUS 403
Learner’s Guide
University of Mary
Gary Tharaldson School of Business
and
Centers for Accelerated & Distance Education
Dr. Shanda Traiser
March, 2012
Page 1
Learner’s Guide Contents
Course Syllabus and Student Learner Guide
Handouts and Toolbox
Dr. Shanda Traiser
March, 2012
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3
12
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UNIVERSITY OF MARY
Prefix/Course No. BUS 403
Course Title
Strategic Leadership and Management
Instructor/s
Tim Wiedrich
Credit Hours
3
Course Format: Face-to-Face/Accelerated or Online/Accelerated
Contact Information
Phone, text and email
Phone 701-527-5395
U-Mary Email Address twwiedrich@umary.edu
Required Text: This course will use an online textbook and simulation package. Students will need an
access code can be purchased through the University of Mary Bookstore. Contact the bookstore via email
or phone and let them know you are taking BUS 403 – Strategic Leadership and Management. Once you
have your access code from the bookstore, log on to the Glo-Bus website at www.glo-bus.com. You will
need both the access code and a registration code which will be provided to you by your instructor to be
able to create a student account and access/print off the materials. Please check your email for the
access code from your instructor.
When all students have access and have registered for the Glo-Bus text and simulation, the instructor will
assign students to teams in which the co-managers will make strategic decisions and run an international
digital camera company.
When you have access to the Glo-Bus website, please read (print if desired) the Participant’s Manual for
the simulation. See the course schedule for specific assignments.
Course Description:
From the University of Mary 2010-2011 Bulletin: Effective managers need to know how to make effective
decisions. This course uses case studies to explore the analysis, formulation, and implementation of
strategies. Prerequisites: ACC 101, 102, BUS 203, 204, 215, 333, 362 or instructor consent.
Expanded description…
This course will provide students with the knowledge, skills and ability to formulate, implement and
evaluate strategies. As the capstone course for business majors, students will integrate knowledge from
prior business courses using strategic management techniques to make objective decisions and justify
them through oral and written communication.
Students will play a major role in the learning process through class discussion and debates and a handson simulation involving the formulation and execution of a strategic plan with a team of co-managers.
Critical thinking, logical decision-making and justification of those decisions will be the focus.
Relationship to the University of Mary Servant Leadership Experience
University of Mary Mission Statement:
The University of Mary exists to serve the religious, academic, and cultural needs of people in this region
and beyond. It takes its tone from the commitment of the Sisters of Annunciation Monastery. These
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March, 2012
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Sisters founded the University and continue to sponsor it today. It is Christian, it is Catholic, and it is
Benedictine.
Gary Tharaldson School of Business Mission Statement:
Incorporating the Christian, Catholic, and Benedictine values of the University of Mary, the Gary
Tharaldson School of Business provides quality baccalaureate and masters degree programs to educate
and prepare students to positively contribute to their professions and communities as ethical servant
leaders. Using a philosophy of continuous improvement, the Gary Tharaldson School strives to be
innovative and responsive to the changing needs of students, faculty and the business community
through experience-based curricula.
Servant Leadership Experience: Servant leadership experiences are based on character building
relationships integrated with a solid understanding of what it is to be a servant leader with Jesus Christ as
model and the Benedictine values of community, hospitality, moderation, prayer, respect for persons, and
service. These values are foundational in character building, ethical decision making, and the integration
of the intellectual, spiritual, emotional, and physical aspects of life.
Benedictine Experience:
Although communal life inspired by the Rule of St. Benedict stores a vast treasury of Benedictine values,
six of these are of particular importance for our life here at the University of Mary . . . Father James P.
Shea, President, University of Mary
 Community – Striving together for the common good and growing in relationship with God, one
another, and self [Rule of Benedict 33 – “Let all things be common to all.”]
 Hospitality – Receiving others as Christ with warmth and attentiveness [Rule of Benedict 53 –
“Let all be received as Christ.”]
 Moderation – Honoring all of God’s creation and living simply with balance and gratitude [Rule of
Benedict 31 – “Regard all things as sacred and do everything with moderation.”]
 Prayer- Attending to the mystery and sacredness of life, abiding in the divine presence, listening
and responding to God [Rule of Benedict 4 – “Listen intently to holy readings. Give yourself
frequently to prayer.”]
 Respect for Persons – Recognizing the image of God in each person and honoring each one in
their giftedness and limitations [Rule of Benedict 4 – “Honor everyone and never do to another
what you do not want done to yourself.”]
 Service – Meeting the needs of others in the example of Jesus the servant leader [Rule of
Benedict 35 – “The members should serve one another.”]
Relationship of the course to the Benedictine values:
The six Benedictine values – community, hospitality, respect for others, prayer, service and moderation
will be addressed in this course in the context of servant leadership and how it fits into the world of
business and strategic management.
Competence Experience:
When students graduate, they are competent in four areas essential for them to function in careers and
lead meaningful lives:
 Spirituality and Ethics – Draw upon spiritual, philosophical, religious and Benedictine traditions to
express and act upon a principled set of values.
 Communication – Read, write, listen and speak effectively to gain and share meaning in a diverse
world.
 Critical Thinking – Analyze, synthesize, and evaluate ideas and information from multiple
perspectives to make decisions and solve problems.
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March, 2012
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
Global Stewardship – Respect and be critically aware of oneself and the diverse world to protect
and strengthen natural, cultural and social environments.
For students to acquire proficiency in these competences, continual assessment of learning in an
atmosphere of openness and free inquiry is promoted.
