THE UNIVERSITY OF TEXAS AT ARLINGTON BUSA 4322 – Organization Strategy Spring 2005 Section: 042 Instructor: Abdul Rasheed 230 Business Building Ph: 272-3867 e-mail: abdul@uta.edu Office Hours: By appointment Class Time and Location: Tuesdays and Thursdays 9:30 - 10:50 p.m. Required Text: Dess, G.G., Lumpkin, G.T., and Taylor, M.L. Strategic Management: Text and Cases.. McGraw-Hill Irwin 2004. Additional Reading: Businessweek, Fortune, Wall Street Journal, etc. Room 252 Course Description The focus of this Business Policy course is on corporate level and business unit-level strategy formulation and implementation. It requires the application of the knowledge and techniques learned in the earlier courses in an integrated fashion and also introduces the critical business skills of planning and managing strategic activities. The topics to be covered include the relationship of organizations to their environments, organizational mission and objectives, formal and informal approaches to strategic planning, the role of organizational structure in the context of strategy formulation and implementation and the mechanisms for monitoring and evaluating the effectiveness of strategic decisions and their implementation. Along with the text material, case studies will be used in this course as a mechanism for the development of analytical and decision-making skills and highlighting the reality of organizational and environmental uncertainties in strategic decision-making. In short, this course attempts to encourage an integrated multifunctional, "general management" perspective of the organization and its environment to develop skills necessary and appropriate to corporate-level and divisional-level policy analysis, formulation and implementation. You will be required to study the assigned text and cases, analyze them and share your insights with the rest of the class. Evaluation and Grading Procedure The final grade for the course will be based on performance in the following: Exams Wall Street Journal Assignment Term Paper Class Participation 50% 20% (See page 7 of syllabus) 20% 10% See next page for important information about evaluation and grading. Assessment Exam This class has been selected to receive an Assessment Exam this semester. Most likely, this exam will be administered by an external agency sometime in early to mid April. The Assessment Exam will cover the entire course material and will be an important part of determining whether our students are meeting their learning objectives. Your final grade in the course will reflect your performance in the Assessment Exam. The exact weight to be placed on the Exam is yet to be decided. Therefore, the distribution of weights provided on page 1 is subject to further changes. We may also be making minor changes to our class schedule to accommodate the Assessment Exam. BUSA 4322 Tentative Course Outline Session Date Topic/Assignment ________________________________________________________________________________________ __________ 1 Jan 18 Introduction/Administrative Matters ________________________________________________________________________________________ ______ 2 Jan 20 Chap 1: Strategic Management: Creating Competitive Advantages - Strategic Management Process - Stakeholder Management - Vision and Mission 3 Jan 25 Case: Funco Inc. (p. 802) Issues for Analysis 1. Should Funco Inc. discontinue selling video games with antisocial themes, even though doing so could reduce revenue and profit? 2. What should Funco Inc do about media requests for interviews or footage? 3. Should Funco Inc. expect widespread backlash from angry parents and, if so, what strategies could be employed in dealing with parents? 4. What actions should Funco Inc. take to prepare for potential boycotts or other activity by consumer activist groups? ________________________________________________________________________________________ ______ 4 Jan 27 Chap 2: Analyzing the External Environment of the Firm - General Environment 5 Feb 1 - Industry Analysis - Strategic Groups 6 Feb 3 7 Feb 8 Case: Fasten Your Seat Belts: Turbulence Ahead for Travel Agencies (p. 479) Issues for Analysis 1. Using Porter’s framework, discuss each of the five competitive forces facing travel agencies. 2. How has the intermediary role of travel agencies changed in the last decade? 3. Identify the emerging trends in the travel industry. 