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MGMT7102 CORPORATE STRATEGY
This course explores the idea of competitive advantage and its relationship to the strategies of corporations, their resources and capabilities and the
competitive environments in which they operate.
Mode of delivery: On Campus.
Prerequisites: This course is normally only available to students enrolled in the Graduate Certificate in Management, Master of Management, Master
of Public Policy or Master of Business Administration degree programs.
Incompatible courses: MGMT7022 Strategic Management.
Course Authority: Ed Russell, Senior Lecturer and Deputy Director, Research School of Management.
Consultation: During class, or by appointment made by email.
Email: edward.russell@anu.edu.au
Dates: Autumn Session, 2013: 22, 23, 24, 29, 30, 31 May. (9.30am to 5.30pm each day)
Course URL: http://wattle.anu.edu.au
Research School of Management
This course is offered by the Research School of Management. The School Office is located in Room 1088 of the LF Crisp Building 026. Office Hours
are 9.00am to 5.00pm, Monday to Friday.
Telephone: +61 2 6125 9839
Email: enquiries.rsm@anu.edu.au
Committee of Examiners: The Committee of Examiners for this course is chaired by Professor Pamela Morrison, and the members are Professor
David McKendrick, Ed Russell and Dr Ananda Jayawardana. The main role of the Committee is to oversee the grading and moderation process.
Course overview
Learning outcomes
Upon successful completion of the requirements for this course, students will be able to:
1. analyse an organisation's internal and external strategically relevant environments by applying appropriate theories, models, and/or frameworks,
including to scenarios deriving from students' personal work experience;
2. formulate appropriate strategies to gain a competitive advantage at both business unit and corporate levels;
3. evaluate alternative strategy options; and
4. communicate strategies or strategic alternatives both in writing and verbally to facilitate organisational decision-making and problem-solving.
Assessment summary
Assessment task Value
Due Date
Linked Learning Outcomes
Group Tasks
20% (4 x 5%) 22, 23, 29, 30 May 1, 2, 3, 4
Exam
50%
31 May
1, 3
Individual Report
30%
21 June
1, 2, 3, 4
Research-led teaching
This course is based on models and frameworks based on empirical research in strategic management, most of which has been conducted or
consolidated since the 1970s. The major journal in the discipline is the Strategic Management Journal. The Individual Report requires students to
undertake industry research guided by these models and frameworks.
Feedback
Staff feedback
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This is a discussion-led course and students will receive feedback as part of the classroom dialogue. In addition, feedback will be provided on
assessment as follows.
1. General feedback on the group tasks will be provided in class.
2. Feedback on the final exam, which will comprise short answer and multiple choice questions, will be provided in tabular and graphical formats.
3. Written feedback will be provided on complete drafts of the Individual Report, subject to those drafts being submitted by the two feedback
deadlines. This feedback will be concise and will cover two or three major opportunities for improvement.
4. Oral feedback on the final version of the Individual Report will be available by appointment.
Student feedback
ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. One of the key formal ways students
have to provide feedback is through Student Experience of Learning Support (SELS) surveys. The feedback given in these surveys is anonymous and
provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for
improvement.
For more information on student surveys at ANU and reports on the feedback provided on ANU courses, go to
http://unistats.anu.edu.au/surveys/selt/students/
and
http://unistats.anu.edu.au/surveys/selt/results/learning/
Informal written feedback will be sought at the end of the first block of teaching, and the lecturer will report on this in the second block.
Policies
ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic
standards, and implement them. You can find the University’s education policies and an explanatory glossary at:
http://policies.anu.edu.au/
Students are expected to have read the Code of Practice for Student Academic Integrity:
https://policies.anu.edu.au/ppl/document/ANUP_000392
before the commencement of their course.
Other key policies include:
Academic Progress
Assessment of Student Learning
Assessment Review and Appeals
Course Assessment: Consultation and Finalisation
Student Feedback on Teaching and Learning
College of Business and Economics examinations and assessments information
CBE maintains a page of information and links with which all students should be familiar:
http://tinyurl.com/cbeexams
Required Resources
Textbook
The textbook is Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael Porter. If you require a hard copy, the Coop
Bookshop on campus should be able to supply one. The "stock on hand" tab on this web page:
http://tinyurl.com/d89snas
will show if copies are available at the ANU campus store.
