Syllabus STRA 5370 F.. - Southern Methodist University

EDWIN L. COX SCHOOL OF BUSINESS

SOUTHERN METHODIST UNIVERSITY

STRATEGIC MANAGEMENT IN A GLOBAL ECONOMY

STRA 5370 - Fall 2007

Section 003 - TTh 2:00 pm - 3:20 pm – 253 MB

Professor Gary Moskowitz

Office: 352 Maguire

E-mail: gmoskowi@mail.cox.smu.edu

Phone: (214) 768-1575

Office Hours: Thursdays, 3:30 pm to 4:30 pm, and by appointment

Overview

This is the capstone course for the BBA program: it is designed to build upon previous and concurrent work in the program and integrate various functional areas to provide a “total business” perspective. Strategic Management in a Global Economy focuses on the job, viewpoint, and skills of the general manager of the firm in diagnosing what is critical in business situations and in finding realistic solutions to strategic and organizational problems.

We will examine issues central to the long- and short-term competitive position of the company.

The initial focus is on strategy at the level of the business unit, which is the foundation for competitive analysis. We will examine the effects of the firm’s resources and capabilities, as well as its industry, on business unit strategy. This is followed by a discussion of the changes in strategy over time. From here, we will move to strategy execution, vertical integration, global strategy, and multibusiness firms. The semester concludes with a focus on corporate governance and strategic planning.

Most of the class sessions will revolve around a discussion of an assigned case. Consistent with traditional case instruction techniques, students will be called upon to discuss the case using the concepts and models taught in this class.

Prerequisites

Prerequisites for this course are ACCT 2311 and 2312, ITOM 2305 or STAT 2301/2331 or

EMIS 4340 or EMIS 5370, FINA 3320, MKTG 3340 and/or ADV 3362, and MNO 3370.

STRA 5370 – Strategic Management in a Global Economy

Prof. Gary Moskowitz - Fall 2007

Page 2 of 17

Readings

A textbook and a case pack are required for this course.



The textbook is Modern Competitive Strategy, Second Edition , by Gordon Walker. It is available for purchase at the SMU bookstore.



The case pack is available online from www.study.net.

Disability Accommodations

Students who need academic accommodations for a disability must first contact Ms. Rebecca

Marin, Coordinator, Services for Students with Disabilities (214-768-4557) to verify the disability and establish eligibility for accommodations. These students should then schedule an appointment with the professor to make appropriate arrangements. (See University Policy No.

2.4.)

Excused Absences for University Extracurricular Activities

Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue)

Please see the section titled “Attendance” for further information.

Religious Observance

Religiously observant students who wish to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See

University Policy No. 1.9.)

Electronic Devices in the Classroom

Laptop computers are permitted in the classroom. Students are asked to use laptop computers and other electronic devices solely for class purposes during class sessions.



Page 3 of 17

Attendance

Students are expected to attend every class session. As noted below in the section titled

“Evaluation,” a portion of your grade is based on class participation.

Please note that an excused absence is one for which the student will be given the opportunity to earn credit for the missed class by completing an assignment. The student must complete the assignment in a reasonable amount of time, and the student’s credit for the missed class will be based on the quality of the completed assignment.

For absences which were foreseeable by the student (e.g., officially-sanctioned extracurricular activities, travel, job interviews), you may turn in a written case analysis for that day’s case.

Please follow the format described below. Case write-ups for foreseeable absences must be turned in before the start of the missed class.

For absences which were not foreseeable by the student (e.g., medical emergencies, funerals), you may turn in a written case analysis for that day’s case as soon as practicable after the missed class. Please follow the format described below. You will need to provide written documentation of your unforeseeable absence.

Written case analyses in lieu of class attendance should be no more than 3 pages in length

(double spaced, 12 point font, one inch margins), and should address the questions for that case in listed in this syllabus. If no other means of transmitting the case to the professor is available, then students should use e-mail. In writing the case analysis, you should be sure to use the models and frameworks that we discuss in class (including, without limitation, the frameworks from the reading associated with the case being written up).