4. How should travel agencies position themselves for survival and /or growth? ________________________________________________________________________________________ _______ 8 Feb 10 Using Library Resources: An Overview ________________________________________________________________________________________ 3 9 Feb 15 Chap 3: Assessing the Internal Environment of the Firm - Value Chain Analysis & 10 - Resource-Based View - Evaluating Performance Feb 17 Case: KUVO Radio (p. 576) Issues for Analysis 1. What is your assessment of the management and direction of KUVO at this time? 2. How would you assess KUVO=s competitive situation? 3. What is KUVO currently doing that is particularly effective / ineffective? 4. How should KUVO position itself to raise money without compromising its commitment to the Hispanic community? 5. What recommendations would you have for KUVO? ________________________________________________________________________________________ _______ 11 Feb 22 Chap 4: Recognizing a Firm=s Intellectual Assets: Moving beyond a Firm=s Tangible Resources - Human Capital - Social Capital - Technology ________________________________________________________________________________________ ______ 12 Feb 24 Chap 5: Business Level Strategy - Cost Leadership - Differentiation - Industry Life Cycle Case: Outback Steakhouse Goes International (p. 449) Issues for Analysis 2. Evaluate the various aspects of Outback=s strategy. Why has the company been so successful? 3. Are Outback=s various strategy components sustainable in the domestic market? Are they transferable to the international markets? Why? Why not? 4. What markets should the company enter? In what order? What modifications in strategy will be required for these markets? 5. Is expansion into international markets appropriate for Outback at this time? _______________________________________________________________________________________ 4 _______ 13 Mar 1 Chap 6: Corporate-Level Strategy: Creating Value through Diversification - Related and Unrelated Diversification - Mergers, Acquisitions, Alliances and Internal Development - Managerial Motives 14 Mar 3 Overflow ________________________________________________________________________________________ 15 Mar 8 MID-TERM EXAM _______________________________________________________________________________________ _______ 16 Mar 10 Case:Wal-Mart Stores Inc. (p. 546) Issues for Analysis 1. Undertake a SWOT analysis of Wal-Mart. In your analysis of firm=s strengths, be sure to identify the firm=s core competences. 2. Identify and evaluate the strategies that Wal-Mart has pursued to maintain its growth and leadership position. 3. Discuss the importance of changes in the external environment to an organization like Wal-Mart. 4. How much does the firm miss Sam Walton? _______________________________________________________________________________________ _______ 17 Mar 22 Chap 7: International Strategy: Creating Value in Global Markets & 18 Mar 24 - National Competitiveness - International Expansion - Global and Multidomestic Strategies Case: Ellen Moore (A): Living and Working in Korea (p. 632) Issues for Analysis 1. What are the problems and why do they exist? 2. What alternatives exist at this point? 3. In Andrew=s position what would you do? 4. What changes would you recommend making for future projects? _______________________________________________________________________________________ 5 19 Mar 29 Strategies _______ Chap 8: The Internet and E-Commerce: Creating Value through E-Business - Internet and Five-Forces Analysis - Competitive Strategies - Sustainability 20 Mar 31 Case: AUCNET USA: A Real-Time On-Line Auto Auction Company (p. 702) Issues for Analysis 1. What should be done to increase the likelihood of this operation being successful? 2. Should AUCNET USA expand into other markets, such as auctioning heavy earth moving equipment in the U.S. or auctioning flowers in Europe? 3. What other business expansion opportunities could AUCNET USA pursue? ______________________________________________________________________________________ ________ 21 Apr 5 Chap 9: Implementing Strategy: Achieving Effective Strategic Control - Traditional Approach - Behavioral Control - Strategic Control at Different Levels 22 Apr 7 Case: A Nucor Commitment (p. 485) Issues for Analysis 1. Analyze the steel industry using the five forces model. 2. Identify the most important threats facing the steel industry. 3. Given the threat posed by international competition, why did Iverson lobby against import quotas? 4. Are there any indications of opportunities in the steel industry? 