Course Outcomes:
Course Outcomes:
Upon completion of this
course, students will be
able to:
Describe the strategic
management process
University Concepts
Addressed
Program Competencies
Addressed
Assessment
Method(s)
Communication,
Spirituality & Ethics,
Critical Thinking, Global
Stewardship
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
Quizzes, exams,
written assignments,
oral presentations.
Define and give
examples of key terms in
strategic management
Spirituality & Ethics,
Critical Thinking
Write good vision and
mission statements
Spirituality & Ethics,
Critical Thinking,
Communication
Conduct an effective
external strategic
management audit
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
Conduct an effective
internal strategic
management audit
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
Formulate strategic
objectives
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
Dr. Shanda Traiser
March, 2012
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Page 5
Utilize various tools to
evaluate and choose
among alternative
strategies
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
Explain why strategy
implementation is difficult
and discuss ways to
improve
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
Discuss various options
for capital funding
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
Perform financial
analysis in the context of
strategic management
Critical Thinking,
Communication
Describe how the
balanced scorecard
approach can be used
as a tool of strategy
evaluation
Spirituality & Ethics,
Critical Thinking,
Communication, Global
Stewardship
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Accounting, Marketing,
Finance, Management,
legal/social environment,
global environment,
ethics, decision-support,
communication,
integration
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Quizzes, exams,
written assignments,
oral presentations,
case studies.
Major Assignments: (Learning Experiences to Achieve Course Outcomes)
There are a number of different items that will be included in your grade. Below is a brief description;
however, you will find more detailed information and instructions on the my.umary.edu site for the course.



Online quizzes will be completed after each chapter. Each quiz is 15 to 20 questions long,
and students can do the quizzes up to three times. The average grade of all three attempts
will be recorded. The AVERAGE score of all of the chapter quizzes will be used as a
component of the final grade.
Two online exams will be completed: the first on chapters 1 – 7; the second on chapters 8 -12
There will be two additional quizzes covering material related to the simulation exercise. The
first will cover the content of the participants’ guide; the second will cover how to interpret the
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March, 2012
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




status reports of the industry which show various measures for each of the companies being
run within the class.
Students will be assigned to teams as co-managers of a simulated company that
manufactures and sells digital cameras on a global basis. Each week, co-managers will be
asked to address questions of the reading material/discussion topics as how to apply the
concepts to strategic decisions for their camera company. (Team Chapter End Exercises)
The teams will enter decisions approximately twice a week, review the outcome of their
decisions as well as the decisions of the other teams in the class. The overall performance of
each teams company will contribute 25% to each team member’s grade, so take this aspect
of the course seriously.
Each team will prepare a final presentation of their company outcomes at the end of the
course.
Students will evaluate their team mates efforts and contributions to running their company
after the team presentation has been submitted. (Peer Evaluation)
Discussion Topics Participation – Each session will have two to three discussion topics
posted by the instructor. Students are expected to post to each discussion topic and to
comment on other students contributions at least once per thread.
Assessment test – Although the grade for this test will not be calculated into your final grade
for the course, it must be completed in order for you to receive a final grade. This is an
important test, as it helps the Gary Tharaldson School of Business and the University of Mary
gather information about our program to be used for continuous improvement efforts going
forward. You may take it any time during this course as noted in the instructions below and
on the my.umary.edu site. Please give it your best effort!
----------------------
Methods for Evaluation and Grading
Grading Scale: (All courses needed to complete the major require a grade of C or higher)
Grades for the course will be assigned based on the following scale:
97+ = A+
93-96 = A
90-92 = A87 – 89 = B+
83-86 = B
80-82 = B77 – 79 = C+
73 – 76 = C
70-72 = C67-69 = D+
63 – 66 = D
60 – 62 = D< 60 = F
Please refer to My.Umary.edu for due dates and instructions for the various items.
Item
1
2
3
Assignment/Activity
Quiz 1
Quiz 2
Exam 1 – chapters 1-5
Dr. Shanda Traiser
March, 2012
Weight
3.5
5
13
Course Outcomes
Assessed
1, 2,
7, 10
1 – 10
Page 7
4
5
6
7
8
9
10
11
Exam 2 – chapters 6-12
Team Chapter End Exercises
Discussion Topics Participation
GloBus Performance
Team Presentation
Average Score on Chapter Quizzes
Peer Evaluation
Peregrine Assessment Test Completion (req’d for final
grade submittal)
13
10
8
25
10
10
2.5
-
1 – 10
1 – 10
1 – 10
1 – 10
1- 10
1- 10
1-10
100%
Activity 11 in this course is to complete the CPC-based Comprehensive Exam provided by Peregrine
Academic Services. The exam results are used to measure program-level learning outcomes as required
by accreditation authorities. You are required to complete the exam in order to complete this course; your
instructor will not provide a final grade until this assessment is complete. You may complete it at any time
prior to the last night of class. We need you to do your best in order for us to have the best possible data
for our continuous improvement process.
The 120-question online test is administered by Peregrine Academic Services. Please go to
http://www.peregrineacademics.com/umary enter access code UMARY-1001 in the registration section,
and complete the exam self-registration process. The hyperlinked password is shown at the end of the
registration process and you will also receive the password by e-mail. You must complete the exam by
the due date assigned by your course professor. At the end of the exam, please print and save the
completion certificate and return to your course professor.
Assessment Test by Peregrine – Registration Instructions
The test must be completed within 48 hours of starting the test. Allow approximately 1 ½ to 2 hours for
completion of the test.
