STRATEGIC MANAGEMENT
MANA 6383: Section 00359
Summer 2004
Tuesdays 6-10 PM
Instructor: Dr. Barbara Carlin
E-mail: bcarlin@uh.edu
Office:
310-A Melcher Hall
Office Phone: 713 743-4661
Office Hours: Tuesdays 5pm – 6pm, after class, or by appointment
Web Site:
WebCT
COURSE TEXT
Hitt, M.A., Ireland, R.D., Hoskisson, R.E., Strategic Management: Competitiveness and
Globalization, 5th Ed., South-Western College Publishing, Cincinnati: OH; 2001.
COURSE DESCRIPTION
Strategic Management is a capstone course for students in the MBA program. It is
intended to integrate material from other courses in the MBA program; particularly
finance, marketing, management, and MIS. The perspective is the organization as seen
by general managers, particularly the top management team. In some cases the unit of
analysis may be a division or an organizational unit, but in most cases the object of study
is the entire organization. Strategic Management is concerned with the determination of
the objectives of the organization and the policies and procedures that are necessary for
the organization to attain its objectives.
COURSE OBJECTIVES
1.
2.
3.
4.
5.
To introduce students to a strategic conceptual framework
To introduce and familiarize students with a set of analytical tools
To help students integrate the knowledge gained in other MBA courses
To help students sharpen their analytical and reasoning skills
To help students practice their communication skills
COURSE STRUCTURE
This class will be heavily dependent on student discussion. The first half of each class
will involve discussion of the textbook chapter assigned for that class. The second half of
each class will involve a case analysis and discussion. Students will be expected to be
prepared for both discussions. There will be a chapter and a case to be read each week.
Some number of students each week will be turning in a written evaluation of the case for
the week (described in greater detail below), but the rest of the class will still be expected
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to have read the case and to contribute to the discussion. As is described below, class
contribution is a large and important factor in the total grade.
COURSE EVALUATION
Assignment
Percent of
Total Grade
Points
Exams (Mid-term and Final)
Case Analysis
Class Contribution
50%
25%
25%
100 each
100
100
Grading
Grade
Percent Range
93 – 100
90 – 92.9
87 – 89.9
83 – 86.9
80 – 82.9
77 – 79.9
73 – 76.9
70 – 72.9
67 – 69.9
63 – 66.9
60 – 62.9
Below 60
A
AB+
B
BC+
C
CD+
D
DF
Total Points
372 and above
360 - 371
348 - 359
332 - 347
320 - 331
308 - 319
292 - 307
280 - 291
268 - 279
252 - 267
240 - 251
Below 240
Exams
There will be a mid-term and final exam. Each exam will be a take-home case analysis.
Group Mid-Term Take-home Case: I will assign a case as a take-home exam. The
class will be divided into groups of approximately 5 students each (to be decided by June
15th). You will have 2 weeks to analyze the case and submit your analysis. The Midterm must follow the following guidelines: maximum 5 pages (excluding exhibits etc.),
Times New Roman 12-point font, double line spacing, and 1-inch margins.
To analyze the case, the following structure will help your thinking:
A. Identify all of the pertinent problems/issues that management needs to address.
B. Perform whatever analysis and evaluation is appropriate.
C. Propose an action plan and set of recommendations addressing the issues you
identified.
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Please note that your written report does not have to follow this format. The
expectation of the written report is that it will be a memo to the key decision-maker in
the case.
Group Evaluations: Group members will submit personal evaluations of the relative
contribution of their team members to the mid-term exam on a scale of 1 to 10. The
assessments will be averaged and will be used to guide distribution of grades across the
team members.
Final Exam Take-home Case: The final examination will be similar to the midterm
exam in that it will also be a case, however, it will be an individual project.
Written Case Summary
Each person will submit one three page Executive Summary of a case. The summary
needs to include a recommendation for action and the critical information from the case
needed to support the recommendation. The three page limit is intended to encourage
conciseness and tight argumentation. If you feel that there is data in either graphical or
table form that is critical for the recommendation, an Appendix of such charts, graphs or
tables may be included. Like the exams, the case summaries should be targeted to the
critical executive decision maker in the case. The cases to be summarized are the cases
to be discussed in class and are listed in the Course Schedule section of this syllabus.
Also attached to this syllabus is a list of case questions to be considered when writing the
Executive Summary and which will form the basis of the case discussion. Cases will be
assigned on a first-come, first-served basis. The first case for which an Executive
Summary is due is the Boeing case, due June 15.
