UNIVERSIDAD DE ESPECIALIDADES ESPÍRITU SANTO FACULTAD DE ESTUDIOS INTERNACIONALES SYLLABUS ENGLISH VERSION FOR DAC 11 VER 19 05 08 SUBJECT STRATEGIC MANAGEMENT FACULTY PIERINA CEVALLOS CONTACT HOURS 48 YEAR 2010 DAYS Mon- Thursday ROOM F-209 CODE UGER 475 CREDITS 3 NON-CONTACT HOURS 96 PERIOD SUMMER SCHEDULE 21h00-22h20 SYLLABUS DATE 14-06-10 1. COURSE DESCRIPTION The purpose of this course is to develop strategic thinking and analysis, bringing together the concepts from the functional areas of the company, in the analysis and decision-making involved in complex business situations. The concepts, theories, and ideas are given practical application in case studies, in regular class discussions, and in the project, which builds throughout the course. Emphasis is placed on thinking, on communicating, on problem identification and solution. 2. JUSTIFICATION The general purpose of this course is to provide students with the necessary tools to be able to create and implement an effective and successful business policy and strategy based on the company’s mission and goals. Students will be able to become decision-makers, applying their knowledge through well-planned strategies in real life situations. 3. OBJECTIVES a. GENERAL Guide students in the process of becoming decision-makers, developing a strategic way of thinking, in order to implement an effective business strategy. b. SPECIFIC Formulate and implement business strategies. Analyze the attractiveness of an industry. Identify a company’s strengths and weaknesses and identify and opportunities and threats. (SWOT analysis) Develop a company’s sustainable competitive advantage. Create a competitive strategy for foreign markets. 4. COMPETENCIES Throughout this course students will be able to analyze the environment in which the company works, identify potential opportunities and formulate strategic decisions that will lead to the achievement of the company’s mission and goals. 5. COURSE CONTENT OUTLINE DATES & SESSIONS SPECIFIC COMPETENCIES Session 2 Understands the five tasks of strategic management. Jul-07 Session 4 Defines a firm's vision, mission statement, objectives and crafting a suitable strategy. Jul-14 Session 8 Chapter 1: Concepts and Techniques of Strategic Management. Pages: 2-26 Establishing Objectives. Crafting a Strategy Chapter 2: Establishing Company Direction: Developing a Strategic Vision, Setting Objectives, and Crafting a Strategy Pages: 30-69 Case Study 1 Chapter 3: Industry and Competitive Analysis. Pages: 72-99 Reading Control /Questions and discussion Chapter 3: Pages: 100-113 Chapter 4: Evaluating Company Resources and Competitive Capabilities. Pages 114-127 Quiz Chapter 4: Evaluating Company Resources and Competitive Capabilities. Pages 128-147 Case Study 2 Chapter 5: Strategy and Competitive Advantage. Pages: 148-184 Reading Control /Questions and discussion Methods of Industry and Competitive Analysis Analyzes the five competitive forces of an industry. Industry's dominant Economic Features, Competition and Competitive Forces Causes for Industry's Competitive Structure and Business Environment changes Companies in the weakest and the strongest position Jul-13 Session 7 Why Strategic Management is an Ongoing Process Factors that Shape a Company's Strategy Session 5 Session 6 The five tasks of Strategic Management Developing a Strategic Vision Jul-08 Jul-12 ASSESSMENT Who performs the five tasks of Strategic Management? Jul-06 Session 3 NON-CONTACT HOURS Strategic Management Overview Session 1 Jul-05 CONTENTS Strategic Moves Rivals are Likely to Make Next Evaluates industry attractiveness. Preparing for competitive success. Key Factors for Competitive Success Industry Attractiveness and Prospects for Above-Average Profitability Doing an Industry and Competitive Analysis Jul-15 How well is the Present Strategy Working? Session 9 Jul-19 Session 10 Identifies the company's strengths and weaknesses. Identifying market opportunities and threats. Jul-20 Session 12 Jul-22 Are the Company's Prices and Costs Competitive? How Strong is the Company's Competitive Position? What Strategic Issues Does the Company Face? The Five Generic Competitive Advantages Session 11 Jul-21 What are the Company's Resource Strengths and Weaknesses and its External Opportunities and Threats? Establishes the firm's competitive advantage. Cooperative Strategies and Competitive Advantages Merger and Acquisition Strategies Vertical Integration Strategies Session 13 Jul-26 Session 14 Applies offensive and defensive strategies to secure the company's competitive advantage. Jul-27 Session 15 Session 16 Jul-29 Session 17 Ago-02 Session 18 Ago-03 Session 19 Ago-04 Session 20 Ago-05 Session 21 Unbundling and Outsourcing Strategies Using Offensive Strategies to Secure Competitive Advantage Using Defensive Strategies to Protect Competitive Advantage First-Mover Advantages and Disadvantages Mid-Term Exam Jul-28 Understands cross-country differences. Defining an strategy to enter and compete in foreign markets. Understands the impact of the internet in the competitive environment and its strategic implications. Chapter 5: Strategy and Competitive Advantage. Pages: 185-197 Cross-cultural Differences in Cultural, Demographic, and Market Conditions Multicountry Competition or Global Competition? Strategy Options for Entering and Competing in Foreign Markets Chapter 6: Strategies for Competing in Globalizing Markets. Pages: 198-223 Case Study 3 Chapter 7: Business Models and Strategies in the Internet Era. Pages: 224-255 Project's First Draft Presentation Chapter 8: Tailoring Strategy to Fit Specific Industry and Company Situations. Pages: 