1. Select www.PeregrineAcademics.com/umary
2. Enter case-sensitive password UMARY-1001 (on right side of screen under Self-Registration for
Passwords)
3. Select View Registration.
4. Select your designated course.
5. Select Review Your Selection(s) and Proceed to Checkout.
6. Select Proceed to Checkout.
7. Enter Course Start Date, Program, Name, and your E-mail address.
8. Select Review Registration(s).
9. Select Complete Order.
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March, 2012
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10. To take exam:
a. Select the hyperlink under Course/Exam heading.
b. When finished, print completion certificate and provide to your instructor.
Expectations
Since this is a 3 semester credit level course, you can expect to spend approximately 9 hours per week
instructional time and another 18 hours per week studying outside of instructional time. Instructional time
includes reading and responding in the discussion board.
Attendance Policy
Facilitators are required to maintain reports of student attendance and to report absences for each
course. At the request of the course facilitator, students may be administratively dropped from the course
if they do not attend the initial two weeks of class (for online students complete coursework and
participate in online discussions) and have not been in contact with the course facilitator by the close of
the second week (last day to drop a course without a grade). Students who do not enter the classroom
for two classroom or participate in the online coursework and discussion for online courses without an
approved excused absence, may also be administratively withdrawn from the class.
Assignment & Exam Policy/ies
All assignments are to be completed and submitted by the date they are due. No extensions can be
granted for the class or online discussions. All other assignments completed and submitted after assigned
deadlines are subject to a 10% reduction in points. Make up assignments for excused absences will be
allowed if completed within 5 days of the regular schedule times. No credit will be given beyond 5 days of
the due date. All make-ups are to be given at the instructor’s discretion.
Statement on Academic Honesty:
The student who cheats perpetrates an intellectual fraud which betrays his or her own potential,
cheapens the honest achievements of other students, and undermines the integrity of the college
community. Plagiarism is a form of cheating. Students who violate academic honesty fall under the
Academic Integrity policy and are subject to any of the sanctions under that policy including removal from
their programs of study or dismissal.
Policy:
1. The instructor will initiate action against a student found cheating while enrolled in a course within
seven days of discovery of the infraction. The instructor will formally notify the student and record the
action.
2. The instructor may apply any of the following sanction to a student found to have cheated during the
term of the course.
a. The student will receive a zero for the work in question.
b. The student will be given another opportunity to demonstrate knowledge or skills.
c. The student will be expelled from class with a failing grade.
3. The instructor may recommend additional sanctions to the student’s Program Director, the student’s
Division Chair or Dean, or the Office of Academic Affairs.
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March, 2012
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4. Within seven days after receiving notice from an instructor of an infraction, the student accused of
cheating may appeal the decision following the university Academic Appeal Policy.
Channel for Communication Relating to this Course [provide the name of the individual for each
person in the channel]
Instructor > Dean > Assistant VP Academic Affairs > VP Academic Affairs
Statement Regarding Reasonable Accommodations
Students with disabilities who have need of accommodations are responsible for submitting an application
to the Office of Student Accessibility Services. As part of the application process the students must also
provide documentation of their disability or diagnosis, which also should include a statement regarding
related functional limitations for any accommodation requested. All documentation must be current and
must be provided by a qualified professional. Applications, documentation, and requests for
accommodations should be submitted to the Director of Student Accessibility Services at least 60 days
prior to the date needed. Applications for accommodations due to TEMPORARY disability resulting from
unexpected accident, injury, illness, hospitalization, etc. should also be submitted to the same office.
Applications are available from the Student Accessibility Services Office, located in the Benedictine
Center for Student Leadership, The University of Mary, Bismarck, ND. Please contact Sister Madelyn
Louttit, Director of Student Accessibility Services; (701-355-8264; mjlouttit@umary.edu for further
information.
Tentative content outline including:
Please note: specific due dates will be established and communicated by your instructor.
Session/
Week
Week 1
Individual
Assignments
Week 1
Team
Assignments
Week 2
Individual
Assignments
Week 2
Team
Assignments
Week 3
Individual
Assignments
Week 3
Team
Assignments
Week 4
Individual
Assignment
-Read chapters 1, 2 and Glo-Bus Simulation
Participant’s Manual`
-On Glo-Bus Website: Complete Quiz 1, end of chapter
quizzes for chapter 1, 2:
-Select team name
-Complete session 1 team exercises
-Enter practice round 1 decisions into Glo-Bus
-Read Chapters 3, 4, 5
-Complete end of chapter quizzes for 3, 4, 5
Estimated
Time/Activity
- 10 hours
- 3 hours
17 hours
-2 hours
-2 hours
-19 hours
-3 hours
- Complete session 2 team assignments
-Enter decisions for years 6 and 7 for your company
-3 hours
-4 hours
-Read Chapter 6, 7
-Complete end of chapter quizzes for 6, 7
-Complete Quiz 2 on the Glo-Bus Reports
- Complete session 3 team assignments
- Enter decisions for years 8, 9 and 10 for your company
-11 hours
-2 hours
-1.5 hours
-4 hours
-6 hours
-Read Chapters 8, 9, 10
-Complete end of chapter quizzes for 8, 9, 10
-17 hours
-3 hours
Dr. Shanda Traiser
March, 2012
Total Weekly
Time
29 hours
24.5 hours
27 hours
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Assignments
Week 4
Team
Assignments
Week 5
Individual
Assignments
Week 5
Team
Assignments
- Complete Exam 1 - Chapters 1 – 7
- Complete session 4 team assignments
- Enter year 11 and 12 for your company
-1.5 hours
-4 hours
-4 hours
-Read Chapters 11, 12
- Complete end of chapter quizzes for 11, 12
- Complete Exam 2 – Chapters 8 – 12
-Complete end-of-game peer evaluation of teammates
- Enter year 13 decisions for your company
- Prepare and present Team Presentation
-9 hours
-2 hours
-1.5 hours
-1 hours
-2 hours
-6 hours
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March, 2012
21.5 hours
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Handout A – Session 1 In-class Exercises
Chapter 1:
1. What is our company’s current situation? A substantive answer to this question should cover
the following issues:
a. Is your company is good, average, or weak competitive position vis-a’vis rival digital
camera companies?
b. Does your company appear to be in sound financial condition?
c. What problems does your company have that need to be addressed?