Preparation

I expect you to be fully prepared for each class. I will cold call on students to open the case and to continue the discussion of the case.

Case discussions are intended to present dilemmas as they are encountered by managers, so it is important to deal with the cases as you find them (i.e., no “Monday morning quarterbacking” based on knowledge of what happened after the time frame of the case). In case discussions, the present tense should be interpreted as referring to the time frame of the case or its end. Please do not prepare for the class discussion by seeking out additional or more recent data on the firms or industries in the case.

In evaluating the cases, you should use the concepts and models discussed in the readings.

Learning how to apply these concepts and models is essential for success in this class. Please note that the concepts and models from both the current day’s readings and from prior readings are often useful in the case analysis.



Page 4 of 17

Group work is helpful for case preparation. You are encouraged to work with your classmates when studying for class (please see the Honor Code section for additional information).

Honor Code

The principles and articles of the Honor Code of Southern Methodist University are in force. In addition, the following six principles apply to this class:

1) Discussion with others (except other group members for group projects) about written submissions to be graded (including, without limitation, exams) is a violation of the

Honor Code. Also, please note that passing case notes and class handouts to students who have yet to take the course, who took the class in a previous semester, or who are enrolled in other sections is also a violation of the Honor Code.

However, except as noted above, discussion of cases prior to class with other students who are currently taking this course is not only allowed, but is encouraged.

2) Group projects should reflect the work only of group members. Each and every member of a group should contribute to the final group project in an equitable manner.

3) All quizzes, exams, individual case write-ups, and participation write-ups should reflect your own effort only. Revealing the content of any graded item to a student who has not yet taken the quiz or exam or written up the case is strictly prohibited.

4)

Plagiarizing (the misrepresentation of work done by others as being one’s own work) is a violation of the honor code. Remember to cite all sources of information and ideas to prevent problems.

5) You may not submit the same paper (or substantially similar papers) to meet the requirements of more than one course without the written consent of all instructors concerned.

6) You may not sign the attendance sheet with any name other than your own.

If you have any questions about the Honor Code please contact the instructor.

Evaluation

You will receive the grade that you deserve. The number of students to receive each grade will be based on the Cox School’s guidelines concerning grade distributions. A minimum level of performance in each grade component will be required for passing the course. In determining the final course grades, I will add up each student’s grade on the components, weighted by the appropriate amount. I will then assign the final grades based on natural break points in the distribution.



Page 5 of 17

There are three components to your grade in this class:

1) Class participation during case discussions will account for 25% of your grade.

Participation is based on the quality and quantity of your contribution to the class discussion. Students who are unprepared will be marked down; this is especially true for students who do not alert me to their unprepared status at the start of class. Please note that attendance does not constitute participation.

Only students who sign in can receive credit for participation in that class session.

Hints for good participation credit: a) Always be prepared for class. b) Make points that go beyond the mere recitation of case facts. Provide analysis and synthesis, not opinions. Use evidence to back up your points. c) Use your calculator. Quantitative analysis can be very powerful. d) e)

Listen to your classmates and contribute to the discussion.

Avoid giving one or two word answers. Also, avoid being an airbag.

I reserve the right to give surprise quizzes during the semester. If I believe that student preparation and participation is inadequate, the likelihood of a quiz will increase. Quiz grades will count as a part of the participation grade.

2) Two written examinations will each count for 25% of your grade. The exam dates are noted below. More information on the exams will be distributed in class.

3) A group project will account for 25% of your grade.

The Group Final Project

You will form a group of no more than 5 students. There are two parts to the project: an ungraded proposal, and a written paper.

To begin, you must select an industry and a firm in that industry, with two constraints: (1) you may not select any industries or firms which we will otherwise be studying in class (e.g., airlines, quick service restaurants, or artificial sweeteners); and (2) your firm of focus should be a U.S. based, publicly-traded company, thereby ensuring availability of information to both the students and the professor. You will be analyzing an entire company (i.e., not just a division of a company).