The textbook is also available e-book formats, for example a Kindle edition is available here:
http://tinyurl.com/cb5yl7m
To get the flavour of Porter's approach to strategy you can read this chapter from his second book, Competitive Advantage:
http://metarankings.com/cs/porter-ca.pdf
Reading the textbook
The two introductions usefully help to put the book in some historical context, albeit from a rather Porter-centric view.
Chapters 1 and 2 are central, so they'll be covered in depth. Please read them very carefully.
Chapters 3 and 4 will be touched on in class but not in depth. They may be useful for the individual report, depending on topic.
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Chapters 5 and 6 are important, and build on chapter 1.
Chapter 7 covers the idea of dimensions of strategy and strategic groups. It will be covered in class.
Chapters 8 onwards will be covered in a fairly compressed way as they're not the main focus of the course. Of these, the most emphasis will be on
chapter 14.
So, to get started, read the introductions and chapters 1 and 2 closely. Initially skim through chapters 3 and 4, read chapters 5 and 6 closely and pay
reasonable attention to chapter 7. Skim through the rest of the book, slowing down a bit for chapter 14.
Academic journal and other articles
These will be available electronically, and details will be provided on the Wattle site for the course. Regrettably, copyright restrictions mean that, in many
cases, students will have to locate articles on journal publishers' web sites. The following are some of the more important journals in the discipline.
Academy of Managment Journal
http://library.anu.edu.au/record=b2391384
Academy of Management Review
http://library.anu.edu.au/record=b2391386
Bell Journal of Economics
http://library.anu.edu.au/record=b2395354
Journal of Management
http://library.anu.edu.au/record=b2411746
Management Science
http://library.anu.edu.au/record=b2414679
Organization Science
http://library.anu.edu.au/record=b2418905
Strategic Management Journal
http://library.anu.edu.au/record=b2426359
Journals with a practitioner orientation include:
California Management Review
http://library.anu.edu.au/record=b2396693
Harvard Business Review
http://library.anu.edu.au/record=b1300697
MIT Sloan Management Review
http://library.anu.edu.au/record=b2416030
Case studies
Students will be required to read and prepare ten case studies. A set will be available in closed reserve in the Chifley library, and electronic copies will
be available for purchase online from the publishers. The case pack contains:
Wal-Mart Stores, Inc. (Harvard Business School)
Half a Century of Supply Chain Management at Wal-Mart (Ivey Business School)
Judo in Action (Harvard Business School)
Edward Jones (Harvard Business School)
Crown Cork & Seal in 1989 (Harvard Business School)
Cola Wars Continue: Coke and Pepsi in 2010 (Harvard Business School)
Philips versus Matsushita: The Competitive Battle Continues (Harvard Business School)
Swatch and the Global Watch Industry (Ivey Business School)
McKinsey & Co.: Managing Knowledge and Learning (Harvard Business School)
Procter & Gamble Europe: Vizir Launch (Harvard Business School)
The electronic case pack is available from Harvard Business School Publishing:
https://cb.hbsp.harvard.edu/cbmp/access/19467729
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The cost is $39.50 (US dollars).
Course Schedule
All sessions are at the Sparke Helmore Lecture Theatre No. 2 at the Law School except the Group Work Sessions at the end of the day which are held
in the CBE Building 26c breakout rooms. These are to be found on the mezzanine level above the ground floor lecture theatres. It’s a 10 minute walk
from Sparke Helmore to the CBE rooms, so plenty of time to pick up your afternoon coffee en route. Here’s a map:
http://goo.gl/maps/458Ci
Note that depending on the zoom level, the CBE Building may not appear on the Google maps image (you might just see the car park that was there
before it was built).
The seminars for this course will be recorded.
Day 1 Wednesday 22 May
9.30am
Seminar
11.30am
Case Discussion: Judo in Action
2.00pm
Seminar
4.00pm
Group Work: Half a Century of Supply Chain Management at Wal-Mart
Day 2 Thursday 23 May
9.30am
Seminar
11.30am
Case Discussion: Crown Cork and Seal in 1989
2.00pm
Seminar
4.00pm
Group Work: Edward Jones
Day 3 Friday 24 May
9.30am
Seminar
11.30am
Case Discussion: Wal-Mart Stores Inc.