2. Where do we want to take the company during the time we are in charge? A complete
answer to this question should say something about each of the following:
a. What goals or aspirations do you have for your digital camera company?
b. What do you want the company to be known for?
c. How do you want your company to be regarded?
d. What market standing would you like your company to have after the first five
decision rounds?
e. By what amount or percentage would you like to increase total profits of the company
by the end of the final decision round?
f. What kinds of performance outcomes will signal that you and your co-managers are
managing the company in a successful manner?
3. How are we going to get there? Here you need to single out which of the basic strategic and
competitive approached discussed in this chapter that you intent (at least initially) to pursue
and indicate what kind of competitive advantage over rivals that you are tentatively intending
to try to achieve.
Chapter 2:
1. Meet with your co-managers and prepare a strategic vision statement for your digital camera
company. It should be at least one sentence long and no longer than a vrief paragraph. When
you are finished, check to see if your vision statement is in compliance with the do’s and
don’ts set forth in Table 2.2. If not, revise accordingly. What would be a good slogan that
captures the essence of your strategic vision and that could be used to help communicate the
vision to company personnel, shareholders, and other stakeholders?
2. What are your company’s financial objectives?
3. What are your company’s strategic objectives?
Dr. Shanda Traiser
March, 2012
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Handout B – Session 2 In-class Exercises
Chapter 3:
1. What are the “weapons of competition” that digital camera rivals in your industry can use to gain sales
and market share? See Figure 3.4 to help you identify the various competitive factors.
2. What are the factors affecting the intensity of rivalry in the industry in which your company is
competing? Use Figure 3.4 and the preceding discussion to help you in pinpointing the specific factors
most affecting competitive intensity. Would you characterize the rivalry and jockeying for better market
position, increased sales and market share among the companies in your industry as fierce, very strong,
strong, moderate, or relatively weak? Why?
3. Based on the strategic group maps for each of the four geographic regions shown in the most recent
issue of the Competitive Intelligence Reports, which digital camera companies do you believe are in the
most attractive positions? Which companies are the most weakly positioned? Which camera companies
do you believe are likely to try to move to a different position on the strategic group map for this
geographic regions? What specific actions do these assessments indicate that your company should
consider taking?
Most attractively positioned companies:
No. America
Latin America
Asia-Pacific
Europe-Africa
Asia-Pacific
Europe-Africa
Asia-Pacific
Europe-Africa
Least attractively positioned companies:
No. America
Latin America
Companies most likely to try to move to a different position:
No. America
Latin America
Actions we may want to consider taking based on the above assessments.
Chapter 4 Exercises
1. Using the formulas in Table 4.1 and the data in your company’s financial statements for the most
recent year available, calculate the following measures of financial performance for your company:
a. Operating profit margin
b. Return on total assets
c. Current ratio
d. Working capital
e. Long-term debt-to-capital ratio
f. price-earnings ratio
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March, 2012
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2. Based on company’s latest financial statements and all of the other available data regarding its
performance that appear in the latest GLO-BUS Statistical Review, list the three measures of financial
performance on which your company did “best” and the three measures on which your company’s
financial performance was “worst”.
3. What are the key elements of your company’s value chain? Refer to Figure 4.3 in developing your
answer.
4. How favorably do your company’s costs compare on the benchmarking data provided in the most
recent year’s GLO-BUS Statistical Review? On how many of the benchmarking measures were your
company’s costs below the industry average? On how many of the benchmarking measures were your
company’s costs above the industry average? Based on the benchmarking data, how strong on a scale of
1 to 10 (where 1 = very weak and 10 = very strong) is your company’s cost competitiveness? Are there
any areas where you and your co-managers should take actions to lower costs and improve your
company’s relative cost position?
Chapter 5 Exercises
1. Which of the five basic competitive strategies best characterize your digital camera company’s
strategic approach to competing successfully?
2. Which rival camera companies appear to be employing a low-cost provider strategy?
3. Which rival companies appear to be employing a broad differentiation strategy?
4. Which rival companies appear to be employing some type of focus strategy?
5. Which rival companies appear to be employing a best-cost provider strategy?
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March, 2012
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Handout C – Session 3 In-class Exercises
Chapter 6
1. What offensive strategy options discussed in this chapter does your digital camera company have?
Identify at least two offensive moves that your company should seriously consider to improve the
company’s market standing and financial performance?
2. What defensive strategy moves should your company consider in the upcoming decision round?
Identify at least two defensive actions your company has taken in the past one or two decision rounds.
3. What is your company’s strategy regarding outsourcing the assembly of camera? What are the
advantages of outsourcing digital camera assembly (especially in Qtr 3 of each year)? What do you see
as the disadvantages of outsourcing the assembly of some of your cameras (especially in Qtr 3 of each
year)?
4. If your company had the option to merge with or acquire other digital camera companies in your
industry, which rival companies would you like to acquire or merge with? Would it be more financially
advantageous to your company’s shareholders to acquire a very successful rival company (which would
likely cost substantially more money, especially if it has a relatively high stock price) or a struggling
company (which could probably be acquired for a “bargain price” if its stock price is depressed)? Explain.
Chapter 7
1. Does your digital camera company compete in a world market arena characterized by multi-country
competition or global competition? Explain why.