The proposal for the project is due by Tuesday, October 16, 2007 (however, I encourage you to submit the proposal earlier). This proposal consists of your group’s membership list, the names of the industry and company of choice, a copy of the Value Line and Hoover’s reports on your company (these are available in the BIC), and a one page summary of why you find this



Page 6 of 17 company interesting from a strategic point of view. In my experience, the best group projects are those that are written on companies that face an interesting strategic problem. Please do not pick a company that is too large or complicated, or too small and simple. In recent years, group projects have included companies in the photography, beer/wine, specialty retailing, toy, cosmetics, furniture, candy, and breakfast cereal industries (this is a non-exhaustive list; you may find a suitable company in other industries).

The final paper is due on Friday, December 14, 2007 at 11:30 am. This paper is not to exceed 15 pages of text; you are permitted an unlimited number of exhibits. The paper must be typed, double spaced, and formatted with reasonable type size (no less than 12 point) and one inch margins. All exhibits must be referenced to support statements in the text. All sources of information must be referenced, and you should include a bibliography of all references used in the paper (you may use any generally accepted bibliographic format). The text of the paper should be a formal written paper (e.g., no bullet points, etc.). The exhibits may be shown in any format that clearly communicates the point of the exhibit (i.e., bullet points are permitted).

Exhibits should be used to show quantitative or graphical information only; do not use exhibits as a means of going past the 15 page limit.

Within the final paper, focus on the following areas:

For your industry, you must describe and analyze

- Industry structure

- Major competitors and their position, strategy, and source of competitive advantage

- Future trends in the industry

For your firm, you must describe that firm’s

-

-

-

Strategy

Competitive position

Current problems

Finally, for your firm, and based on the above analysis

- Recommend specific strategic changes as appropriate.

Please note that this assignment requires analysis and interpretation – and not just facts. You need to demonstrate that you have learned the material taught in this class. A good recommendation (i.e., one that follows from your analysis) is essential for a good grade on the group project. The strategic recommendation should be large enough to have a material impact on the company. Please avoid recommendations that consist of “do more of the same, only do it better.” Remember to peel the onion!



Page 7 of 17

Some helpful hints for the written paper:



Use the analytic techniques and frameworks taught in this course. I am looking for you to demonstrate that you have learned the materials taught in this class.



You are not writing a Harvard-style case. A Harvard-style case lays out the company’s problem, and leaves the solution for the class discussion. In this project, you are to both lay out the problem and provide a solution.



Please include page numbers.

 Avoid the use of the passive tense. “A strategy for the company has been formulated” is unclear, as it does not indicate who created the strategy. “We recommend the following strategy for the company” is a much better phrase. Please note that the use of the first person will often make the paper much clearer.



Be sure to footnote the source of all factual information. In general, all numbers in the text and the exhibits should be accompanied by the name of their source.



Numerical analysis is usually a good idea. Please be sure that the analysis has something interesting to say (for example, simply calculating a growth rate in sales or a common-sized income statement is not particularly interesting).



Please be sure to include dollar signs, percent signs, etc. Numbers should have identifying information attached, including the type of information (e.g., sales, income, assets), the year of the information; and the company to whom this information applies.



The exhibits should be placed in the same order as they are referred to in the text of the paper.

 Avoid words like “clearly” and “obviously.”

 Avoid double negatives (e.g., “I do not think that the company chose a bad strategy”).

 Do not say “management must formulate a strategy.” I want to know what you would do.



Do not ask for more information (e.g., “management should do some market research”).



If you write carefully, you can say a lot in 15 pages. If you write poorly, you can say very little in 15 pages. Please use exhibits wisely.



Use more sources of information than just those available on the internet. Do not believe everything you read on a company’s website. Please cite news articles that you read on the web as a newspaper (or magazine) article first, and list its web location parenthetically.



Page 8 of 17

My Approach to Grading

My approach to grading describes both what I look for in class comments and written assignments and the standards by which I grade.