5. What is Nucor=s competitive advantage? How do the systems and culture of the company reinforce this competitive advantage? ______________________________________________________________________________________ ________ 23 Apr 12 Chap10: Implementing Strategy: Creating Effective Organizational Designs - Patterns of Growth - Structural Forms - Boundaryless Structures 24 Apr 14 Assurance of Learning Testing Related Discussion Overflow materials ______________________________________________________________________________________ 6 25 Apr 19 26 Apr 21 ________ Chap 11: Effective Strategic Leadership: Creating a Learning Organization and an Ethical Organization - Leadership Activities - Knowledge and Creativity - Ethics To be announced ______________________________________________________________________________________ ________ 27 Apr 26 Chap 12: Effective Strategic Leadership: Fostering Corporate Entrepreneurship and New Venture Creation - New Ventures and Small Business - Corporate Entrepreneurship - Entrepreneurial Orientation 28 Apr 28 Case: Badger Plastics: The Acquisition Process A, B, & C (p. 598) Issues for Analysis 1. What are the major challenges Davis faces and how should he respond to them? 2. What factors at Badger Plastics have impeded profitability? Why? 3. What are the benefits and drawbacks of implementing each of the two primary options under consideration - cutting wages/benefits or cutting jobs? 4. Was it appropriate to offer a small group of managers a deal in exchange of their help? (Especially the guaranteed bonus) 5. What questions can be raised about the ethics of Davis=s actions? _______________________________________________________________________________________ _______ 29 May 3 Case: Ben & Jerry’s Homemade Inc.: Passing the Torch (p. 820) Issues for Analysis 1. Was Robert Holland an appropriate selection for the position of CEO at B&J? Why? Why not? 2. What problems and issues is the company confronting? Undertake a SWOT analysis. 3. What alternatives are available to the company? 4. What is your prognosis for the company? Why? 7 30 May 5 Project Related Discussion and Wrap up ________________________________________________________________________________________ ________ FINAL EXAMS May 12 - Thursday 9 - 10:30 a.m. ________________________________________________________________________________________ Two Important Rules to Remember 1. 2. Switch off cell phones when you come to the class. During the class, you cannot engage in activities unrelated to the class like reading newspapers, doing assignments for other classes etc. Violation of the above rules will result in severe penalties 8 Wall Street Journal Assignment The purpose of this assignment is to analyze critically a recent article (dated within four months from the assignment due date) from the Wall Street Journal selected by the student. The assignment is to be done in groups of two. "Base articles" will be approved on a "first come/first served" basis. There will be only two groups permitted to use the same basic article. Approvals for base articles are to be obtained before Feb 10, 2005, and the assignment is due by March 8, 2005. An illustrative list of issues that the WSJ article may focus on are given below. Internal Growth Concentration Market Development Product Development Innovation Joint Ventures External Acquisition Growth Horizontal Integration Vertical Integration Concentric Diversification Conglomerate Diversification Disinvestment Retrenchment, Operating Efficiency Turnaround, Product/Marketing Refocus Divestiture, Liquidation Management Development Labor Relations Internationalization Marketing (or emphasis on another functional area) Corporate Culture Reorganization, Restructure Strategy Implementation Organization Structure Importance of Industry Context on Organizational Performance You should address issues such as the following (may differ with regard to topic areas): 1. 2. 3. What is the rationale (or lack thereof) for the action/decision? Is the action/decision consistent with the organization's overall strategy? What do you think will be the implications of the action/decision i.e., how should the action/decision improve or detract from the organization's performance? To address the above issues, the student should use a minimum of seven (7) outside sources of information. Suggested references include Annual Reports, 10-K Forms, Business Week, Wall Street Journal, Forbes, Fortune, and Moody's Industrial Manual. Do not rely too much on the same references -- select a variety. The written assignments should be approximately ten double-spaced (12 CPI) pages, (excluding references and Exhibits). Ensure that the paper has an executive summary and that it is divided into sections and subsections in a logical manner. "Stream of consciousness" papers will be severely penalized. 9