2. Which of the strategy options for competing in global markets discussed in this chapter is your
company employing?
3. Is your company’s practice to ignore exchange rate changes or to adapt your strategy and decisions to
(a) capitalize on favorable exchange rate changes (especially if the change is large) and (b) to minimize
the adverse impact of unfavorable exchange rate changes? Identify at least two specific actions that your
company can take to lessen the impact of unfavorable exchange rate changes on your company’s
financial performance.
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March, 2012
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Handout D – Session 4 In-class Exercises
Chapter 8
1. In the event your digital camera company had the opportunity to diversify into other products or
business of your choosing, would you option to pursue related diversification, unrelated diversification, or
a combination of both? Explain why?
2. If your company opted to pursue a strategy of related diversification, what industries or product
categories could your digital camera company diversity into that would allow it to achieve economies of
scope? Name at least two or three such industries/product categories and indicate the specific kinds of
cost savings that might accrue from entry into each of these businesses/product categories.
3. If your digital camera company opted to pursue a strategy of related diversification, what industries or
product categories could your company diversity into that would allow your company to capitalize on
using your company’s present brand name and corporate image to good advantage in these newly
entered businesses or product categories? Name at least two or three such industries or product
categories and indicate the specific benefits that might be captured by transferring your company’s brand
name to each of these other businesses/product categories.
Chapter 9
1. Is your digital camera company’s strategy ethical? Why or why not? Is there anything that your
company has done or is now doing that could legitimately be considered as “shady” by your competitors?
Chapter 10
1. What specific actions, if any, have you and your co-managers taken to develop core competencies or
competitive capabilities that can contribute to good strategy execution and potential competitive
advantage? If no such actions have been taken, explain your rationale for doing nothing.
2. What value chain activities are most crucial to good execution of your company’s strategy?
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March, 2012
Page 16
Strategic Management Toolbox
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 1
Coat of Arms – Mission Statement Exercise
Here is a fun way to kick off a mission statement session. It gets people to think creatively, but also
provides a tool to look for themes and common elements that the group may want to reflect in their formal
vision and/or mission statement when they draft them.
Supplies needed:
Flip chart and markers
Step 1:
Develop a list of questions that need to be answered and post them clearly where all
participants can see them. You are some sample questions, but you may modify to the situation if you
feel appropriate.
A mission is the reason for the existence of an activity. It may include:
- Who do you want to be and what is your role?
- What is your product or service or purpose?
- What is your desired scope of operations?
- What are your unique characteristics?
- Who are your customers (internal or external)?
Step 2: Break the group into sub-teams and have each appoint a lead person
Step 3: Give each group a flip chart and markers. Instruct them to draw a coat of arms that contains the
same amount of sections as you have questions.
Step 4: Have the team draw their answers to the questions – one question for each section of the coat of
arms.
Step 5: Have the teams present their pictorial answers to the group.
Step 6: Have the group define any common themes/elements and use as the starting point to draft a
mission statement for the organization.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 2
Future Headline – Vision Statement
This exercise is used to help develop a visions statement.
Supplies needed: Flip chart and markers
Step 1: Divide the group into smaller sub-groups and provide each with a flipchart and markers
Step 2: Explain the assignment:

-Each group is to go to a separate area where they can work on the assignment

-Each group is to draft a headline which answers the question: What would we like to read as
the headline about this organization/company on this date in the year 20xx (put the date 25
years ahead of the current date.)
Step 3: Have the groups reconvene and share their headlines with the group.
Step 4: Look for commonalities and work with the group to develop a consensus headline. This headline
becomes the vision statement.
Step 5: Later in the strategic management process, refer back to this headline. The strategies are the
“how” to achieve the headline.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 3
SWOT Generation
A SWOT analysis is a very common tool used in strategic planning. Basically, it is a list of the
organizations Strengths, Weaknesses, Opportunities and Threats. Here is one way to develop such a list.
Supplies needed:
sticky note pads, markers, flip chart
Step 1: Pass out stick note pads and markers to all of the participants
Step 2: Ask the group to brainstorm strengths of the organization. Have the participants each work
independently for the time being by recording a separate strength on each sticky note.
Step 3: Call the group to attention and use a flip chart or an area of the wall as the “Strength” Section.
Begin to gather the items by asking people to state the various items they had listed. You will find that
many people may have listed the same items. That is fine. As you are gathering the sticky notes, group
them according to commonality. Be sure to encourage people to list all of their items, even if no one else
may have mentioned an item they noted.
Step 4, 5, 6: Repeat the exercise for Weaknesses, Opportunities and Threats
Step 7: Once the list has been agreed upon, have it typed up and distributed and/or write the items on
flipcharts in a neater format.
Please note:
You may find that as the group consolidates and discuss their items, they may decide to move an item
from one category to another, for example, and item initially included as a strength may really be an
opportunity. One of the good thing about sticky notes is that they can easily be moved from one section to
another. The group may also determine that an item(s) should be included under more than one category.
In general, strengths and weaknesses are situations/items that exist today; opportunities and threats are
things that may impact the organization in the future.
Try to ensure that goals or strategies are not listed. For example, do not list as a strength “ability to
expand in global markets.” It would be better to list “global presence” as a strength if it indeed currently
exists and list “global expansion” as an opportunity if that is a future possibility.
This SWOT list will be used in further steps of the strategic planning process.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 4
External Factor Evaluation Matrix (EFE)
Once you have a SWOT analysis, you can help the group organize and par down the list to the items that
are important. An external factor evaluation matrix utilizes the opportunities and threats from the SWOT
listing. This tool provides a good basis for discussion, for prioritizing and for controlling some of the
subjectivity in the strategic management process.