My grading standards are as follows:

F: Does not meet the standards for passing the course.

D: Does not meet the standards for a C.

C: Demonstrates effective use of the concepts, models, and techniques taught in the course in answering case questions.

B: Meets requirements for a C and continues the analysis to ask the next logical question.

A: Meets requirements for a B and continues the analysis to answer the next logical question.

Please note that the grading standards follow the concept of “peeling the onion.” Each problem has many layers: as you address each issue (by peeling the onion), you reveal another layer of issues.

In grading your assignments, I look for effective use of the concepts, models, and techniques taught in this class. You should begin by identifying the problem facing the strategic decision maker in the case (this may be an area for “peeling the onion”). You should use analytic tools to develop an answer to this strategic problem. The course concepts should support your recommendation, which should be clearly articulated. Use exhibits to provide support for your recommendation. I will be grading you on the choice of analytic tools, the effectiveness of your use of such tools, and on the support for and quality of the recommendation. Be creative in making recommendations, provided that they are supported by your analysis.

All requests for a re-examination of a grade must be submitted in writing within two weeks from the date the graded papers were returned to the class. This written request must include a description of the specific bases upon which the request is being made.



Page 9 of 17

LIST OF ASSIGNMENTS

Note on the assignments: The questions listed below are intended to provide a starting point for your analysis of the case. The class discussion may include other questions and topics in addition to the listed questions.

Course Introduction

Thursday, August 23, 2007

Reading: Textbook, Chapter 1: What is Strategy?

Discussion: Course introduction

The Concept of Strategy

Tuesday, August 28, 2007

Topic:

Case:

The Concept of Strategy

EMI and the CT Scanner (A)

Questions: 1) What should Read do regarding the CT project? What are his options?

What will it take to succeed in this market? What are the risks?

2) What do you project sales to be (in units) for CT scanners each year for the first five years? Specify EMI and rest of industry sales. Upon what do you base these sales projections?

3) If you think EMI should proceed, at what rate--incrementally/cautiously or aggressively? Why?

Competitive Advantage

Thursday, August 30, 2007

Topic: Competitive Advantage – Part 1

Reading: Textbook, Chapter 2: Building Competitive Advantage

Discussion: Competitive Advantage



Page 10 of 17

Tuesday, September 4, 2007

Topic: Competitive Advantage – Part 2

Case: Matching Dell

Questions: 1)

What is Dell’s strategy?

2) Why has Dell’s strategy been so successful?

3) How effective have competitors been in responding to the challenge posed by Dell?

4) What strategic actions would you recommend to each of Dell’s rivals

(IBM, Compaq, HP, and Gateway)?

Industry Analysis

Thursday, September 6, 2007

Topic:

Reading:

Industry Analysis – Part 1

Textbook, Chapter 3: Industry Analysis

Discussion: Industry Analysis


Topic: Industry Analysis – Part 2

Case: The U.S. Airline Industry in 1995

Questions: 1) Is this industry attractive? Why or why not?

2) What are the strategies of the dominant players? How effective are they?

3)

Why?

What other strategies are working? Why?


Topic:

NOTE:

Research Resources for the Final Group Project

The discussion will be led by BIC librarian Karen Leeseberg.


Topic: Industry Analysis – Part 3

Case: The U.S. Airline Industry in 1995 – continuation of prior week’s class

Questions:

Complete the questions from the prior week’s class



Page 11 of 17


Topic:

Case:


Cola Wars Continue: Coke and Pepsi in 2006

Questions: 1) Is this industry attractive or unattractive for incumbents?

2) What are the consequences of the competitiveness of the soft drink

3) industry?

Why did Coke and Pepsi vertically integrate forward?


Topic:

Case #1:


The Health Club Industry in 2004

Case #2: 24 Hour Fitness

Questions: 1)

What are the important characteristics of 24 Hour Fitness’ industry?

2) Why has 24 Hour Fitness been successful?

3) At the end of the case, what problems does 24 Hour Fitness face? What would you recommend to the company to address these problems?

