ISOM 3100 Business Simulation and Strategic Decisions
Course Syllabus and Outline (Spring 2012)
Mon & Wed; 10:30 am -11:50 am
Prof. Ted Clark, Department of Information Systems, Business Statistics & Operations Management,
School of Business & Management, tclark@ust.hk, Mobile 9640-4400
1. Objective and Learning Methodology
This course combines a case study discussion approach to illustrate strategic management and
decision making in business with a hands-on business simulation exercise designed to challenge
teams via competitive decision making and management of tradeoffs in a competitive business
simulated industry environment. Students are expected to engage in case analysis and team projects
for analysis and discussion of business decisions, issues, and strategic management tradeoffs. The
objective is to develop a broad perspective in managerial decisions and an appreciation of economic
and social factors that drive modern global organizations. The course consists of a combination of
lectures, readings and case studies. Students are expected to apply concepts and techniques garnered
during the course in tackling case study preparation and discussion, team decision making and
analysis, and in completing the final examination. Participation in case discussions is a vital element
of the course, and will be an important component of the overall performance in the course.
2. Capstone Business Simulation
The Capstone Business Simulation, used by more than 100 business schools world-wide including
Wharton and Harvard and used as part of the HKUST-Kellogg EMBA program, will be integrated
into the course lectures and discussions and will give students the opportunity to work as teams in
making important tradeoffs and decisions regarding marketing, operations, product decision, human
resources, logistics, and finance issues in a simulated business environment. The relative
performance of each team on multiple criteria for the eight rounds (simulated years of market
operations) will represent 30% of the overall grade for the course.
3. Grading
The course grade consists of 4 components. The weight of each is shown below.
Individual Participation
20% (Attendance, class participation, and rehearsal scores)
Mid-Term Examination
20% (open book, open notes, individual work)
Group Business Simulation 30% (based on overall scores on simulation and assignments)
Final Examination
30% (open book, open notes, individual work)
4. Class Schedule and Pre-Class Assignments
Date
Feb. 1
Feb. 6
Feb. 8
Feb. 13
Feb. 15
Feb. 20
Feb. 22
Feb. 27
Apr. 16
Apr. 18
Apr. 23
Apr. 25
Apr. 30
Lecture Topics
 Course Introduction, Requirements & Policies
 Introduction to CapStone Business Simulation
 Foundation of Strategy: “The Art of War”
 Modern Business Strategy Core Concepts
 Discussion of Skil Corp HBS case
 Recap of lessons learned from Skil Corp case
 Discussion of Simulation Rehearsal Results
 Creating & Sustaining Competitive Advantage
 Practice Round Issues & Tradeoffs
 Discussion of Simulation Practice #2 results
 Using Simulations in Business
 Discussion of Simulation Practice #3 results
 Competitive Positioning Strategy
 Discussion of Simulation Practice #4 results
 Introduction to Procter & Gamble Case
 Discussion of Simulation Practice #5 results
 Discussion of Strategy in Procter & Gamble
 Discussion of Competition Round #1 results
 Revising Business Strategies: Learn and Adapt
 The Red Queen Principle: Continuous Change
 Discussion of Competition Round #2 results
 Discussion of Capital One’s Strategy
 Mid-Term Exam (open book, open notes)
 No Class
 No Class: Ching Ming Festival
 No Class: Easter Monday
 Discussion of Competition Round #3 results
 Information Based Strategy Discussion
 Discussion of Delaware Valley Case Study
 Discussion of Competition Round #4 results
 Discussion of China’s Golden Projects
 Discussion of Competition Round #5 results
 Discussion of Competition Round #6 results
May. 2
May. 7
May. 9
TBA
 Discussion of Competition Round #7 results
 Discussion of Competition Round #8 results
 Corporate Strategy vs. Personal Strategy
Final Exam: Open Book, Open Notes
Feb. 29
Mar. 5
Mar. 7
Mar. 12
Mar. 14
Mar. 19
Mar. 21
Mar. 26
Mar. 28
Apr. 2
Apr. 4
Apr. 9
Apr. 11
Pre-Assigned Readings (BEFORE class)
 No readings assigned before the first class.
 Read Capstone Simulation Materials
 Start Capstone Simulation Rehearsal Online
 Competitive Strategy: The Core Concepts
 HBS Case: Skil Corp
 Complete Simulation Rehearsal (GRADED)
 Team Selection Completed and Submitted
 Complete Practice Rounds #1 with Team
 Simulation Practice Round #2 Submitted
 Assignment #1: Expected Team Strategy
 Simulation Practice Round #3 Submitted
 Review / Revise Team Strategy
 Simulation Practice Round #4 Submitted
 HBS Case: Procter & Gamble
 Simulation Practice Round #5 Submitted
 HBS Case: Procter & Gamble
 Competitive Simulation Round #1 Done
 Analyze Team Simulation Strategic Position
 Review / Revise Team Strategy
 Competitive Simulation Round #2 Done
 Wharton Case: Capital One
 Mid-Term Exam (open book, open notes)
 Review Notes or Readings
 Have Fun over the Holiday!
 Have Fun over the Holiday!
 Competitive Simulation Round #3 Done
 Assignment #2: Revised Team Strategy
 Wharton Case: Delaware Valley Financial
 Competitive Simulation Round #4 Done
 HBS Case: China’s Golden Projects
 Competitive Simulation Round #5 Done
 Competitive Simulation Round #6 Done
 Assignment #3: End Game Strategy
 Competitive Simulation Round #7 Done
 Competitive Simulation Round #8 Done
 Optional Reading: Not Covered on Exam