Supplies needed: flip chart, markers, sticky dots
Step 1: Transfer the Opportunities and Threats from the SWOT list previously completed to a flip chart(s).
Number each item as O1, O2, O3, etc., and T1, T2, T3, etc.
Step 2: Instruct the participants that this exercise is to facilitate determination of which opportunities and
threats are most important to the organization in achieving their vision and mission going forward.
Step 3: Hand out 20 sticky dots to each participant. The participants will use these to vote for which items
they believe are most important. Each dot is worth 5 points, so each participant has 100 votes.
Step 4: Ask each person to note on their sticky dots which item they are going to allocate them to.
Having the participants do this individually prior to step 5 helps to prevent “group think” by putting their
votes on the items that others have voted for.
Step 5: Once each participant has determined how they will allocate their votes (all their dots should be
used) they may come up to the flip charts and place them beside appropriate item as they had designated
in step 4.
Step 6: If the list is rather lengthy, you may eliminate the less important items and repeat the exercise.
For example, eliminate the bottom 20 – 30% of the items which got no or few votes. Draft new flipcharts
to be used for voting using the smaller number of items and repeat steps 3 through 5.
Step 7: Calculate the average score for each item. This will become the “weight” to be used in the next
step. The total should be 100. If you need to make minor adjustments to the score to equal 100, do so.
Step 8: This step can be done individually and then consolidated, or can be facilitated as a group
discussion. Now that the group has determined the most important opportunities and threats, and has
weight them according to their importance, each item should be scored on a scale of 1 to 4, with 1 = “not
very well” to 4 = “very well”. For each opportunity, ask the question, “How well do the organization’s
current strategies take advantage of this opportunity?” and grade with the 1 to 4 scale. Repeat for the
threats asking, “How well does the organization’s current strategies prepare for or avoid this threat?”
Step 9: Compute and note the weighted score for each item by multiplying the weight times the grade.
For example, an item with a weight of 25 and a score of 2, the weighted score would be 50.
Step 10: Add all the scores to get a total score for the EFE matrix.
Dr. Shanda Traiser
March, 2012
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Step 11: Explain to the participants that a score of 250 would indicate that the organization is doing an
average job of using their current strategies to take advantage of opportunities and avoiding threats. A
>250 score indicates they are doing a better than average job; < 250 a below average job. Encourage the
participants to look not just at the total score, but at the individual items; which ones pulled the score up;
which ones pulled the score down. These may indicate areas where they want to continue current
strategies, to modify or to develop completely new strategies to improve the overall EFE score.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 5
Internal Factor Evaluation Matrix (IFE)
This exercise and matrix is done the same as the EFE, except this time you are organizing and paring
down the Strengths and Weaknesses list from the SWOT analysis. Be aware that it is often more difficult
for participants to complete the strengths and weakness analysis because these are items internal
organization and it is difficult to be objective. This tool provides a good basis for discussion, for prioritizing
and for controlling some of the subjectivity in the strategic management process.
Supplies needed: flip chart, markers, sticky dots
Step 1: Transfer the Strengths and Weaknesses from the SWOT list previously completed to a flip
chart(s). Number each item as S1, S2, S3, etc., and W1, W2, W3, etc.
Step 2: Instruct the participants that this exercise is to facilitate determination of which strengths and
weaknesses are most important to the organization in achieving their vision and mission going forward.
Step 3: Hand out 20 sticky dots to each participant. The participants will use these to vote for which items
they believe are most important. Each dot is worth 5 points, so each participant has 100 votes.
Step 4: Ask each person to note on their sticky dots which item they are going to allocate them to.
Having the participants do this individually prior to step 5 helps to prevent “group think” by putting their
votes on the items that others have voted for.
Step 5: Once each participant has determined how they will allocate their votes (all their dots should be
used) they may come up to the flip charts and place them beside appropriate item as they had designated
in step 4.
Step 6: If the list is rather lengthy, you may eliminate the less important items and repeat the exercise.
For example, eliminate the bottom 20 – 30% of the items which got no or few votes. Draft new flipcharts
to be used for voting using the smaller number of items and repeat steps 3 through 5.
Step 7: Calculate the average score for each item. This will become the “weight” to be used in the next
step. The total should be 100. If you need to make minor adjustments to the score to equal 100, do so.
Step 8: This step can be done individually and then consolidated, or can be facilitated as a group
discussion. Now that the group has determined the most important opportunities and threats, and has
weight them according to their importance, each item should be scored on a scale of 1 to 4, with 1 = “not
very well” to 4 = “very well”. For each strength, ask the question, “How well do the organization’s current
strategies take capitalize on this strength?” and grade with the 1 to 4 scale. Repeat for the weaknesses
asking, “How well do the organization’s current strategies improve upon this weaknesses?”
Step 9: Compute and note the weighted score for each item by multiplying the weight times the grade.
For example, an item with a weight of 25 and a score of 2, the weighted score would be 50.
Step 10: Add all the scores to get a total score for the IFE matrix.
Dr. Shanda Traiser
March, 2012
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Step 11: Explain to the participants that a score of 250 would indicate that the organization is doing an
average job of using their current strategies to capitalize on their strengths and improving weaknesses. A
>250 score indicates they are doing a better than average job; < 250 a below average job. Encourage the
participants to look not just at the total score, but at the individual items; which ones pulled the score up;
which ones pulled the score down. These may indicate areas where they want to continue current
strategies, to modify or to develop completely new strategies to improve the overall IFE score.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 6 – Elements of a Mission Statement
Many experts believe that mission statements should include nine elements. Although it is very rare to
find a mission statement that addresses all nine of these areas, the list can be a useful tool in helping
facilitate the process of drafting a statement. Ask the participants to the following questions. They may
chose to include or exclude certain items, but it helps them think through of the many items they may
want to consider.