Competing Over Time


Topic: Competing Over Time – Part 1

Reading: Textbook, Chapter 4: Competing Over Time: Industry and Firm Evolution

Discussion: Competing Over Time

Tuesday, October 2, 2007

Topic:

Case:

Competing Over Time – Part 2

IBP and the U.S. Meat Industry

Questions: 1) How did the government actions from 1900 to 1920 change the structure of the meat packing industry?

2) Why was IBP successful in the 1960s and 1970s?

3)

Why has IBP’s performance deteriorated at the end of the case?

4) What should IBP do to improve its performance at the end of the case?

What are the key success factors that IBP needs to address in order to implement your suggestion?



Page 12 of 17

Review and Midterm Exam #1

Thursday, October 4, 2007

Topic:

Case:

Questions: 1) Why has Nucor performed so well in the past?

2) How attractive do the economics of thin-slab casting look?

Review

Nucor at a Crossroads

3) Is thin-slab casting likely to afford Nucor a sustainable competitive advantage in flat-rolled products?

4) Should Nucor pioneer the commercialization of thin-slab casting?


* * * Midterm Exam #1 * * *

Strategy Execution


Topic: Strategy Execution – Part 1

Reading: Textbook, Chapter 5: Strategy Execution

Discussion: Strategy Execution


REMINDER: Final group project proposals are due today.

Topic:

Case:

Strategy Execution – Part 2

Taco Bell Corp.

Questions: 1) Is Taco Bell in an attractive industry? Why or why not?

2)

What is Taco Bell’s strategy at the end of the case?

3) How did Taco Bell change its strategy (i.e., describe the process of change)? Hint: Use the strategy execution framework.

4)

Can Taco Bell’s major competitors copy their strategy?

5) What should John Martin do next?



Page 13 of 17


Topic:

Case:

Strategy Execution – Part 3

Acer America: Development of the Aspire

Questions: 1) Prior to the introduction of the Aspire, what is Acer’s strategy in the PC business? Be sure your answer addresses Acer’s industry analysis, the company’s strategy in the PC business, competitive advantage, industry position, manufacturing strategy, and organization design.

2) What is Acer’s strategy concerning the Aspire computer?

3)

Describe Acer’s strategy implementation for the Aspire. What did Acer do well? What did they do poorly?

4) How effective has management been in responding to these problems?

What is your evaluation of the changes they have made to the product, the marketing strategy, the organization structure, and the management roles and responsibilities?

5) At the end of the case, how should Stan Shih respond to broader issues raised by the Aspire problems? Should he continue to support the goal of building Acer as a global brand? What changes (if any) would you recommend he make in Acer’s global strategy, organization structure, and/or management philosophy to ensure that it can continue to operate successfully worldwide? How should Shih implement your recommendations?

Vertical Integration and Global Strategy


Topic #1: Vertical Integration

Reading #1: Textbook, Chapter 6: Vertical Integration and Outsourcing

Focus on the Introduction (pp. 155-157), and The Strategic Sourcing Framework

(pp. 165-171)

Topic #2: Global Strategy

Reading #2: Textbook, Chapter 8: Competing in Global Markets

Discussion: Vertical Integration and Global Strategy



Page 14 of 17


Topic: Vertical Integration

Case: Taiwan's United Microelectronics Corp. (UMC)

Questions: 1)

Do you agree with Tsao’s strategy of moving UMC to a “pure play” foundry? Why or why not? What factors drive the decision to verticalize or deverticalize?

2) What risks do you see as UMC moves forward? What, if anything, can be done to minimize these risks?

3) Looking ahead, what kinds of firms do you think will earn the greatest profits in the semiconductor industry? In other words, what kinds of firms will be able to achieve sustainable competitive advantage?

4)

What role does “location” (and all that the term implies) play in the semiconductor industry and UMC’s strategic restructuring?


Topic:

Case:

Global Strategy – Part 1

Philips versus Matsushita: A New Century, A New Round

Questions: 1) How did Philips become the leading consumer electronics company in the world in the post-war era? What distinctive competencies did they build?

