UNIVERSITY OF WASHINGTON, BOTHELL
BBUS 470: Business Policy and Strategic Management
Autumn 2006
Dr. Kevin Laverty
Email: laverty@u.washington.edu
Office: UWB2-325
Phone: 425.352.5338
Office Hours:
TU & TH Noon.-1pm
TU & TH 8-9 pm (by appointment only)
Or by appointment
Kristen Spangler, MBA
Email: kspangler@uwb.edu
Office: UWB1-380
Phone: 425.352.3664
Office Hours:
TU & TH 9:30am-1pm
TU & TH 3:30pm-5:30pm
Or by appointment
Text:
Hitt, Ireland and Hoskisson, Strategic Management, 7th edition
Case Packet: Available at the Bookstore
COURSE DESCRIPTION
In this course we will learn about a firm’s business policy – from how it chooses strategies to
achieve its objectives. In particular, we will work to understand how organizational
competencies can lead to sustainable competitive advantages, how industry competitive dynamics
erode those advantages, and the integrative nature of policy decisions.
In this course, you will deal with a real business situation. The strategic problems will be
amorphous and will contend with other problems for your attention. Having a neatly
prescribed problem will be unusual; having to decide which among a host of problems
requiring response will be more typical. This course mirrors the real world of business in that
you will determine what the problems are, which are important and which are not. You will
choose what theory and methods you have learned in this and other courses to resolve specific
problems. You will assess which of many possible approaches to a situation will be best for a
particular firm.
The course is demanding. Rigor and clarity are required. You will need to learn strategic
theories; draw on what you have learned in other business courses; conduct both quantitative
and qualitative analyses; apply book knowledge to real-world phenomena; think critically,
logically and integratively; and communicate well.
COURSE DESIGN
The main learning tools for the course will be:
 Textbook and lectures: explain theory and tools for business policy;
 Case studies: force you to make sense of complex, multidimensional strategic
situations and apply theoretical frameworks to them;
 Group project: provide application of strategic thinking to a real company;
 Exams: evaluate your understanding of the complexities in the business policy; and
 Participation: gives you practice listening, raising questions, applying analytical
frameworks, explaining and supporting your position, and changing your position
when appropriate.
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COURSE REQUIREMENTS AND GRADING
Group Project:
Detailed guidelines are attached.
First project
10% paper, Due November 2
5% presentation – 15 minutes
Final project
20% paper, Internal Report due December 5, Final due December 12
15% presentation – 15 minutes; “Dry Run” on December 5, Final on
December 12
Grading of Group Project
Grade sheets will be provided for both projects before they are due.
In grading group projects, the instructors will assign a team grade. This
grade will be determined based on the instructors’ assessment of
performance. You will be asked to provide your own assessment of your
classmates’ presentations using the form found at the end of the syllabus.
Results from your assessment will be taken into consideration by the
instructors.
Additionally, you will be asked to evaluate each of your team member’s
contributions to the group project using the form at the end of the
syllabus. You will provide this grade as a %. For example, John Smith
provided 100% of his work product, attended 80% of the meetings, etc.
John Smith therefore earned 90% of the project grade. Instructors will
use the peer evaluations to adjust the team grade up or down for
individual group members.
Exams:
20 % Exam 1—Take home due November 7
20% Exam 2—In class on November 30
Participation:
10%.
Instructors will evaluate based on quality and quantity of participation.
Both quality and frequency of participation are considered, so it is essential that you come to
class prepared and contribute to the discussions. If you have improved the quality of the course
through your questions and comments, you will get a high grade. Your participation in case
discussions is very important. Prepare the cases carefully by reading them at least twice before
class and sketching out your thoughts to the case questions.
Effective written and oral communications are important in this course. Your ability to make
valid, effective, theoretically sound arguments and use evidence well will determine whether
you are considered a good analyst in the real world, so these criteria matter in this class. Style
also matters. If your grammar, spelling and organization are poor, you will not win respect in
the outside world. Be sure to finish your work early enough so that you have time to correct
errors.
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Project Specifications
Students will choose from any of the following companies and industries:
Day Class
Company
Averetek
BioSea
HyGen
21 Acres
Location
Bothell
Bellevue
Bothell
Woodinville
Industry
IT consulting
Cosmeceutical
Pharmaceutical
Agriculture/environmental
education
Evening Class
Company
Care Wave
City of Kirkland
Jellybones
Pure Water Systems
T-Mobile
Location
Bellevue
Kirkland
Bainbridge Island
Bellevue
Factoria
Industry
Medical—pain care
Retail/tourism
Educational toys
Water purification
Telecom
Meetings with the Company
The first step in the project is for the team leader to arrange an initial meeting with
representatives of the company. Several things should take place in this meeting:
 Get to know each other on a personal level—background, interests, skills, etc.
 Get to know the “key elements” of the company—web site, printed materials, office,
site, product, etc.