1. Customers – Who are the firm’s customers?
2. Products or services – What are the firm’s major products or services?
3. Markets – Geographically, where does the firm complete?
4. Technology – Is the firm technologically current?
5. Concern for survival, grow, profitability – Is the firm committed to growth and financial soundness?
6. Philosophy – What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
7. Self-concept – What is the firm’s distinctive competence or major competitive advantage?
8. Concern for public image – Is the firm responsive to social, community and environmental concerns?
9. Concern for employees – Are employees a valuable asset of the firm?
Adapted from David, F.R. (2011). Strategic management: Concepts and cases (13th ed.).Upper Saddle
River, NJ: Pearson.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 7 – Tips for Remembering Names
The ability to remember people’s names is a great skill for business persons. As Dale Carnegie once
stated, “Remember that a man's name is to him the sweetest and most important sound in the English
language." Of course, this pertains to women as well.
What a complement it is when someone you admire and you have met at one time remembers your name
upon meeting you again! You probably know some people who have developed their skills in this area.
How do they do it? Here are a few ideas that really do work.

Focus. Upon meeting a person, concentrate on hearing the person’s name, on seeing that
person’s name. Repeat it silently to yourself a couple of times. If you have the opportunity to state
their name aloud during the conversation, do so. For example, at the end of the conversation say,
“Mr. Smith (or Harry depending on the formality of the situation), it was very nice to meet you. I
hope to have a chance to meet with you again in the future.”

Rhyme. Remember the old song from the 1960’s, The Name Game? Kind of the same idea.
Come up with a word that rhymes with the name, especially if it is one that may have more than
one pronunciation, or is difficult to pronounce.

Visualize. This is probably the most valuable tool. Make up a picture in your mind that is
associated with the person’s name. The more ridiculous the picture, the more likely you will be to
remember it in the future. For example, if the person’s name is an animal or a color (i.e. Wolff,
Black) imagine them as that animal, or covered in that color. If the person’s name is associated
with a profession, imagine them performing that professions. Many surnames originated from
occupations. For example, Smith, Schmidt, Schmitz, etc. all had ancestors who at one time were
blacksmiths, and that is how the surname developed. Imagine Joe Smith hammering away on a
piece of metal placed upon an anvil using a huge hammer. Some people also visualize the
person’s initial(s) marked across the person’s forehead. If a famous person, or a person you
already know shares the same name, imagine that person standing next to your new
acquaintance. Create any visual association that you can. You don’t need to tell anyone what it is.
Dr. Shanda Traiser
March, 2012
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 8 – SWOT Matrix
Utilizing previous tools you have helped your group/organization conduct a SWOT analysis, and used it in
the External and Internal Factor Evaluations. Now you will use the SWOT analysis to help the group
generate ideas for possible strategies. This process is very helpful to getting people to think about a
number of options without getting to fixated on one or two categories or a few items. The group will match
the various components from the different categories to accomplish this exercise. Please refer to the
attached example.
Here are the steps:
Step 1: On a white board, black board, flip chart, etc. create a three-by-three table.
Step 2: In the upper two right-hand sections of the table, list the Strengths in one compartment, the
Weaknesses in the other.
Step 3: In the left column, write the Opportunities in the middle section, the Threats in the bottom section.
Step 4: Label each section either SO, ST, WO, or WT as shown in the example.
Step 5: Guide the group in developing strategy ideas which utilizes strengths to take advantage of
opportunities. For each strategy, notate following the strategy statement which strength (or strengths) is
used; which opportunity (or opportunities) that particular strategy would capitalize upon. Record these in
the SO section.
Step 6: Move to the ST section. What strategies could the organization use to utilize their strengths to
overcome or improve upon their weaknesses? List these in the section, notated as explained above.
Step 7: Continue the same exercise for the WO section; what possible strategies could the organization
employ to capitalize upon an opportunity (or opportunities) to overcome or improve upon a weakness?
List and notate.
Step 8: Finish the exercise in the WT section. What strategies could the organization implement that
would avoid or minimize a threat and overcome a weakness?
Please note: The SO and ST sections are very easy to complete. The WO is more difficult, and often it is
very hard for participants to think of strategies for the WT section. If the WO and WT sections are ignored,
the participants may be missing key opportunities to develop meaningful strategies for the organization.
Without using this tool, it may be more probable that the weaknesses and threats do not receive the
proper attention.
Dr. Shanda Traiser
March, 2012
Page 27
SWOT MATRIX
Strengths:
1. Strong brand recognition
2. Cash Reserves
3. Increasing average customer
purchase
etc., etc.
Weaknesses:
1. Low market share
2. Poor distribution network
3. Poor website
etc., etc.
Opportunities:
1. Competitor B in financial
difficulty
2. Population of area served
growing
etc. etc.
SO Strategies
1. Use cash reserves to buy
competitor B (S2, O1)
2. Use cash reserves to open
additional location (S2, O1)
3. Use strong brand to attract
new customers (S1, O2)
etc., etc.
WO Strategies
1. Acquire competitor B (W1,
O1)
2. Etc., etc.
Threats:
1. Competitor A
2. Vendors raising prices
3. Poor economic conditions
etc, etc
ST Strategies
1. Acquire competitor B to better
compete against competitor A.
(S2, T1)
2. Establish customer loyalty
program to continue average
purchase (S3, T3)
etc., etc.