What distinctive incompetencies?

2) How did Matsushita succeed in displacing Philips as number one? What were its distinctive competencies and incompetencies?

3) What do you think of the change each company has made to date – the objectives, the implementation, the impact? Why is change so hard for both of them?

4) What recommendations would you make to Gerald Kleisterlee? To Kunio

Nakamura?

Thursday, November 1, 2007

Topic:

Case:

Global Strategy – Part 2

Block 16: Conoco’s “Green” Oil Strategy (A)

Questions: * * * Role play assignments and additional readings to be distributed * * *

Multibusiness Firms

Tuesday, November 6, 2007

Topic: Multibusiness Firms – Part 1

Reading: Textbook, Chapter 10: Managing the Multibusiness Firm

Discussion: Multibusiness firms



Page 15 of 17


Topic:

Case:

Multibusiness Firms – Part 2

PepsiCo’s Restaurants

Questions: 1) Should PepsiCo acquire Carts of Colorado and/or California Pizza

Kitchen? Why or Why not?

2) What is PepsiCo’s strategy?

3)

4)

Why is PepsiCo interested in Carts of Colorado? Is this a good strategy?

Why is PepsiCo interested in California Pizza Kitchen? Is this a good strategy?

5) If PepsiCo were to acquire Carts of Colorado and/or California Pizza

Kitchen, how should they be integrated into PepsiCo? Should they be treated like the existing restaurants within PepsiCo?


Topic: Multibusiness Firms – Part 3

Case: Yum! Brands, Inc: A Corporate Do-Over

Questions: 1) What is Yum!’s strategy?

2)

Why did Yum acquire Long John Silver’s and A&W All American

Restaurants?

3) What strategic problems does Yum! face at the end of the case?

4) What should Yum! do to address its strategic problems?


No class


No class – Fall Break

Thursday, November 22

No class – Thanksgiving



Page 16 of 17

Review and Midterm Exam #2


Topic:

Case:

Review

Newell Rubbermaid: Strategy in Transition

Questions: 1) What is Newell Rubbermaid’s corporate strategy? How has it changed over time? You should address the changes in corporate strategy that occurred as a result of Newell’s acquisition of Rubbermaid.

2) What is Newell Rubbermaid’s global strategy? How effective has it been?

3) What strategy execution challenges does Newell Rubbermaid face at the end of the case? Why has Galli created the position of sales manager for strategic accounts (see page 11 of the case)?


* * * Midterm Exam #2 * * *

Corporate Governance

Tuesday, December 4, 2007

Topic:

Reading:

Corporate Governance

Textbook, Chapter 11: Corporate Governance

Focus on What Is Corporate Governance (pp. 279-284) and Board of Directors’

Effectiveness (pp. 289-292).

Case: Blockbuster, Inc.

Questions: 1)

How has Blockbuster’s strategy changed over time? Why did it change?

Which strategies have been successful?

2) What is the strategic problem facing Blockbuster at the end of the case?

What is Antioco’s approach to addressing this problem?

3) Why is Carl Icahn interested in Blockbuster? What strategy does he advocate for the company? Why is he starting a proxy contest?

4) If you were a Blockbuster shareholder, would you vote for Icahn or for

Antioco? Why?



Page 17 of 17

Strategic Planning

Thursday, December 6, 2007

Topic: Strategic Planning

Reading: Textbook, Chapter 12: Strategic Planning and Decision Making

Discussion: Strategic Planning

Final Group Project

* * * Final group papers are due on Friday, December 14, 2007, at 11:30 am * * *

Syllabus STRA 5370 F.. - Southern Methodist University

STRATEGIC MANAGEMENT IN A GLOBAL ECONOMY

Related documents

Products

Support

Syllabus STRA 5370 F.. - Southern Methodist University

STRATEGIC MANAGEMENT IN A GLOBAL ECONOMY

Related documents

Add this document to collection(s)

Add this document to saved

Suggest us how to improve StudyLib