2002 Part-Time MBA Programme
CORE THEME
Managing in the Competitive
Environment
Course Outline
2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
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TEACHING STAFF:
Peter Allen
Extension: 2253
E-mail: p.j.allen@durham.ac.uk
Brian McGarrie
Extension: 1420
E-mail: brian.mcgarrie@durham.ac.uk
Mike Nicholson
Extension: 3392
E-mail: mike.nicholson@durham.ac.uk
COURSE AIMS
This theme explores the environmental pressures at work on organisations, how they can
respond to these influences, and the management issues involved in aligning with these
forces.
Specially, the theme takes an integrated perspective of the operating environment of the
organisation. Firstly, it explores the processes of developing strategy and making strategic
choices in order to develop a critical appreciation of the organisation and the environment.
Secondly, it considers how a market orientation that focuses on customers and stakeholders
and a detailed understanding of the structure of markets acts as means to unify strategic
decisions and operational actions by appropriate conceptualisation, design, pricing, promotion
and delivery of products or services. Thirdly, the theme examines how managers deliver these
plans by effective operational management in terms of the design, planning, control,
forecasting and management of resources.
A particular feature is the way in which the theme not only conceptualises the strategic
pressures faced by organisations, but also identifies the main issues that need to be addressed
by individual managers.
LEARNING OBJECTIVES OF THE COURSE
 To develop an integrated appreciation of the key business areas that need to be managed
in a competitive operating environment; emphasis on process and integration rather than
functional ‘silos’
 To appreciate the dynamic pressures of the environment, both internally with the
organisation and externally
 To develop a critical understanding of the existing theoretical knowledge base on key
areas (Strategy & Decision-making, Operations & Marketing)
2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
SKILLS
By the end of this course participants should have developed skills in:
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analysing the dynamic pressures of the business environment;
applying theory to practice;
analysing the need for integration in modern business environs.
DELIVERY OF THE COURSE
The course will be taught by a combination of case study-based lectures, small group and
individual case study analysis, and guided reading will underpin the knowledge
requirements of the course.
TIMETABLE
The duration of the course is 48 hours.
SUMMATIVE ASSESSMENT
Assessment will take the form of a 2,500 word assignment, together with an examination at
the end of the course. Each will count for 50% of the total mark. At the end of the term
there will be a 3 hour examination based on a seen case study.
Assignment
To be submitted by:
12 noon on Saturday 16th March 2002
Please hand in to the Postgraduate Office and obtain a receipt.
Length:
No more than 2,500 words, excluding appendices.
Details:
Case study and briefing document introduced in session 16.
Notes:
*
Please type the assignment, giving the number of words at the end. Type on one side
of the page only using double-spacing and fasten assignment by stapling at top lefthand corner.
*
Any literature referred to in the text should be included in a list of References at the
end. Please refer to the MBA handbook for details of recommended referencing
system.
*
Always keep a copy of all your assignments as the originals will not be returned.
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2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
Examination
The examination will be of three hours duration and will take place on Friday 10th May
2002, 2.00pm – 5.00pm.
READING
Below is a list of some key texts that you may find helpful. Specific reading for each week is
detailed further in the course reader to be issued at the start of the course. All the main texts
are in the library and, in addition, there are copies of some articles in the library reprints file.
CORE TEXT/S
Johnson, G. and Scholes, K., (2002), Exploring Corporate Strategy, 6th edition, London:
Financial Times Prentice Hall
Slack, N., et all (2000), Operations Management, 3rd edition, London: Pitman Publishing
FURTHER USEFUL SOURCES
A Course Reader containing a number of relevant articles and extracts will be provided at
the start of the course. Most of the relevant case studies for classroom sessions will also be
provided in the reader.
SYLLABUS
a ) Introduction
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Inter-disciplinary case study analysis (strategy, operations, marketing)
b) Strategy
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Nature of strategy: definitions; deliberate – emergent debate
Sustainable Competitive Advantage - strategic capabilities; environmental analysis,
resource and capabilities analysis, positioning and resource-based approaches
Strategy process: schools and models, stakeholder analysis, cultural analysis, mission and
objectives
Corporate strategy: directions, acquisitions and alliances, synergy and management styles,
parenting
c) Marketing

Achieving marketing orientation
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2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
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The customer imperative; the marketing philosophy, sources of value, markets and the
environment, buyer behaviour
Defining strategic pathways; segmentation, targeting and positioning
Issues to manage – market research, product policy, pricing strategies, distribution,
marketing communications
d) Operations
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Operations objectives and Strategy
Product/service design, network design, job design, role of technology
Planning and Control; capacity, inventory, Just-In-Time, quality, projects
Improvement philosophies
e) Summary

Inter-disciplinary case - preparation for assessment
READING FOR SPECIFIC TOPICS
SESSIONS
Session 1 – Introduction
Further Reading
Lecture Note
G Johnson & K Scholes
An introduction to managing in the competitive environment
Exploring Corporate Strategy, Ch 1
Case Study
Video Case Study: Churchill Tableware
Session 2 – The Political and Cultural Contexts of Strategy
Reading
Lecture Note
G Johnson & K Scholes
The political and cultural contexts of strategy
Exploring Corporate Strategy, Chs 2 & 5
Case Study
Does Marks & Spencer have a future? [see Course Reader]
Use the following questions to help prepare your case study analysis:
1. Identify the cultural web in Marks & Spencer in 1998?
2. What went wrong in Marks & Spencer and does it have a future?
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2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
Session 3 – Strategy Process and the External Environment
Reading
Lecture Note
G Johnson & K Scholes
Strategy Process and the External Environment
Exploring Corporate Strategy, Ch 3
Case Study
The European Brewing Industry (Johnson & Scholes pp 138-143)
Use the following questions to help prepare your case study analysis:
1. Assess the principal trends and pressures within the European brewing industry.
2. What are the main factors influencing the nature of competition within the European
brewing industry? Are the factors the same across all countries?
3. How have the different brewing companies chosen to compete within the industry?
Session 4 – Understanding Strategic Capabilities
Reading
Lecture Note
G Johnson & K Scholes
Understanding strategic capabilities
Exploring Corporate Strategy, Ch 4
Case Study
Brasseries Kronenbourg
Use the following questions to help prepare your case study analysis:
1. Outline the main resources and competences of Brasseries Kronenbourg, identifying the
ways in which they contribute to its strategy.
2. Identify the sources of competitive advantage that Brasseries Kronenbourg seeks to
exploit.
Session 5 – Creating and Sustaining Competitive Advantage
Reading
Lecture Note
G Johnson & K Scholes
Further Reading
M E Porter
G Stalk, P Evans &
L Shulman
Creating and sustaining competitive advantage
Exploring Corporate Strategy, Ch 7
“Competitive strategy”, in R De Wit & R Meyer (1998),
Strategy: Process, Content, Context, International Thompson
Business Press (DeWM) pp 344-358
“Competing on capabilities”, Harvard Business Review (HBR),
March-April 1992
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2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
R M Grant
M E Porter
“The resource-based theory of competitive advantage:
implications for strategy formulation”, California Management
Review (CMR), 33 (4) pp 97-115
“What is strategy?”, HBR, November-December 1996
Case Study
Brewery Group Denmark (Johnson & Scholes pp 910-924)
Use the following questions to help prepare your case study analysis:
1. How has the Brewery Group Denmark chosen to position itself against its competitors?
2. In the light of your analysis of the trends and competitive pressures within the brewing
industry, assess the future sustainability of the Brewery Group Denmark’s strategy?
Session 6 – Corporate Strategy: Methods and Directions
Reading
Lecture Note – Corporate Strategy: directions and methods
G Johnson & K Scholes
Exploring Corporate Strategy, Ch 8
Further Reading
M Sirower
G Hamel, Y Doz &
C K Prahalad
S Preece
“The Synergy Trap”, in DeWM pp 449-468
“Collaborate with your competitors – and win”, HBR,
January/February 1989
“Incorporating international strategic alliances into overall firm
strategy”, in DeWM pp 543-552
Case Study
Nokia: the consumer electronics business
Use the following questions to help prepare your case study analysis:
1. Outline and assess the development of Nokia’s strategy for the consumer electronics
business from the mid-1970s to 1992.
2. Analyse the problems faced by Nokia within the consumer electronics business during the
late 1980s and early 1990s. To what extent were the difficulties a reflection of problems
typically encountered by companies who attempt to grow through acquisitions?
3. Outline and explain the restructuring of the Nokia Group from 1992 to 1996. In
particular, assess the reasons behind Nokia’s withdrawal from the consumer electronics
business.
Session 7 – Corporate Strategy: Understanding and Managing Synergy
Reading
Lecture Note
Corporate strategy: understanding and managing strategy
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2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
G Johnson & K Scholes
Further Reading
M E Porter
C K Prahalad & G Hamel
M Goold & A Campbell
A Campbell & M Goold
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Exploring Corporate Strategy, Ch 6
“From competitive advantage to corporate strategy”,
HBR, May/June 1987
“The core competence of the corporation”, HBR,
May/June 1990
“Adding value from corporate headquarters”,
in DeWM pp 484-500
“Corporate-level strategy” in V Ambrosini et al. (1998),
Exploring techniques of analysis and evaluation in strategic
management, Prentice Hall Europe
Case Study
Burmah Castrol Chemicals Group
Use the following questions to help prepare your case study analysis:
1. What are the key resources and competences of the Burmah Castrol Chemicals Group.
2. Outline and assess the alternative roles that the Group centre could play in enhancing the
strategies of the business units. What would be the implications for the strategies to be
followed in the future?
3. What would be your recommendations to Mike Dearden following the executive debate?
Session 8 – Marketing in Context
Reading
Lafferty, B. A. & Hult, G.T.M. (2001), ‘A synthesis of contemporary market orientation
perspectives’. European Journal of Marketing, 35(1/2), pp92-109.