WT Strategies
Dr. Shanda Traiser
March, 2012
1. Redesign website to help
compete against Competitor A.
(W3, T1)
Etc., etc.
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 9
Competitive Profile Matrix (CPM) – used as a tool to help identify a firm’s major competitor and the
strengths and weakness of the both the firm and the competitors. Note: this tool includes both internal
and external issue, but in a broader context than the IFE and EFE matrices.
Supplies needed: flip chart, markers, sticky dots
Step 1: Identify 5 to 10 critical success factors. These items are important for any company competing in
the industry. Examples: market share, product quality, brand recognition, distribution network, supply
network, location, production capacity, etc. This can be facilitated using sticky notes and asking the
participants to write one critical success factor (csf) on each note.
Step 2: Collect and organize into common groups. Allow the group to discuss and allow the addition of
any items they feel may have been missed.
Step 3: Hand out 20 sticky dots to each participant. The participants will use these to vote for which
items they believe are most important. Each dot is worth 5 points, so each participant has 100 votes.
Step 4: Ask each person to note on their sticky dots which item they are going to allocate them to.
Having the participants do this individually prior to step 5 helps to prevent “group think” by putting their
votes on the items that others have voted for.
Step 5: Once each participant has determined how they will allocate their votes (all their dots should be
used) they may come up to the flip charts and place them beside appropriate item as they had
designated in step 4.
Step 6: If the list is rather lengthy, you may eliminate the less important items and repeat the exercise.
For example, eliminate the bottom 20 – 30% of the items which got no or few votes. Draft new flipcharts
to be used for voting using the smaller number of items and repeat steps 3 through 5.
Step 7: Calculate the average score for each item. This will become the “weight” to be used in the next
step. The total should be 100. If you need to make minor adjustments to the score to equal 100, do so.
Step 8: Have the group define who their main competitors currently are. List your company and your
competitor on the top of the matrix (Please refer to the example).
Step 8: This step can be done individually and then consolidated, or can be facilitated as a group
discussion. The most important csf’s have been identified and weighted. Now rate how each company is
doing in regards to each critical success factor and rate using a scale of 4 = major strength, 3 = minor
strength, 2 = minor weakness and 1 = major weakness.
Dr. Shanda Traiser
March, 2012
Page 29
Step 9: Compute and note the weighted score for each item by multiplying the weight times the rating.
For example, an item with a weight of 25 and a score of 2, the weighted score would be 50.
Step 10: Add all the scores to get a total score for each company on the CPM.
Step 11: Facilitate discussion of the completed matrix. Remind participants that because one firm
receives a 3.2 rating and another a 2.8 rating, this does not mean that one is doing 20% better than the
other. These are relative figures. This matrix is used to stimulate ideas for possible strategies by looking
at your organizations strengths, and also areas of vulnerability for both your firm and the competition.
Sample Competitive Profile Matrix
Your firm
Critical
Success
Factors
Competitor A
Weight
Rating
Market
Share
25
2
50
3
75
4
100
Distribution
Network
12
3
36
3
36
4
48
Product
Quality
20
3
20
3
60
3
60
Production
efficiency
28
4
112
2
56
2
56
Supplier
Network
15
3
45
3
45
Total
100
Dr. Shanda Traiser
March, 2012
Score
263
Rating
Score
Competitor B
272
Rating
1
Score
15
279
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BUS 403 – Strategic Leadership and Management
Tool Box – Item 10
Strategic Decision Matrix – used to facilitate decisions regarding which strategies to choose and
prioritize.
Supplies needed: flip chart, markers
Step 1: Using the Internal Factor Evaluation Matrix and the External Factor Evaluation Matrix previously
completed, list the key external opportunities/threats and internal strengths/weakness in the left hand
column of a matrix. Also transfer the weights associated with each item onto this matrix.
Step 2: List two alternative strategies the organization is considering at the top, right columns of the
matrix.
Step 3: Using sticky note voting, or group discussion, determine an attractiveness score (AS) for each
strategy and each IFE/EFE element. This score is determined by asking “how well does this strategy
address this item?” and assigning a score of 1 to 4, where 1 = not attractive, 2 = somewhat attractive, 3
= reasonably attractive and 4 = very attractive. Work row by row in scoring the matrix. Please note that
some possible strategies will not address every particular IFE/EFE item, and a dash should be inserted in
those cases.
Step 4: Calculate a total attractiveness score for each strategy by multiplying the weight x the attractive
score and summing.
Step 5: Repeat with two more strategies until all strategies under serious consideration are scored.
Step 6: Compare the scores of the possible strategies. Strategies receiving the highest score should
warrant the most consideration or priority.
Please see the following very abbreviated example.
Dr. Shanda Traiser
March, 2012
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Sample Strategic Decision Matrix:
Buy property and build
new store
Key Factors
Weight
AS
Renovate existing
store
TAS
AS
TAS
Opportunities
Projected population growth of region –
12%
20
3
60
3
60
Economic incentives for new construction
from city
16
4
64
__
0
Increased traffic on existing street
12
1
12
__
0
Store X opening new store
22
3
66
4
88
Gas prices rising
13
2
26
3
39
Online competition
17
--
0
__
0
8
2
16
3
24
Inventory Turns increased from 3.7 to 4.2
13
2
26
3
39
Knowledgeable Employees
24
3
72
3
72
Store has no web site
30
__
0
__
0
Store needs refurbishing
23
__
0
4
92
2
3
6
3
6
Threats
Total
100
Strengths
Profits increased 2%
Weaknesses
Customer wait time increasing
Total
Dr. Shanda Traiser
March, 2012
100
348
420
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Dr. Shanda Traiser
March, 2012
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