THE UNIVERSITY OF NORTH CAROLINA AT GREENSBORO
Joseph M. Bryan School of Business and Economics
STRATEGIC ANALYSIS
MBA 620
SPRING 2009
Wed 6:30-9:20 PM
Bryan 206
1 GENERAL INFORMATION
1.1 Contact Information
Professor:
Office:
Phone:
Office Hours:
E-mail:
Dr. Riikka M. Sarala
348 Bryan
334- 5457
Wed 5:00-6:00 PM and by appointment
rmsarala@uncg.edu
1.2 Pre-requisites
Pre-requisites:
Co-requisites:
604, 606, 609, 612, 613
611, 618
1.3 Course Material
Textbook:
Grant (2008). Contemporary Strategy Analysis 6th edition,
Blackwell Publishing, ISBN 978-4051-6309-5
Cases:
Distributed in class or in Blackboard
Additional readings: Distributed in class
1.4 Course Description
Strategic analysis is concerned with analyzing the competitive position and long-term
development of the business enterprise to ensure its survival and success.
To survive and prosper over the long term, a firm must create and sustain a competitive
advantage. This course will equip you with the frameworks, tools, and concepts you
need to analyze and understand the sources of superior firm performance. The course
focuses on two areas of analysis: the external environment of the firm and the internal
environment of the firm.
While an analysis of the external environment through industry and competitor
analysis gives the firm an insight into what it must do to succeed, it does not throw much
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light on what it can do. Analyzing the internal environment of the firm through resource
and capability analysis provides an insight into a firm’s strengths and weaknesses (as
they relate to the external environment). An understanding of a firm’s internal strengths
enables a firm to fully exploit and build its capabilities to compete successfully.
Finally, we shall bring our external and internal analyses together to consider the
formulation and implementation of strategies that can create and sustain competitive
advantage.
Students are placed in the position of key decision makers (or their advisers) and are
asked to solve problems related to the development or maintenance of the competitive
advantage of the firm.
1.5 Learning Objectives
LO1: To equip the student with a variety of models and tools that can be applied to
determine and analyze firm strategy.
LO2: To provide the student an opportunity to critically apply these models and tools to
analyze organizational positions, initiatives and to recommend future courses of
action.
LO3: To provide the student an opportunity to practice defending their recommended
courses of strategic action.
1.6 Course Structure
Each physical class meeting includes:
1. Lecture and discussion of the assigned chapters and readings
2. A break
3. Continuation of lecture and/or presentation and discussion of assigned case studies
1.7 Weight of the Grading Items
1.
2.
3.
4.
5.
Assignment 1
Assignment 2
Group case presentation
Class participation
Exam
15%
15%
20%
25%
25%
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1.8 Grading Scale
Score
93-100
90 - 92
88- 89
83- 87
Grade
A
AB+
B
Score
80-82
78-79
73- 77
70-72
Grade
BC+
C
C-
Score
60-69
Below 600
Grade
D
F
2 GRADING ITEMS DESCRIPTION
2.1 Assignment 1: Case report 15% (For submission on Jan 28)
THE US AIRLINE INDUSTRY
1. Assess the overall financial performance of the US airline industry during 1980-2006.
2. To what extent can the US airline industry’s low average profitability be attributed to
the structure of the industry?
3. Which of Porter’s five forces has had the biggest impact in depressing industry
profitability?
Your report should be clear, concise, cogently analyzed, and not exceed 700 words.
Submit a hard copy of your case at the beginning of the class in which the case is being
discussed (Jan 28). Late assignments will not be graded.
2.2 Assignment 2: Analysis of your organization’s resources and capabilities 15%
(For submission on Feb 5)
Prepare a resource/capability analysis of your own organization. Write a short memo
(500 word maximum) that:
1. Identifies the principal resources and capabilities needed to compete effectively in your
area of business.
2. Evaluates your organization’s resources and capabilities in terms of (a) strengths and
weaknesses relative to competitors’ and (b) their importance for achieving sustainable
competitive advantage.
3. Displays your results on a two-dimensional diagram similar to Figure 5.8 in the
textbook.
