Tel-Aviv University
Faculty of Management
The Leon Recanati School of Business Administration
Principles of Strategy 1231.2322.07
Spring Semester 2003
Lecturer:
Class schedule:
Office:
Office hours:
Teaching Assistant:
Dr. Tamar Almor
Tuesday 17:15-18:30, room 253
Tel: 03-9634270 (you can leave a message if I am not in)
E-mail: talmor@colman.ac.il; or tamalmor@netvision.net.il
According to appointment
Mr. Shlomo Tarba
Tel: 052 436675
e-mail: tarba@agri.huji.ac.il or shlomo_tarba@yahoo.com
Course objectives
'Principles of strategy' is an introductory course that will help you understand the basic
premises for an organization's success and failure in strategic terms. Strategy is related to all
other organizational aspects, including the various functional strategies, organizational
structure and processes and the firm's financial data and ratios. This course will show you
how to analyze the strategic aspects of the organization and how to implement strategic
decisions. Its objectives are:
1.
To provide you with basic strategic skills. This will allow you to think strategically
about a company, its business position and how it can gain sustainable competitive
advantages.
2.
To build your skills in conducting strategic analysis in a variety of industries and
competitive situations, and especially to provide you with a stronger understanding of
the competitive challenges of a global strategic environment.
3.
To provide you with a basic framework which will allow you to understand better the
functional aspects of the organization about which you will learn in later courses.
Course structure
The course is based on lectures, class discussions, reading material, preparation of case
studies as well as an exam. The course is based largely on in-class learning experiences,
therefore it is recommended strongly to participate in class discussions and oral presentations.
Reading material:
1. Hill, C.W.L. and G.R. Jones, 2001, Strategic Management. Fifth Edition, Houghton
Mifflin Company, Boston.
2. Collection of articles - details will be handed out in class.
Requirements
All students are required to hand in three case study analyses, and take an exam at the end of
the course. Your grade is established as follows:
Case study
15% each - total 45%
Exam
55%
You can work in groups of up to three students. All written assignments may be handed in
either in Hebrew or in English.
Class attendance and participation
Students are expected to participate actively. This means that you have to attend at least 75%
of all classes. In addition you must contribute significantly to in-class analysis of cases. Each
student is expected to be an active participant and to make meaningful comments on cases
being discussed. Merely attending class is not sufficient; attendance is not the same as
participation. Roll is taken at the beginning of each class. Bonus points will be rewarded to
active, smart participants.
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Case study preparation
At the beginning of the lesson in which the case study is discussed, each student hands in a
250 word summary of the case study discussed that week (this may be hand-written English or Hebrew).
Written case analyses are due the week after the case is discussed in class and should
address the specific questions posed in the syllabus only. Analysis of financial and
other data should be presented in appendices. The assignments should be based on
analysis, not present summaries and (ungrounded) opinions of the author(s).
All written analyses are to be typed and to follow correct form, spelling and grammar.
The paper should include a cover page, the name of the authors, the name of the case
study, the date and the name of the instructor.
The paper should not exceed 1500 words (not including appendices). Short, accurate
papers are preferred. Papers can be written in English or in Hebrew.
Class Schedule
Meeting No.
1
18.2.03
Topics
Principles of strategy: process, content and context.
2
25.2.03
Strategic thinking and strategy implementation, Chapter 1
competition, and organizational performance. Basic terms:
VA chain, SCAs, competitive strategy, industry, financial
ratios, business models.
Movie: The Bean Queen
Mission and vision of management, goals and objectives,
Chapter 2
stakeholders and Board of Directors.
Movie: Cisco
Case study: Body shop
3
4.3.03
4
11.3.03
5
25.3.03
6
1.4.03
7
8.4.03
8
29.4.03
9
13.5.03
10
20.5.03
11
27.5.03
12
3.6.03
Reading
'Competition and
business strategy in
historical perspective'
Industry environment
Chapter 3
Competitors, KSF and overall industry attractiveness.
'How competitive
forces shape strategy'
Case study: Cola Wars
Analyzing the firm’s resources and capabilities while using
basic strategic tools.
SCAs and competitive
competitive over time.
Case study: Walmart
strategies,
how
to
Chapter 4
remain Chapter 5
The strategic management process: from strategic thinking
to implementation, how to manage the process of change.
Movie: Castro
Term exam, will take place during class hours
'What is strategy'
Chapters 6, 7
Case study questions
The Body Shop International, Harvard Business School, 1995. No. 9-392032
1. Prepare three mission statements: (1) that reflects Anita Roddick's view, (2) that
reflects shareholders' views; and (3) that reflects franchisers' views. Discuss the
discrepancies between the three mission statements. Can you suggest a mission statement
that reflects the Body Shop as a whole?- Use Abell’s model.
2. Analyze the firm’s profitability, how do you explain its financial performance
compared to the industry?
3. Where will the Body Shop find itself in five years? You can enter the firm's
internet site and check up on its current position.
Cola Wars Continue: Coke Vs. Pepsi in the 1990s HBS 9-794-055
Explain why Coke and Pepsi are so profitable – use Porter’s 5 forces. Why should Coke
and Pepsi buy their bottlers since bottling is less attractive than CP?
1. Define and analyze the industry structure of the industry in which the Cola
companies compete. Use Porter's five forces for the analysis.
2. Analyze industry profitability, which stages of the VA chain are most profitable?
Why?
3. Prepare a strategic plan for the next three years for Coca Cola or for Pepsi Cola
that emphasizes enhancement and development of the company's capabilities and SCAs in
the changing environment.
WalMart Stores’ HBS 9-794-024
1. Discuss the drivers to Walmart’s competitive position. How does the company
achieve cost leadership?
2. How sustainable is the position over time and compared to competition?
3. Prepare a strategic plan for Walmart which will allow the company to enhance and
strengthen it competitive position.