258-270 Reading Control /Questions and discussion Chapter 9: Pages: 271-289 Chapter 9: Strategy and Competitive Advantage in Diversified Companies. Pages:290-302 Quiz Chapter 9: Strategy and Competitive Advantage in Diversified Companies. Pages:303-327 Case Study 4 Strategic Alliances and Joint Ventures with Foreign Partners The Internet How Internet Technology Impacts Company and Industry Value Chains How the Internet Reshapes the Competitive Environment Strategic Mistakes Made by Early Internet Entrepreneurs E-Commerce Business Models and Strategies for the Future Strategies for Competing in Emerging Industries of the Future Adapts the company's strategy to different industry situations. Ago-09 Strategies for Competing in Turbulent, High-Velocity Markets Strategies for Competing in Mature Industries Strategies for Competing in Stagnant or Declining Industries Strategies for Competing in Fragmented Industries Strategies for Sustaining Rapid Company Growth Strategies for Industry Leaders Strategies for Runner-Up Firms Session 22 Ago-10 Session 23 Understands the keys for successful business strategies. Ago-12 Session 25 Ago-16 When to Diversify Building Shareholder Value Ago-11 Session 24 Strategies for Weak and Crisis-Ridden Businesses 10 Commandments for Crafting Successful Business Strategies Analyzes the implications of diversification strategies. Implementing a diversification strategy. Choosing the Diversification Path The Case for Related Diversification Strategies The Case for Unrelated Diversification Strategies Strategies for Entering New Businesses Strategy Options for Companies that are Already Diversified Identifying Present Corporate Strategy Session 26 Ago-17 Session 27 Evaluates the attractiveness of each industry for diversified companies. Evaluating Industry Attractiveness Evaluating the Competitive Strength of the Company's Business Units Strategic Fit Analysis Evaluates crossbusiness competitive advantage potential. Ranking the Business Units on the Basis of Past Performance and Future Prospects Deciding on Resource Allocation Priorities and a General Strategic Direction for Each Business Unit Project Presentation Crafting a Corporate Strategy Ago-23 Session 30 Chapter 10: Evaluating the Strategies of Diversified Companies. Pages: 342-353 Business Unit Requirements Session 28 Session 29 Reading Control /Questions and discussion Resource Fit Analysis Ago-18 Ago-19 Chapter 10: Evaluating the Strategies of Diversified Companies. Pages: 328-340 Ago-24 Final Exam 6. METHODOLOGY Classes will be conducted seminar style and by teamwork. Students will be assigned to read the material beforehand in order to discuss different views during class. At the end of the course students will present their projects to the class. Class rules: In compliance with UESS regulations students can have a maximum of 6 absences. Late attendance will also be considered in your record, 3 times= 1 absence. The use of cell-phones and other electronic devices is prohibited during class and will be confiscated if used in the classroom. Cheating (copying and plagiarism) is absolutely unacceptable and will result in failing the course. Food is not allowed in the classroom. Homework and projects must be typed: A4 paper, Arial 10, and must be presented on the due date. Late homework may be accepted one day after the due date but graded over 70. 7. ASSESSMENT At the end of the course students will be required to present a project, which will consist of choosing a company or business, and develop and present a strategic plan. The plan will include the firm’s internal analysis as well as identify potential opportunities and threats. It will also include recommendations to create and sustain long-term competitive advantage. The project will be presented in a written format and it will also be presented to the class at the end of the second term. 7.1 Assessment Criteria • Class discussion • Case studies • Class exercises • Simulator performance evaluation 7.2 Performance Markers • Elaborates a firm’s corporate vision, mission and sets its objectives. • Analyses the firm’s macro-environment and identifies opportunities and threats. • Elaborates an industry’s competitive forces analysis and identifies opportunities and threats. • • • • Identifies sources of competitive advantage. Evaluates cross-cultural differences and identifies strategies for competing in global markets. Identifies strategies to compete under different industry conditions. Identifies and evaluates strategies for diversified companies. 7.3 Weighting • Case studies • Quizzes • Practical classes • Research projects • Simulator presentation 100 100 100 100 100 8. BIBLIOGRAPHY 8.1 REQUIRED Strategic Management, Concepts and Cases. Thompson and Strickland. Thirteenth Edition. 8.2 COMPLEMENTARY Fundamentals of Management: Essential Concepts and Applications. Stephen P. Robbins, David A. Decenzo. Fourth Edition. The Competitive Advantage of Nations. Michael E. Porter. 8.3 HANDOUTS: Study cases, newspapers and magazines articles. 8.4 WEBLIOGRAPHY: EBSCO DATABASE www.quickmba.com/strategy/ www.businessplans.org www.netmba.com/strategy/ www.thinkingmanagers.com/business-management/strategic-management.php 9. FACULTY INFORMATION NAME: Pierina Cevallos Serrano . ACADEMIC CREDENTIALS--UNDERGRAD: B.S. Trilingual International Business Administration Universidad Católica de Santiago de Guayaquil GRADUATE: Master in Strategic Business Administration – Universidad de Belgrano, Buenos Aires, Argentina E – MAIL: piericevse@hotmail.com 10. Prepared by: Pierina Cevallos Date: June, 2010 Reviewed by: Dean Monica Reynoso Date: June, 2010