Submit a hard copy of your memo at the beginning of the class on Feb 5. Late
assignments will not be graded.
Come to class prepared to show your diagram (1 Power Point slide) and discuss your
analysis.
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2.3 Group Case Presentation 20%
Students have been pre-assigned to groups as indicated in Appendix 1 of the syllabus.
The group will lead the case discussion by presenting their analysis to the class. The
presentation time per group is 20 minutes. An additional 20 minutes will then be allotted
for questions and general class discussions by other students in the course.
Each group is required to e-mail the final presentation to the instructor
(rmsarala@uncg.edu) no later than 24h before the presentation. You will lose points
equal to 10% of the group case presentation if you fail to e-mail the final presentation
before the deadline.
The presentation should include the following parts:
-Outline of the presentation
-Analysis
-Conclusion
The evaluation criteria for the presentation are as follows:
-Structure
-Group effort: Equal participation of all participants in the presentation
-Quality of the analyses underlying the presentation
-Application of theory
-Critical thinking
-Case facts are critically analyzed, not simply repeated
-Each one of the case questions is clearly answered
-Audience involvement and entertainment value
-Quality of the slides
-All aspects of delivery
-Responses to subsequent questioning
The schedule for Group Case Presentation is provided on page 9 of the syllabus.
2.4 Class Participation 25%
In this course I place a special premium on active class participation. Your participation
in class is essential to your own learning and that of your peers. Please come to class
having read the assigned case(s), having thought about the assignment questions, and
anticipating how the concepts and frameworks in the textbook relate to the issues in the
case. Considering the amount of material that we are covering, our class periods are short
– hence, please be concise and to the point in making your comments.
In evaluating class participation, I will be asking the following questions:
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1. Is the participant a good listener? Do the comments link previous contributions and
with the overall direction of the discussion?
2. Do the comments reflect careful analysis?
3. Do the comments add to our understanding of the situation?
4. Is there a willingness to try new ideas or are all comments “safe”?
5. Is the participant considerate of other class members? (For example, in making
economical use of “airtime”.)
Students begin the course with a course participation mark of 90 and adjustments are
made upward for exceeding expectations, downward for falling below expectations and
are unchanged for meeting expectations. Expectations are that the student attends all
classes, is respectful of the peer learning environment and voluntarily participates
verbally in in-class activities such as case discussions, lecture discussions and class
exercises. A student who does not participate verbally but satisfies all the other
expectations will obtain a maximum mark of 70.
2.5 Final Exam 25%
There will be a final examination on the last day of class. The exam will be based on a
case.
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3 COURSE POLICIES
3.1 Absence
Class absence, regardless of the validity of the excuse, will negatively affect your class
participation grade. There are no make-up assignments for missed classes.
If you miss a class, you should contact your group members to find out what was
discussed in class. Read the assigned chapters and familiarize yourself with the session
slides.
If you cannot attend and there is an assignment to submit, you are expected to submit the
assignment by e-mail before the respective class period. Assignments submitted after
the respective class period will not be graded.
3.2 Academic Integrity
Participants are expected to recognize their responsibility to uphold the Academic
Integrity Policies of UNCG: http://academicintegrity.uncg.edu/complete/
3.3 Blackboard
The lecture slides are available for download through Blackboard before each session.
The participant is responsible for checking Blackboard regularly for course material and
announcements.
3.4 E-mail Communication
For purposes of this course I will assume that you check your UNCG e-mail daily. Thus,
I assume that you will be aware of any communications or requests sent at least 24
hours prior to our class meetings. If you have any questions about UNCG email you
can obtain assistance by calling 256-tech during normal business hours or by asking
assistance in the Bryan School computer labs.
3.5 Classroom Conduct
The course subscribes to the UNCG professional standards. Please arrive on time for
class with uninterrupted attendance for the duration of the class. Please maintain a
professional atmosphere: using respectful comments and humor, employing appropriate
manners and decorum, utilizing computers and technology suitably (e.g. silencing
wireless devices, no web-browsing or emailing), and refraining from distracting or
disrespectful activities (e.g. avoiding side conversations and games). Refer to the
following for more details on school policies and procedures:
http://www.uncg.edu/bae/faculty_student_guidelines.pdf
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3.6 Grading Policy
Grades are non-negotiable and final grades can only be changed due to incorrect
calculation or input errors. If you have questions as to the validity of a grade this must
be brought to my attention in writing within one (1) week of the day/date the grade
is posted.