2.00pm
Seminar
4.00pm
Case Discussion: Cola Wars Continue: Coke and Pepsi
Day 4 Wednesday 29 May
9.30am
Seminar
11.30am
Case Discussion: Swatch and the Global Watch Industry
2.00pm
Seminar
4.00pm
Group Work: Philips versus Matsushita
Day 5 Thursday 30 May
9.30am
Seminar
11.30am
Case Discussion: McKinsey and Co.: Managing Knowledge and Learning
2.00pm
Seminar
4.00pm
Group Work: Procter and Gamble Europe: Vizir Launch
Day 6 Friday 31 May
9.30am
Seminar
11.30am
Review Lecture
2.00pm
Exam 2.00pm to 5.00pm
Case Study Preparation
Case discussions are the most important learning activity in this course. There will be 6 plenary case discussions and 4 assessable group tasks based
on cases. The exam may contain questions which require reasonable familiarity with the cases, that is, the kind of familiarity that would come from
having studied them and participated in the discussions.
The cases in the course will also provide a common pool of examples for use in the seminars.
Case teaching has a venerable history in management education, going back to the Harvard Business School in the 1920s, although the Harvard Law
School pioneered the method from about 1870. You can read a bit of the history here, if you're interested:
http://harvardmagazine.com/2003/09/making-the-case-html
The great inspiration for the current generation of case teachers is the late C. Roland Christensen. A short bio here:
http://www.hbs.edu/teaching/about-the-center/c-roland-christensen.html
Sources of Advice on Case Preparation
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There's lots of material on the internet about preparing for case discussions in an educational context, and they've now become a very important testing
tool for recruitment by consulting firms and the like. Here are some examples of case preparation guidelines.
Harvard Business School:
http://tinyurl.com/cukpyrc
Cornell University:
http://home.ubalt.edu/ntsbpitt/framework.pdf
Georgetown University:
http://cet.usc.edu/resources/teaching_learning/docs/abcs.pdf
University of Idaho:
http://www.uiweb.uidaho.edu/ag/agecon/391/casestudmeth.html
A couple of textbook publishers, Cengage and McGraw Hill/Thompson:
http://tinyurl.com/c3qtwvq
http://www.mhhe.com/business/management/thompson/11e/case/prepare1.htm
You'll need to develop a method of preparation that best suits your learning style, but it's a good idea to read each case at least twice. My personal
approach involves three readings.
1. About a week before, I'll read the case like I was reading a magazine article, just to pick out the main features and, in particular, see if I can identify
an "elephant in the room".
2. A few days before the discussion, I'll study the case carefully, taking notes, seeing if there's anything useful in the tables and charts (usually called
"exhibits" in case studies). This preparation usually takes an hour or two.
3. The night before, or on the day of the case study, I'll review my notes and quickly read the case again.
There's a very important rule about case preparation and discussions. Don't research the company or industry: the discussion in class should
be based on the information in the case study document itself. Google is not your friend when it comes to case discussions. What
happened outside the case study, and particularly what happened afterwards, are not legitimate material for the case discussion itself.
Apart from that, we expect case discussions to be courteous but hopefully lively. The perfect case discussion is one where the lecturer is basically a
silent facilitator. This will only happen if the class is well-prepared and fully engaged.
Some Preparation Questions for the Case Discussions
Here are examples of the kind of questions that might be asked in class about the case studies set for discussion. Please don't narrowly confine your
case preparation to answering these questions: we want a class discussion, not just a Q and A.
Judo in Action
1.
2.
3.
4.
5.
For each of the four case studies, does the protagonist have a competitive advantage when it enters the industry?
Would they have a competitive advantage if the incumbents imitated their products at the beginning?
In the Softsoap and Red Bull cases, what kept the incumbents from fighting back aggressively, at least initially?
In the case of the UK petrol price war, how do you think the supermarkets expected the major gaoline retailers to react to their entry?
In the Freeserve v. AOL case, which consumers do you think were most readily switching to Freeserve. How could AOL have retained these
customers?
Crown Cork and Seal
1. What are the key strategic issues that Avery needs to consider?
2. How would define the industry in which Crown Cork and Seal competes?
3. Over time, how attractive has this industry been?
Case Discussion: Wal-Mart Stores Inc.
1. What are the sources of Wal-Mart's competitive advantage?
2. What do the numbers in the case study tell us about Wal-Mart's competitive advantage?
3. How sustainable is Wal-Mart's competitive advantage? How and why?
Cola Wars Continue: Coke and Pepsi
1.
2.
3.
4.
Why, historically, has the soft drink industry been so profitable?
Compare the economics of the concentrate business to that of the bottling business. Why is the profitability so different?