 Complete and sign a Consulting Agreement (template will be provided). The
Consulting Agreement outlines key deliverables, dates, and responsibilities. The
elements of the final project (below) are designed to be general enough to fit all of
the companies. Issues pertaining to specific companies (i.e. market entry,
distribution partnerships, product line expansion, etc.) will be addressed in the final
paper by focusing on strategic tactics related to that particular issue.
 Identify any additional pieces of information that the team needs from the company
before the next meeting.
 Schedule the next meeting (or two).
Beginning with this meeting, students should log project hours on a time log (template will be
provided).
Subsequent meetings should be scheduled based on the needs of the students and company.
Sometimes email or phone may be sufficient. Kristen will attend at least two student meetings
with each client.
Paper/Presentation 1: Industry and Segment Definition
The first paper and presentation require an application of the concepts presented in lectures
during the first weeks of class. The paper should be 8-10 pages, double-spaced, exclusive of
exhibits and references. The information required to write the paper will come from a
combination of research (journals, industry publications, etc.) and conversations with
representatives from the company.
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The presentation should be approximately 15 minutes. The audience for the presentation will
be the instructors and peers—representatives from the company will be invited to the final
presentations only.
Papers and presentations should include the following:
Industry overview
a. What have been the most important strategic changes/moves in the last year
or two in your industry? What caused these? How did industry structure
change as a result?
b. What are the key success factors for your industry? Explain why these are
the key factors.
c. Identify the major players in the industry.
2. Competitive Analysis
a. Focus on 2-3 of your company’s direct competitors and identify their
competitive advantages.
b. Identify some other particularly interesting (e.g., unusual strategy, etc.)
players.
c. For each of these: how big is the company? Is it diversified?
3. Strategic Overview of the Company
a. What major strategic issues/challenges is your company dealing with?
b. How do the changes you identified in your industry affect your company?
c. Which of the key success factors you identified as important in your industry
does your company have? Which does it need?
1.
Final project: Strategic Futures: Issues, Alternatives and Recommendations
The final paper and presentation reflect a combination of concepts from lecture, the first
paper/presentation, and additional research and analysis. The paper should include a revised
version of the initial 8-10 page paper plus additional 8-10 pages of new information, analysis
and recommendations.
The presentation should be approximately 15 minutes. The audience for the presentation will
be the instructors, peers, and representatives from the company. Some time will be provided
following the presentations for company representatives to ask questions.
Papers and presentations should include the following:
1. A cover page, table of contents, and executive summary
2. The concepts and information about the industry, competition, and company that
was covered in Paper 1
3. A SWOT analysis for the company
4. An overview of the company’s strategic issues and alternatives
a. These will be provided by the company and/or will emerge as part of your
research and analysis.
b. At least two alternative strategic actions should be presented for each issue
5. Your recommended strategic actions
a. Summarize the benefits and risks associated with your recommendation
b. Justify your recommendation with evidence from research or conversations
c. Assess the implications of the recommended actions on the functional areas
of the company
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d. Provide a timeline or GANTT chart
6. Conclusions
a. Summarize your analysis and recommendations
b. Reflect upon the extent to which your recommendations fit with the theories
presented in class
7. References
a. Document the sources of your information with appropriate in-text citations
and a reference list. References should be appropriate business journals,
databases, business media, political data, etc. and should be recent.
b. APA format required. It is online at the UWB Library web site; the direct
link is
http://www.uwb.edu/library/guides/BusWeb/BusWebCiteOnlineAPA.ht
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SCHEDULE OF ASSIGNMENTS AND READINGS
Dates
Topics, Assignments, Readings
September
TH, 28
Introduction: Form Groups, review syllabus
T, 3
October
Company Representatives will make presentations regarding their companies,
choose your company
1, HHI: Strategic Management and Strategic Competitiveness
In class exercise: Five Forces and the Passenger Airline Industry. PP 67-68.
TH, 5
2, HHI: The External Environment: Opportunities, Threats, Industry
Competition, and Competitor Analysis
Drivers of Industry Financial Structure
T, 10
Library resources and research strategies—Doreen Harwood
TH, 12
3, HHI: The Internal Organization Environment: Resources, Capabilities and
Core Competences
In class exercise: Organizational Resources. P. 98.
T, 17
4, HHI: Business Level Strategy
TH, 19
5, HHI: Competitive Rivalry and Competitive Dynamics
Samsung Electronics
T, 24
6, HHI: Corporate Level Strategy
TH,26
7, HHI: Acquisition and Restructuring Strategies
T, 31
Group Work
TH, 2
November
Paper 1 due, Presentation 1
T, 7
Exam 1 (take home) due
Feedback on papers and presentations
7
Date
Topics, Assignments, Readings
TH, 9
8, HHI: International Strategy
T,14
9, HHI: Cooperative Strategy
Rebuilding Partnerships: Re-inventing Oracle’s Go-to-Market Strategy
TH, 16
11, HHI: Organizational Structure and Controls
12, HHI: Strategic Leadership
T, 21
Group Work
TH, 23
No Class- HAPPY THANKSGIVING
T, 28
Review or catch up
TH, 30
Exam 2 (in class)
December
T, 5
Internal review of Final Report and “Dry Run” of Final Presentation
TH, 7
Group Work
T, 12
Final presentations and Papers due (company reps attend class)
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Case Questions
Drivers of Industry Financial Structure
This is an in-class exercise. All information is provided in class.