Grades will not be determined by a standard bell curve whereby the majority of the class
receives a ‘C’ and the minority receives otherwise. Grades will be based on the number
of points accumulated relative to the total number of points allotted in the course.
3.7 Inclement Weather
The course follows the directions of the institution. The UNCG will remain open during
adverse weather conditions unless the Chancellor makes the administrative
decision to make a schedule change. Students can obtain details on those decisions from
the Adverse Weather Line at (336) 224-4400 or the web address:
http://www.uncg.edu/iss/weather.htm
3.8 Laptop Policy
Computer use is not necessary in class. Therefore, I strongly suggest no open laptops in
class. If you use your laptop for efficiency in taking notes, you must restrict use to this
activity only. Surfing, IM and other unrelated use of your laptop is not permitted in class.
3.9 Important Remarks
Please note that the pace of this course is intensive. It covers in 7 weeks what is covered
in a typical 16 week semester. Therefore, it is important to dedicate enough time for
completing the assignments and reviewing the course reading material. Preparing for a
class session takes approximately 3 hours.
The instructor reserves the right to make changes to this document as needed.
Changes in the schedule of the course, or in the assignments, are announced during class.
Also, materials such as current newspaper articles may be added to increase your
knowledge and efficiency in a particular subject area. It is your responsibility to connect
with your classmates to ensure that you have received all of the changes, handouts, etc.
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4 CLASS SCHEDULE
Session
Date
Theory and Readings
In-Class Discussions
Session 1
Jan 21
-Introduction to the
course
-What is strategy?
-CH 1
-Case Discussion: Madonna
Session 2
Jan 28
-External environment:
Industry analysis
-CH 3, 4
-Case Discussion:
The US Airline Industry in 2007
-Deadline: Assignment 1
Session 3
Feb 4
-Internal environmentResources and
capabilities
-CH 5
-Class Discussion:
Analysis of your
organization’s
resources and
capabilities
-Deadline:
Assignment 2
Session 4
Feb 11
-Competitive advantage
and business strategy
-CH 7, 8, 9
-Case Discussion:
Harley-Davidson
Session 5
Feb 18
-Vertical integration and
diversification
-CH 13, 15
-Case Presentation:
Birds Eye (Group 1)
-Case Presentation: :
The Virgin group of
Companies (Group 2)
Session 6
Feb 25
- Multibusiness
corporations and
multinational strategies
-Course evaluations
(Bring your laptop!)
-CH 14, 16
-Case Presentation:
Jeff Immelt at GE
(Group 3)
-Case Presentation:
Outback Steakhouse
(Group 4)
Session 7
Mar 4
-Conclusion of the course
Final exam
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-Case Discussion:
Wal-Mart Stores Inc.
2007
5 STUDENT GROUPS
GROUP 1
Melanie Morris
N’goran M’bra
Amy Strickland
Elwood Shepherd
GROUP 3
Rachel Moody
Richard Chartrand
Jeffrey Lacey
GROUP 2
Freddie Ingle
Sarah McGuire
James Reynolds
GROUP 4
George Upper
Heather Showstead
Claudia Spillman
Presentation Dates and Cases:
Feb 18, Group 1: Birds Eye
Feb 18, Group 2: The Virgin Group of Companies
Feb 25, Group 3: Jeff Immelt at GE
Feb 25, Group 4: Outback Steakhouse
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6 CASE DISCUSSION QUESTIONS
Session 1
Case discussion topic:
Case:
Identifying strategy
Madonna
1. Why has Madonna been so successful in the world of entertainment?
2. Does Madonna have a strategy? If so, what are the main elements of that strategy?
Session 2
Case discussion topic:
Case:
Industry analysis
The US Airline industry in 2007
1. Assess the overall financial performance of the US airline industry during 1980-2006.
2. To what extent can the US airline industry’s low average profitability be attributed to the
structure of the industry?