How has the competition between Coke and Pepsi affected the industry's profits?
How can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of the non-CSDs?
Assessment Details
Group Tasks: 20% in total
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There will be 4 group work sessions, each worth 5%. These will be on:
22, 23, 29, 30 May
The deliverable for each will be a page or two in response to a prescribed task. The group tasks will include work on a case study.
The groups will be assigned and will be different for each of the 4 sessions. You should submit an application for Special Consideration if you miss a
Group Task session.
Individual Report 30%
Word limit: 3000 to 4,500 words. There is no particular advantage in a longer report, but flexibility is provided to take account of variations in writing
styles and topics.
The Individual Report is optional. If you don't submit it, your marks for the course will be the sum of your marks for the exam and the group tasks.
The marking scheme for the Individual Report will be weighted towards rewarding higher level achievement. For example, a report of mid-Credit level
might receive only 10 of the 30 marks, whereas a mid-Distinction could receive 20 and a report in the High Distinction range of performance might get
very close to the full 30 marks. This is in contrast to the exam, which is weighted in favour of Pass and Credit level performance.
The Individual Report will be checked for academic integrity. It is to be individual, not collaborative work, not previously submitted for assessment in
another course, and is to be properly referenced in accordance with the ANU policies on Academic Integrity.
The Individual Report is due by midday on Friday, 21st June, 2013. It is to be submitted electronically on Wattle. It must be submitted in an electronic
format that permits highlighting and copying text. As part of the examination process for the Individual Report the examiner may require you to attend a
meeting to discuss the Report (or engage in a telephone discussion).
Referencing
The Individual Report must be referenced in compliance with the ANU Code of Practice for Student Academic Integrity:
https://policies.anu.edu.au/ppl/document/ANUP_000392
If you are already genuinely experienced and adept with a referencing style, by all means use it. If not, use the referencing style of the Strategic
Management Journal (SMJ). Details are under the heading "Reference and citation style" here:
http://tinyurl.com/cpbbtat
Have a look at an actual SMJ article to see how it all works, especially the in-text citations.
Typographic style, font size, line spacing is all left to your discretion. The Reports will be marked on-screen so bear that in mind.
Topics
The default topic for the Individual Report is set out in the next section. Students may also nominate topics any time up to and including the 31st of May.
The rules are that:
1. the course authority must approve each topic in writing; and,
2. all approved topics will be published on the course web site and may be adopted by other students.
Past experience has shown that most topics involve an industry analysis. This would include analysis of the resources and capabilities required for
success in an industry using one or some combination of the generic strategies.
The Default Topic
Consider the business of equipment for making coffee in the home. These images give an idea of the range of such equipment:
http://tinyurl.com/bncdrlk
There's obviously a lot of differentiation going on, but the industry may also be highly segmented, and the basis for competition may be quite different in
different segments.
Analyse the industry using relevant ideas from the course, looking at how corporations have responded to the challenges of creating and capturing value
and developing sustainable competitive advantage. What strategies have been used, and what resources and capabilities are involved?
Don't overlook the role of complementary products and services and the possibility of new entrants.
It's quite ok to limit your analysis to the industry serving customers in a single country.
This is a topic that might be helped along by a bit of casual field work in outlets that sell coffee makers.
Additional Topics
This section contains topics submitted and approved by participants in the course.
1. Conduct an industry and resource-based analysis on the motor vehicle dealer industry in Australia.
2. Conduct an industry analysis on the business to consumer domestic parcel delivery service industry in Australia. Consider the impact of online
retailing and how firms have adapted their competitive strategies and strategic positioning in this context.
3. The Federal Government's Higher Education Participation and Partnerships Program (HEPPP) has led to competition among Australian
Universities to increase recruitment of students form low socio-economic and disadvantaged backgrounds. Analyse this competitive environment
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(potential students as customers, government as an investor seeking returns in social benefit), and the strategic options for an Australian
university.
4. This topic examines the strategic options following the acquisition of competing brands and substantial market share in the clothing retail industry.
5. Creating a competitive advantage within the ACT construction industry.
6. Consider and analyse the industry that provides Employee Assistance Programs (EAPs) in a geographical region, using relevant ideas from the
course, looking at how businesses have responded to the challenges of creating and capturing value and developing sustainable competitive
advantage. What resources and capabilities have businesses used to give them a competitive edge in the industry? What strategies might lead to
a competitive advantage in this industry and what resources and capabilities would need to be harnessed?