Deadlines and Length Limits
If you are going to be late in submitting an assignment, you are expected to contact
me. Lateness will result in a penalty in the grade for the project. The penalties are as
follows:


Minor delay (<1 week) - 10 points
Major delay (1 week or more) - you receive 0 points for the assignment
A similar policy is in place for projects that exceed length limits. Minor excesses
(10% or less) will normally result in penalties of 5 points, and significant excesses (more
than 10%) in a penalty of 10 points.
Class Contribution
It is expected that you will be present and prepared for every class, and willing to share
your views in the classroom discussion, both voluntarily and when called upon to do so.
You have an obligation to learn the material and to assist in the learning of your
classmates. To do so, you must make a meaningful contribution when you have the floor.
Summarizing case facts, repeating points already made, or simply agreeing with your
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classmates’ arguments does not constitute a meaningful contribution. Your goal should
be to provide insights that pass the "so-what" test. This can range from helping to sort out
the key facts in a complex case and to develop an analysis that builds on prior comments,
thereby moving the class discussion forward.
Every student is important to the class discussion. It is equally important that we
listen to one another and attempt to build upon or constructively critique prior comments.
Try to resist the temptation to jump to topics that are not specifically open for discussion.
Some of the things that will have an impact on effective participation and on which you
will be evaluated include:
 Are you a good listener?
 Are your contributions relevant to the discussion? Do your comments relate to
the comments of others and to the themes that the class is exploring together?
 Do your comments add to our understanding of the situation? Are you incisive?
Do you cut to the core of the problem?
 Are you willing to challenge the ideas that are being expressed?
 Are you willing to test new ideas or are all your comments “save”? (For example,
do you repeat case facts without analysis or conclusions or repeat comments
already made by someone else?)
 Do you integrate material from past classes or case discussions where
appropriate? Do your comments reflect cumulative learning over the course and
the entire curriculum or do you merely consider each case in isolation?
The individual cases vary in their analytic difficulty, ranging from evaluating
decisions already made (simple) to recommending a decision for a specific issue (more
difficult) to defining the issue(s) to be addressed and then recommending a specific
choice (most difficult). For these latter two types of cases, you will often find that your
understanding of the issues is improved if you put yourself into the position of the
protagonist in the case. Cases also vary in their conceptual difficulty, ranging from a
single framework that is easily understood (easy) to multiple frameworks or one
challenging framework (more difficult) to multiple and challenging frameworks (most
difficult). Understanding the cases along these dimensions will help you to prepare more
effectively and to allocate your time appropriately.
Preparation for the case discussion should begin with a quick reading of the assigned
text chapters and the case material. Then, it is worthwhile to review the assignment
questions for clues as to what issues require special attention. The next step is to reread
the case carefully, taking notes that sort information, facts, and observations under a
number of relevant headings. Most cases require that you perform some quantitative
analyses. Finally, preparation will include notes that can be used to guide your
contribution to class discussions. Please ensure that you have used in your analysis the
frameworks, tools, and ideas from the readings and the previous class discussions as
appropriate. Doing the reading(s) first is advised. Also ensure that you have exploited the
material in the case exhibits as much as possible. Many cases will have a question or two
for which you have to make a specific decision recommendation. Your recommendation
should be realistic, actionable, and supported by analysis (including numerical where
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appropriate). You should understand the decision criteria, formulate and evaluate
(quantitative and qualitative assessments) alternatives, and select a choice. You should
also understand the assumptions that underlie your recommendation. Finally, your
recommendation should consider implementation: who should carry out your
suggestions, when they should do it, and how.
During class, you should be prepared to lead off the discussion of any question in a
significant way as well as to discuss salient issues which are not addressed per se in the
assigned questions. As in any case discussion, it is crucial that you are well-prepared,
listen carefully to others, and build on/critique previous comments. Clearly, you must
participate in class if you are going to share your ideas with others. Occasionally,
students find that it is easier to participate effectively from the point of view of a
particular person or functional area, or to take on the role of devil’s advocate or expert (if
expertise is possessed) on the topic. It may be impossible for all students to participate in
each class. It is the quality of comments, not the quantity, that is germane. In grading
class contributions, I will be assessing the extent to which you have established a
meaningful presence in the classroom, over the course of the semester, by making solid
contributions on a regular basis. Feedback about class contribution will be offered to
students during office hours.
Since so much of the learning from a case-based course occurs in the classroom,
class attendance and participation is critical. You should understand that frequent absence
will seriously damage your class contribution grade. The reasoning behind this apparently
very stringent policy is that case classes demand active participation and attendance. If
you must miss a class it is your responsibility to arrange with your classmates for
briefings, announcements, etc.
Below are examples of how your class contributions will be calibrated:
Outstanding contributor: Contributions in class reflect exceptional preparation. Ideas
offered are always substantive, yield one or more major insights, and provide direction to
the class. Arguments are well-substantiated and persuasively presented. If this person
were not a class member, the quality of discussion would diminish significantly.