3. Which of Porter’s five forces has had the biggest impact in depressing industry profitability?
4. What factors have caused the upturn in profitability since 2004/5?
Session 3
Case discussion topic:
Case:
Analysis of resources and capabilities
Wal-Mart Stores Inc. 2007
1. To what extent is Wal-Mart’s performance attributable to industry attractiveness and to what
extent to competitive advantage?
2. In which of Wal-Mart’s principal functions and activities do Wal-Mart’s main competitive
advantages lie? Identify the distinctive resources and capabilities in each of these
functions/activities.
3. To what extent is Wal-Mart’s competitive advantage sustainable?
4. What kinds of threats does Wal-Mart face?
Session 4
Case discussion topic:
Case:
Competitive advantage through diversification strategy
Harley Davidson
1. Identify Harley-Davidson’s strategy.
2. Why has Harley-Davidson’s strategy been so successful?
3. Compare Harley-Davidson’s resources and capabilities with those of Honda. What does your
analysis imply for Harley’s potential to establish cost and differentiation advantage over Honda?
4. What threats to continued success does Harley-Davidson face?
5. How can Harley-Davidson sustain and enhance its competitive position?
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Session 5
Case discussion topic:
Case:
Vertical integration
Birds Eye (Presented by group 1)
1. Why did Birds Eye develop as a vertically integrated producer?
2. In sourcing raw materials, explain why Birds Eye adopted different arrangements for peas,
fish, and meat?
3. Why did the frozen food industry de-integrate?
4. What problems did Birds Eye have in the late 1970s?
5. What should Birds Eye have done in 1979?
Case discussion topic:
Case:
Diversification
The Virgin Group (Presented by group 2)
1. What common resources and capabilities link the separate Virgin companies?
2. Which businesses, if any, should Branson consider divesting?
3. What is the Virgin business model?
4. What changes in the financial structure, organizational structure, and management systems of
the Virgin Group would you recommend?
Session 6
Case discussion topic:
Case:
Managing the multibusiness corporation
Jeff Immelt at GE, 2001-2006 (Presented by group 3)
1. What were the principal strategic and organizational changes introduced by Immelt at GE?
2. Assess the potential for these changes to put GE on track of increased profit growth and
increased shareholder return?
3. Are here alternative corporate strategies that Immelt should consider? In particular, should
Immelt consider breaking up GE or should he initiate a new drive for growth through
acquisition?
4. How great are the implementation problems of Immelt’s strategy? To what extent does Immelt
need to develop a new approach to organizational structure and management systems?
Case discussion topic:
Case:
International strategy
Outback Steakhouse (Presented by group 4)
1. What are the principal features of Outback Steakhouse’s strategy in the US? Why has the
strategy been so successful?
2. What are the key elements of the international expansion strategy being proposed by Hugh
Connerty?
3. Assess the proposed strategy in relation to: (a) Should Outback Steakhouse expand
internationally, or would it be better to expand through starting new restaurant chains within the
US? (b) Does the strategy outlined by Connerty make sense?
4. If Outback is to expand internationally, advise Chris Sullivan on: (a) The optimal rate of
international expansion; (b) The best mode of entry into foreign markets (e.g. wholly owned
subsidiary, JV, franchise); (c) Which country(ies) to enter first; (d) Whether Connerty is the right
person to head the International Division.
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University of North Carolina at Greensboro
Bryan School of Business and Economics
MBA 620: Strategic Analysis
SPRING 2009
Course Participant Information Form
Please submit by e-mail (rmsarala@uncg.edu) before Jan 21, 2009
1.
Your full name
2.
The name you prefer to be called
3.
Your hometown and country (originally)
4.
Your previous academic experience (university, degree, major)
5.
The program you are in at UNCG
6.
Your previous work experience (company, function, position)
7.
Your current job (company, function, position)
8.
Your motivation and learning goal for this course (other than: “This is a compulsory course.”)
9.
Your career goal
10. Your hobbies/interests
11. A little known fact about you
Other information that you would like me to know
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