Aijo, T. S. (1996), ‘The theoretical and philosophical underpinnings of relationship
marketing: Environmental factors behind the changing marketing paradigm’. European
Journal of Marketing, 30(2), pp8-18.
Case Study
Corus – “Developing a strong customer focus”
Session 9 – Marketing & Customers
Reading
Dibb et al. Ch. 4-7
Further Reading
Morgan, J. J., Stoltman, F. W. & Anglin, L. K. (1999), ‘An investigation of retail shopping
situations’. International Journal of Retail & Distribution Management, 27(4), pp145-153.
Wilson, E. J. (1996), ‘Theory transitions in organizational buying behavior research’.
2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
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Journal of Business & Industrial Marketing, 11(6), pp7-19.
Beane, T. P. & Ennis, D. M. (1987), ‘Market segmentation: a review’. European Journal of
Marketing, 21(5), pp20-42.
Case Study
Independent Insurance – “Targeting sponsorship within a specialist niche market”
Use the questions provided in the case study as a guide to your analysis.
Session 10 – Marketing Decisions
Reading
Dibb et al. Ch. 8-11
Further Reading
Coomasaru, C., Day, J. & Lee, S. (1996), ‘Developing a marketing plan for Lemonhead’.
Management Decision, 34(8), pp17-24.
Vignali, C. (2001), ‘McDonald’s: “think global, act local”.’ British Food Journal, 103(2),
pp97-111.
Case Studies
British Sky Broadcasting – “Building a brand leader”
Heinz – “Re-launching Heinz Salad Cream”
Use the questions provided in the case studies as a guide to your analysis.
Session 11 – Marketing in Action
Reading
Dibb et al. Ch. 21-24
Further Reading
Driver, J. C. (2001), ‘Airline marketing in regulatory context’. Marketing Intelligence &
Planning, 19(2), pp125-135.
Hoffman, D.L. & Novak, T. P. (1997), ‘A New Marketing Paradigm for Electronic
Commerce’. The Information Society, 17.
http://www2000.ogsm.vanderbilt.edu/papers/pdf/information.society.oct.17.1996.pdf
Case Study
Freeserve – “Objectives and dynamics in a rapidly expanding market”
Use the questions provided in the case study as a guide to your analysis.
2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
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Session 12 – Introduction to Operations Management and Strategy
Reading
Slack et al Ch 1-3.
Further Reading
Johnston, R. (1999) ‘Service operations management: return to roots’, International Journal
of Operations and Production Management, vol.19, no.2, 104-124.
Gagnon, S. (1999) ‘Resource-based competition and the new operations strategy’,
International Journal of Operations and Production Management, vol. 19, no.2, 125-138.
Case Study
McDonald’s Corporation
Use the following questions to help prepare your case study analysis:
1. How do McDonald’s compete operationally?
2. McDonald’s competitive advantage – Operations or Marketing?
Session 13 – Product/Service Design and Network Design
Reading
Slack et al Ch 4-6.
Further Reading
Gustafsson A., Ekdahl F. and Edvardsson B. (1999) ‘Customer focused service development
in practice: A case study at Scandinavian Airlines System (SAS)’, International Journal of
Service Industry Management, vol.10, no.4, 344-358
Muffatto M. (1999) ‘Platform strategies in international new product development’,
International Journal of Operations and Production Management, vol.19, no. 5/6, 449-459.
Case Study
The Boeing Commercial Airplane Group: Design Process Evolution
Use the following question to help prepare your case study analysis:
1. How could Boeing improve their design process?
Session 14 – Planning and Control
Reading
Slack et al Ch10, 12, 13, 15
2002 PT MBA Programme
Managing in the Competitive Environment Course Outline
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Further Reading
Magretta J. (1998) ‘The Power of Virtual Integration: an Interview with Dell Computer’s
Michael Dell’, Harvard Business Review, March-April, 73-84.
Gelinas R. (1999) ‘The Just-In-Time implementation project’ International Journal of
Project Management, vol.17, no. 3, 171-179.
Case Study
Gateway: Moving Beyond the Box
Use the following question to help prepare your case study analysis:
1. Contrast and compare Gateway with Dell from a Supply Chain Management perspective
Session 15 – Operations Improvement
Reading
Slack et al Ch 18, 20
Further Reading
Wright G. (1998) ‘Perspectives on Performance Measurement Conflicts in Service
Businesses’, Journal of General Management, vol.23, no.4, 35-50.
Keating, E., Oliva R., Repenning N., Rockart S. and Sterman J. (1999) ‘Overcoming the
Improvement Paradox’, European Management Journal, vol.17., no.2, 120-134.
Case Study
Webvan: Groceries on the Internet
Use the following question to help prepare your case study analysis:
1. Webvan went into liquidation earlier this year – from an Operation viewpoint, how could
this have been avoided?
Session 16 – Integrative Session
Case Study
Low-Cost is Flying High
Use the following questions to help prepare your case study analysis:
1. Identify and assess the strategic capabilities of EasyJet, focusing particularly upon the
marketing and operations activities of the organisation.
2. Has EasyJet defined a strategy likely to deliver sustainable competitive advantage into the
future?