Good Contributor: Contributions reflect thorough preparation. Ideas are usually
substantive, provide good insights into the topic under discussion, and sometimes provide
direction for the class. Arguments reflect clear thinking. If this person were not a member
of the class, the quality of discussion would be diminished.
Adequate Contributor: Contributions in class reflect satisfactory preparation. Ideas are
sometimes substantive, provide generally useful insights, but seldom offer a major new
direction for the discussion. Arguments are sometimes presented, and are fairly wellsubstantiated and sometimes compelling. If this person were not a member of the class,
the quality of discussion would be somewhat diminished.
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Non-participant: The person has said little or nothing in this class to date. Therefore,
there is not an adequate basis for evaluation. If this person were not a member of the
class, the quality of discussion would not be changed.
Unsatisfactory Contributor: Contributions in class reflect inadequate preparation. Ideas
offered are seldom substantive, are often off-point, provide few (if any) insights, and give
no constructive direction to the class. Clear argument on the topic at hand and/or
integrative comments are absent.
Occasionally, some students find it difficult to participate effectively in class because
of language or other challenges. Please speak with the instructor if class participation is a
significant concern for you.
Extra Credit
An extra credit opportunity is being offered to the class this summer. A research project
is being conducted which needs the participation of MBA students. The project director
will explain the project to you in class, but work on the project will be conducted outside
of class time. Students who participate in this project (to the satisfaction of the project
director) will be eligible for up to 5 points of extra credit – to be added to the final total
points earned for the class.
In addition, under extreme circumstances (documentation may be required), make-ups or
extra assignments may be considered. However, these exceptions are not granted for
convenience only. Since exams are take-home and the due dates are known well in
advance, students should not find that an unexpected business trip will prevent them from
completing the work required as scheduled.
NOTES ON CLASSROOM POLICIES
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Because this is an integrative class, it is expected that a variety of viewpoints will
be represented in class discussion. This is important and necessary for strategic
analysis. All opinions are worth hearing and are to be respected.
Each student will use name cards.
If you e-mail attachments, please check for viruses.
Accommodations for Students with Disabilities will be respected. The Center for
Students with disABILITIES provides a wide variety of academic support
services to all currently enrolled UH students who have any type of mental or
physical disability of either temporary or permanent nature. If you feel you may
need assistance of this nature, you may wish to call the Center at X3-5400 for
information. In addition, you should let me know of any special needs as soon as
possible.
Writing is important and is taken seriously in this class. Errors of grammar,
syntax, and spelling indicate either haste or a lack of clarity in thinking. Consider
having spouses/roommates/friends read your reports before submission. Also,
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
there is a Writing Center on campus that is available for your use and
consultation. The UH Writing Center is located in 217 Agnes Arnold.
Please be considerate in your use of pagers and cell phones. Turn them off unless
it is absolutely necessary.
INSTRUCTOR EVALUATIONS
The Bauer College has a policy that requires all of its instructors to be evaluated by their
students. The results of these evaluations are important to provide feedback to instructors
on how their performance can be improved. In addition, these evaluations are carefully
considered in promotion, salary adjustment, and other important decisions. We openly
encourage students to provide feedback to the instructors and to the CBA through the
evaluation process.
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Case Summary Questions
Boeing
1. What are the competitive dynamics in the industry?
2. How did Boeing manage their supply chain?
3. Was their supply chain management process effective?
4. Where in the Value Chain did Boeing try to create value?
5. Do you think the introduction of the 777 was a good idea?
Embraer
1. What are the pros and cons of the regional airline industry?
2. What are the characteristics of the industry?
3. Who are Embraer’s customers?
4. Who are Embraer’s competitors?
5. What strategy is Embraer using?
6. Is this a good choice of strategy? Why or why not?
Priceline.com
1. What are the strengths and weaknesses of Priceline.com?
2. What are the threats and opportunities facing Priceline?
3. How did Priceline’s competitors enter the market?
4. What position in the market does Priceline occupy?
5. How can Priceline respond to its competitive threats?
Virgin Group
1. What is Virgin’s diversification strategy?
2. What is Virgin’s strategic mission or strategic intent?
3. Is Virgin over-stretching the brand? Why or why not?
4. Do you think that Branson can adequately manage this company?
Kentucky Fried Chicken
1. What are the driving forces in the fast-food industry?
2. Is the fast-food industry attractive?
3. What is KFC’s competitive advantage?
4. Why is Mexico an attractive market?
5. What is the general environment for KFC in Mexico?
6. What is the general environment for KFC in Latin America?
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Disney Corporation
1. What are Disney’s strengths and weaknesses?
2. What is the role of the Board of Directors at Disney?
3. Did Michael Eisner’s action effectively change the management at Disney? Why
or why not?
