BUSINESS 218 — STRATEGIC MANAGEMENT Graduate Programs College of Engineering San Jose State University Dr. Alvin William Musgrave, Jr., Lecturer Office hours: by appointment Work phone: (408) 557-6820 Email: bill@ten-net.org Summer 2001 MBA/MSE HP Cohort 2 HP 1266 Kifer Rd Units: 3.0 COURSE DESCRIPTION – This is a capstone course designed to integrate the conceptual areas of management theory and practice around the study of case histories drawn from actual business experience. This is a challenging course that focuses on understanding why some firms succeed while others fail. Students use all the knowledge acquired from prior business courses, coupled with strategic management concepts and techniques, to chart the future direction of different organizations. The course requires that students make objective strategic decisions as appropriate to the organization’s situation and to justify them through oral and written presentations. COURSE OBJECTIVES – As a result of the student’s participation in this course, expectations are that they will achieve the following objectives: 1. Understand the concept and role of business strategy in organizations. 2. Develop an outlook of the generalist and how an integrative and strategic approach can be applied to solve business issues in the face of incomplete information. 3. Develop a philosophy of growth and how to apply an attitude of innovation, creativity, and entrepreneurial management, as opposed to status quo. 4. Learn important analytical and planning tools and develop an ability to diagnose the total business situation and to integrate various disciplines and concepts in forging a solution. 5. Relate strategic concepts being studied to current business events. 6. Experience the value of teams and hone one’s collaborative and team member skills. 7. Improve communication skills in presenting business analyses, both verbally and in writing. REQUIRED READING Textbook, Charles W.L. Hill and Gareth R. Jones, Strategic Management: An Integrated Approach, fifth edition, Houghton Mifflin Company, Boston, 2001 Business periodicals such as San Jose Mercury, Wall Street Journal, or Fortune. APPROACH - The course is presented primarily as a seminar, drawing heavily upon the active participation of students in the discussion of concepts, problems, and cases. The approach of the course to learning is based on the premise that we learn concepts and principles best by applying them in as close to real world circumstances as we can. To this end, the concepts, tools, questions, and cases in the textbook provide excellent coverage of strategic management in a real business world context. Emphasis is on conceptual thinking, in contrast to short-term practical problem solving in a specific situation. Assignments are regarded as opportunities for students to demonstrate their ability to think strategically and express findings in conceptual terms. Readings from the text, supplemented by lecture presentations, serve as conceptual anchors to which students can tie their strategic thinking about cases or items of current interest in the press. Students are urged to share their observations, comments or questions related to the course at the beginning or each class period and then participate in the discussion to topics raised. CASE ANALYSIS & PRESENTATION – Student teams will be given the opportunity to prepare case analyses, formally present their findings to the class, and then lead a class discussion of the case. Students are encouraged to obtain relevant information from sources other than the text and integrating this into their presentation. Students will be evaluated individually on their verbal presentations. At the time of the presentation, a written report (6 to 8 pages) reflecting the team’s analysis and findings is to be submitted. For the report, the same credit will be given to each member of the group, subject to modification according to the peer evaluation as described below. TERM PROJECT – The term project (referred to as the Strategic Management Project in the text; see end of Chapter 1) allows students to become involved in an in-depth research project of a company. At the beginning of the course, students will select a company that they will study together with their fellow team members. A company can be selected from one of the case studies in the text or another company. At the end each chapter, students are presented with a series of question that provide a way to perform the analysis of the chosen company. The answers by themselves do not make the project; rather they are considered the raw information which – with the thoughtful application of strategic concepts, definitions, and models – will provide a helpful framework for a strategic analysis and presentation of the project. Group member are free to divide up the work among themselves, each student taking responsibility for several chapters. At the end of the semester, the groups present their projects to the class for discussion. A 20-page write-up of the analysis also has to be prepared as an integrated internally consistent team effort. PEER EVALUATIONS – Everyone on the team will be given the same credit for the written case analysis and presentation of the group project, but a peer evaluation will be given on the last day of class to determine whether each member contributed fairly to the preparation and delivery of the presentation. EXAMINATIONS – There will be objective type tests at both mid-term and a comprehensive final exam at the end of the course. OPTIONAL WRITTEN REPORTS – Up to two optional written reports (2 to 3 pages) may be submitted to earn extra credit for boosting grades on class presentation scores and exams. Students may earn extra credit as follows: Responses to end-of-chapter “Small Group Exercise” questions, to be prepared as a group effort and submitted at or before the scheduled class discussion, or Analysis of current events according to end-of-chapter “Exploring the Web” or “Article File” questions, to be prepared as an individual student effort. 2 GRADING – Grades are based on mastery of course materials and concepts and an ability to communicate clearly and effectively. The final grade for the course is based on the following weightings: Classroom discussion and presentation of cases Written case study analysis (group grade) Term project (group grade) Mid-term examination Final comprehensive examination 20% 10% 30% 15% 25% SUGGESTIONS FOR CASE AND TERM PROJECT ANALYSES Use the guidelines on pages C2 –C14. Take every opportunity to relate your case analysis or term project to the concepts presented in the textbook. Present a well-written report, with table of contents, footnotes, and bibliography. For presentations, have every team member participate equally. If at all possible, do interviews to supplement your research. For the term project, use the questions at the end of each chapter as a road map to help you with determining where to focus your analysis. Make it a true team effort with each member doing their part and playing off each other’s strengths. Make it a fun learning experience. 3 Course Schedule Session 1 Date 6/28 Thur 2 7/5 Thur 3 7/12 Thur 4 7/19 Thur 5 7/21 Sat 6 7 7/26 Thur 8/2 Thur 8 8/4 Sat 9 8/9 Thur 8/16 Thur 10 Assignment Introduction to course – Course overview Analyzing and writing a case Team assignments Final selection of cases The Strategic Management Process Stakeholders & the Corporate Mission External Analysis Competitive Advantage: Resources, Capabilities, & Competencies Case discussion: Wizards of the Coast Building Competitive Advantage Through Functional Level Strategies Business Level Strategy Competitive Strategy and the Industry Environment Case analysis presentations (suggested cases): Amazon.com: Expanding Beyond Books Carnival Corporation, 1998 Airborne Express Microsoft’s Windows CE Outback Goes International Mid-term (bring SCANTRON NO 882-ES) Strategy in the Global Environment Corporate Strategy Corporate Development Designing Organizational Structure Designing Strategic Control Systems Matching Structure and Control to Strategy Implementing Strategic Change Review for final exam Team presentations of strategic management projects Chapter Case 1 2 3 4 3 5 6 7 10 17 20 12 26 8 9 10 11 12 13 14 Final exam (bring SCANTRON NO 882-ES) Note: Bolded assignments are formal group presentations with a written report due also. 4