7. A strategic analysis of the pulp and paper industry in Australia.
Feedback on the Individual Report
You may, optionally, submit a complete draft (not an outline or incomplete draft) of your essay on either or both of 5 June and 12 June. For each such
submission I will provide feedback covering the two or three major areas of improvement that could be made to the draft. I will endeavour to provide the
feedback within two working days. Feedback will not include speculation about the likely mark or grade.
Submissions for feedback received on or before 5 June will be processed on 6 and 7 June. Submissions for feedback received between 6 June to 12
June will be processed on 13 and 14 June. It will not be possible to provide feedback on reports submitted on or after 13 June.
Oral feedback on the final essay will be available by appointment after the final grades have been submitted.
Late submission of the Individual Report
If a report is submitted after the deadline of midday, 21 June it will not be marked unless an application for Special Consideration is approved. An
application for Special Consideration must:
1. where relevant include a medical report completed by a medical practitioner (an ordinary "medical certificate" is not sufficient);
2. include a copy of as much of the Individual Report as has been completed by 21 June; and,
3. be submitted as soon as practicable, preferably before or on the due date.
In general, a successful application for Special Consideration will result in the marking of the completed work with some upward adjustment of the mark,
rather than an extension of time.
Use of Individual Reports as exemplars and grade moderation
An important resource for enhancing educational quality is a stock of student work which can be de-identified and used as exemplars for future students
in ANU courses, and for grade moderation exercises for teaching staff. If you do not wish your Individual Report to be used for such purposes please
include a note to that effect on the front page of the report.
Exam 50%
The exam will be held on Friday, 31st May from 2.00pm to 5.00pm. It will be designed so that most students will be able complete it in about 2 hours.
This is a closed book exam, however paper dictionaries will be permitted, subject to inspection. Students will also be able to bring a "crib sheet" into
the exam. It must be:
1.
2.
3.
4.
on a single A4 sheet of paper (both sides can be used);
in the student's own handwriting;
marked clearly with the student's student number; and,
submitted with the examination paper.
It is quite ok to collaborate with other students on preparing the crib sheet, but the one you take into the exam must be an original in your own
handwriting.
The crib sheets will be available for collection after the exams have been marked.
The exam will comprise short answer and/or multiple choice questions and will be held on the afternoon of the last day of the course. The time allowed
for the exam will be about 50% more than is required (it's not a time trial).
The exam may contain questions which require reasonable familiarity with the cases discussed in class or group work sessions; that is, the kind of
familiarity that would come from having studied the cases and participated in the discussions.
This kind of exam is best suited to measuring learning at the Pass and Credit level, rather than Distinction and High Distinction, and the grading will be
weighted accordingly. It is to be expected that the majority of students in the course will at least pass the course on the marks from the group tasks and
the exam, without having to submit the Individual Report.
Availability of assessment results
It is intended that the results for the Group Tasks and the Exam be distributed early in the week following the Exam. This should assist students in
deciding whether or not to proceed with the Individual Report. The final results for the course will be recorded in ISIS in the usual way after approval by
the Committee of Examiners.
Scaling
It is not the policy of the Course Authority to scale the final marks for the course or "mark to a curve". Marking Criteria for the assessment tasks will be
explained at the beginning of the course.
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Change Log
Revision 1.9 was discussed and adopted in class on Wednesday, 22nd of May.
$Log: outline.markdown,v $
Revision 1.11 2013/05/27 12:02:57 ed
Added another Individual Report topic.
Revision 1.10 2013/05/27 11:40:54 ed
Added list of journals. Added Individual Report topics approved so far for course participants.
Revision 1.9 2013/05/16 12:05:18 ed
Added cases to course schedule. Added case preparation questions for the first week. Added an additional Individual Report Topic.
Revision 1.8 2013/05/11 01:29:55 ed
Added Change Log at the end.
Revision 1.7 2013/05/11 01:23:44 ed
Added sections on case study preparation and referencing for the Individual Report.
Revision 1.6 2013/05/07 11:32:53 ed
Minor typos. Added Log keyword to file for version tracking.
1.4 7 May 2013 - Added default topic for individual report
1.3 6 May 2013 - Removed references to Prof. D McKendrick, added case pack details, textbook reading guide.
1.2 24 April 2013 - Added daily schedule, location of lectures, fixed tables.
1.1 22 April 2013 Initial version
Validate HTML
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