4. Do you think governance at Disney is effective? Why or why not?
Comeback of Caterpillar
1. What are the dynamics of competition in the heavy construction equipment
industry?
2. What were the sources of Caterpillar’s success up to the early 1980’s?
3. What were the strategies introduced by Schaefer, Fites, and Barton to reduce the
impact of cyclical downturns on Caterpillar’s results?
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Chapter Questions
Chapter 2: Environmental Analysis
1. What are the most important general environmental factors for your company?
2. Does government regulation play a major role in you’re your company? Might it
in the future?
3. Who are your company’s stakeholders?
4. Who, if anyone, does environmental scanning in your organization?
5. What industry(s) does your company participate in?
6. Is the industry clearly defined or do players move in an out readily?
7. What are the characteristics of your industry?
8. Prepare a brief five forces model of your industry.
Chapter 3: Resources and Capabilities
1. What is the difference between a capability and a core competence?
2. Does your company have a core competence?
3. What resources does your company have available?
4. Give the four criteria of sustainable competitive advantage, do you believe your
company meets those criteria? Do you think they apply to your company? Why
or why not?
5. What role, if any, does outsourcing play in your company?
Chapter 4: Business Level Strategy
1. What is the role of the customer in the development of business strategy?
2. What are Porter’s five generic strategic types?
3. Do these five business strategies create the conditions necessary for sustained
competitive advantage?
4. What is your company’s business strategy?
5. What is the role of the customer in your company?
6. Do you think a business strategy is necessary for profitability?
Chapter 5: Competitive Dynamics
1. How do market commonality and resource similarity create a competitive
situation?
2. What is the difference between a strategic and a tactical action?
3. What determines whether a market participant is likely to “attack” or not?
4. Are there ways to view the market and market competition other than warfare? If
yes, then what other views are there? If no, why not?
5. Who are your company’s primary competitors? Why?
6. Are there competitors that you ignore or that you haven’t considered?
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Chapter 6: Corporate Level Strategy
1. What, actually, constitutes diversification?
2. Why do companies diversify?
3. Can a company be too diversified or not diversified enough?
4. Is your company diversified? Why or why not?
5. Should it be more or less diversified? Why or why not?
6. Do you know where your management wants the company to go?
Chapter 7: Acquisition and Restructuring
1. Why do companies undertake mergers or acquisitions?
2. Why is it so hard for companies to successfully complete an acquisition?
3. What are the benefits and costs of making acquisitions or undertaking a
restructuring?
4. Has your company made an acquisition or been acquired by another? If yes, what
was the experience like?
Chapter 9: Cooperative Strategies
1. Why would a company enter into a cooperative strategy?
2. What kinds of cooperative strategies are there?
3. What are the pros and cons and cooperative strategies?
4. What kinds of skills and resources would a company need to be really successful
at leveraging cooperative strategies?
5. Does you company participate in strategic alliances? If yes, do you consider them
to be useful or detrimental? Why?
6. Do you think your company should be participating in more or fewer alliances?
Why?
Chapter 8: International Strategies
1. Why would a company do business anywhere other than their home country?
2. What are the problems of doing business internationally?
3. What are the benefits of doing business internationally?
4. What are the risks of doing business internationally and how can they be
mitigated?
5. In what countries does your company do business?
6. What are the difficulties your company faces in doing business internationally?
7. Would you like to travel internationally? If you do, what are the benefits and
drawbacks? If you don’t, would you like to? Why?
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Chapter 10: Corporate Governance
1. What do the authors mean by the phrase “separation of ownership and managerial
control”?
2. What is the Agency Problem?
3. What should be the role of Boards of Directors?
4. Do you think the Boards of Directors of Enron/Worldcom/Tyco should be held
responsible/accountable for the actions of company employees?
5. What role do you think executive compensation plays in executive performance?
6. Do you think governance is effective in your company?
7. How would you improve governance in your company?
Chapter 11: Organizational Structure and Controls
1. What is the structure of your company?
2. Does your organizational structure enhance or impede organizational
effectiveness?
3. What is the relationship of your organization’s structure to your strategy?
4. Does your organization structure provide the top management team with control
over the company? Why or why not?
5. Does your structure change periodically? Are these changes helpful, harmful, or
neutral for organizational performance?
Chapter 12: Strategic Leadership
1. Does your company have a “top management team” or does the CEO make all the
decisions?
2. How decentralized is decision making in your company?
3. Are your top decision makers effective or could the company perform just as well
without them?
4. What makes a corporate leader successful or effective?
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