Samsung Electronics
1. What recommendation would you make to Chairman Lee regarding Samsung’s
response to the threat of large-scale Chinese entry?
2. What were the sources of Samsung’s cost advantage in DRAMs in 2003?
3. What were the sources of Samsung’s price premium in DRAMs in 2003?
4. What kind of advantage are the Chinese entrants seeking? How close are they to
achieving it?
5. How much of Samsung’s performance is based on its reputed low-cost advantage?
6. Can Samsung’s low-cost advantage withstand the Chinese threat on costs?
7. Does anyone think the numbers mask the fact that Samsung’s differentiation advantage
is more important or easier to sustain or both?
8. If Samsung pursues a low- cost, differentiated strategy, how does it achieve it?
9. How should Samsung respond to the Chinese threat?
Building Partnerships: Re-inventing Oracle’s Go-to-Market Strategy
1. Describe the evolution of Oracle’s partnerships with its partners, leading to Oracle
PartnerNetwork.
2. What is the rationale behind Oracle’s reinvigorated go-to-market partnership strategy?
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Statement on Class Participation
There is no ‘recipe’ for conducting or evaluating class participation, but we can identify some of
the characteristics of successful or unsuccessful performances in this category. What follows
are lists of attributes frequently demonstrated by a class member earning various participation
grades.
A: Instructor Observations about this Profile:
 Makes outstanding, original contributions to class discussion throughout the quarter
 Has completed all assigned reading/viewing/writing, and more, with insight and a
pronounced energy for seeing and articulating connections
 Actively encourages others to express their ideas
 Makes constructive comments on other people’s statements and presentations
From a peer’s perspective, this profile might describe class members who lead, mobilize,
challenge, stimulate, redirect, and help others.
B: Instructor Observations about this Profile:
 Makes important contributions to class discussion
 Has completed assigned reading/viewing/writing
 Provides correct explanations
 Allows other to express their ideas and makes constructive comments
From a peer’s perspective, this profile might describe class members who listen actively, build
on previous comments, and synthesize findings.
C: Instructor Observations about this Profile:
 Contributes sporadically or somewhat to class discussion
 Has completed the assigned reading/viewing/writing, or most of it
From a peer’s perspective, this profile might describe class members who contribute
consistently by adding ideas, asking clarifying questions and responding to other class
members.
D: Instructor Observations about this Profile:
 Rarely contributes, or rarely contributes helpfully, to class discussion
 Appears not to have competed assigned reading/viewing/writing consistently
 Doesn’t allow others to express their ideas
From a peer’s perspective, this profile might describe class members whose contributions are
limited. They may speak only in small-group work, falling silent in full-group discussions.
Their preparation level and/or engagement level constrain their participation, and may even
inhibit the process for others.
F: Instructor Observations about this Profile:
 Does not contribute to class discussion
From a peer’s perspective, this profile might describe class members who, in important ways,
refuse the invitation of shared inquiry a university affords.
Adapted from http://www-geology.ucdavis,edu/~GEL242Rubrics.html
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Peer Evaluations
Evaluator: ______________________
1. Member
Rationale
Percentage (of 100)
2. Member
Rationale
Percentage (of 100)
3. Member
Rationale
Percentage (of 100)
4. Member
Rationale
Percentage (of 100)
5. Member
Rationale
Percentage (of 100
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Presentation Evaluation Form: Strategy
Presenters:______________________________________________________________
_____________________________________________________________
Content:
 Helped audience understand company and industry
 Highlighted functional practices and processes
 Pointed to strengths in organization
 Pointed to potential areas of improvement
 Applied to course concepts and terminology
50
__________
Creativity and Level of Interest
10
______________
 Effectively used visual materials
 Used examples to illustrate concepts and observations
 Engaged audience interest
Organization
______________
 Ideas and concepts flowed logically
 Good transitions between speakers
 Good use of time
10
Presentation Effectiveness
______________
 Presentation objectives were clear
 Strong clear opening
 Team members conveyed professionalism
 Team members were introduced
 Speakers’ voices carried well
 Speakers’ pace was appropriate
 Presenters made persuasive arguments
 Key points were summarized at the end
 Audience could use information provided
30
Total Points
100
Points subtracted for exceeding time limit:
__________
(5 points per minute)
Comments:
12
___________