University of Alberta School of Business
Department of Strategic Management and Organization
SMO 502 lec X50
STRATEGY and ORGANIZATION
Winter Term 2011
Wednesday @ 6:30-9:30 p.m., BUS 4-09
INSTRUCTOR:
Professor P. Devereaux (Dev) Jennings
E-mail: dev.jennings@ualberta.ca
Office Hours: Wed. 5:00-6:00 p.m.
Phone: (780) 492-3998
Office: 4-30A BUS
DESCRIPTION1
SMO 502 is an elective course in strategy and organization theory for MBAs. The
overarching objective is to help you improve your strategic decision making. As
part of that objective, the course has three related goals: first, to train you to use the
comprehensive framework for strategic analysis in order to refine your strategic
planning; second. to familiarize you with standard implementation approaches to
enhance your strategy execution, and third, to sensitize you to critical strategy
issues, especially those involving moral pitfalls.
The comprehensive framework refers to the creation of a vision and mission,
external and internal analysis of the company, and the selection of strategies for
improved performance. This framework is found in the basis for organizing content
in most introductory strategy and organization theory texts and also commonly
used in consulting.
The standard methods for implementation include generating momentum through
empowerment, rearranging key structural elements in firms, and adjusting
organizational learning routines. All three methods fall more generally under what
is called the “process” approach to strategy in organizations, because they
emphasize the emergent, often-adjusted nature of strategy as it is applied.
The critical issues to which I hope I can sensitize you further include power and
politics in organization, the impact of your leadership and decision making style,
and cultural clash issues. The investigation of these issues draws directly on
materials from SMO 500, the required MBA course in organizational behavior.
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I would like to thank Professor Roy Suddaby for providing a prior version of this syllabus for modification.
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MATERIALS
While we draw on standard textbook materials, our needs outstrip what is provided
in any one volume. Therefore, we will use a reading packet and reserve materials
that include text and book chapters, along with cases and research readings. I will
try to post some of these on the Web, under ULearn. But most will be in a required
reading packet, to be purchased at the UofA Bookstore. For further details see:
https://ulearn.ualberta.ca/webapps/login/
ASSESSMENT
Class Participation (individual)
Project A – Strategic Diagnosis
Project B – Strategic Solution
Project Presentation – B with A
30%
30%
30%
10%
Total
100%
CLASS PARTICIPATION
Your participation in class is essential, both to your learning and that of your peers.
Effective participation is not simply a function of being noisy, but is accomplished
by focused comments, analyses that illustrate how a particular concept of strategy
is used in the case or how a problem in the case might be solved. Quality of
comments, rather than quantity, is the key.
For your own benefit you should prepare a brief (i.e., no more than two pages)
written summary of each case before class. The summary should briefly
summarize the facts of the case, identify the primary and subsidiary issues and
provide suggested solutions to the issues. If the case has specific questions to be
addressed at the end of the case, these should be answered as well.
Your individual class participation comprises 30% of your total evaluation.
PROJECT A – STRATEGIC DIAGNOSIS
This assignment requires you to conduct a strategic diagnosis of an organization
and its existing strategy. Details are set out in the appendix attached to this
syllabus. The assignment is due on the 2nd of March, 2012. This assignment
comprises 30% of your total evaluation.
PROJECT B – STRATEGIC SOLUTION
This assignment extends Project A by requiring you to recommend modifications to
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the current strategy of the organization analyzed in Project A. Details are set out in
the appendix attached to this syllabus. The assignment is due on the 13th of April,
2011. The final case analysis comprises 30% of your final evaluation.
PROJECT A & B – PRESENTATION
At the end of the semester each person or team will present their case study to the
rest of the group as a means of sharing what you have learned. The presentation
will be fifteen minutes with another five to seven minutes for questions. Details on
the assessment of the presentation are presented in the appendix. The presentation
counts for 10% of your final evaluation.
CRITERIA FOR EVALUATION OF WRITTEN WORK
All written work will be evaluated on the basis of the following considerations:
THEORY: How well does the written material reflect your understanding and
application of the conceptual constructs presented in class? Are you using
terminology appropriately?
DATA: How well do you use data to justify your analyses, to make appropriate
inferences and to support your arguments?
WRITING: How effectively are you communicating your analyses? Is the writing
clear? Are the arguments logical? Is the data presented clearly? Is the
communication style appropriate for the intended audience?
CREATIVITY: Is this analysis a routine or generic application of concepts to data
or does the analysis customize existing knowledge of strategic management to
create a unique solution for this specific firm? Does the analysis integrate
knowledge from a variety of disciplines?
COURSE POLICIES
Academic Integrity: “The University of Alberta is committed to the highest
standards of academic integrity and honesty. Students are expected to be familiar
with these standards regarding academic honesty and to uphold the policies of the
University in this respect. Students are particularly urged to familiarize themselves
with the provisions of the Code of Student Behaviour (online at
www.ualberta.ca/secretariat/appeals.htm) and to avoid any behaviour, which could
potentially result in suspicions of cheating, plagiarism, misrepresentation of facts
and/or participation in an offence. Academic dishonesty is a serious offence and
can result in suspension or expulsion from the University.” (GFC 29 SEP 2003)
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Note: Please read the University’s policy on plagiarism at
http://www.ualberta.ca/SECRETARIAT/chtsheet.pdf
Special Needs: I would like to hear from anyone who has a disability that may
require some modification of seating, testing or other class requirements so that
appropriate arrangements can be made. Please see me before or after class.
Special arrangements must be made before any tests are administered.
Late Assignment Policy: Any assignment that is late will have ten (10%) per cent
of the grade deducted for each day that assignment is late up to a maximum of
seven days. No papers will be accepted more than seven days after the deadline.
COURSE OUTLINE
………………………….…...... Wednesday, January 11t ……………………………
INTRODUCTIONS: WHAT IS STRATEGY
Case: No Case
Readings:

“What is Strategy?” by Michael E. Porter. Harvard Business Review (HBR),
74 (6): 61-78. 1996.

“Building Your Companies Vision” by Jim C. Collins & I Porras, Harvard
Business Review Sept./October 1996.
Introductory Lecture: “What is Strategy?”
……………………..………
Wednesday, January 18th ………………………………
COMPETITIVE POSITION-EXTERNAL STRATEGY
Case: Wal Mart Stores in 2003 by Pankaj Ghemewat, Stephen P. Bradley & Ken Mark.
Supplemental Readings:

“Creating Competitive Advantage” by P. Ghemawat and J. Rivkin. HBS. 9-798062. 2006.

“The Five Competitive Forces that Shape Strategy” by M.E. Porter, Harvard
Business Review, January 2008.
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Lecture: “External Determinants of Competitive Advantage”
……………………..……… Wednesday, January 25th ……………………………
COMPETITIVE RESOURCES-INTERNAL STRATEGY
Case: Intuit by Frank Cespedes.
Supplemental Reading:

“The Core Competence of the Corporation” by C.K. Pralahad and G.
Hamel, Harvard Business Review, May-June 1990.

“Innovation to the Core: A Blueprint for Transforming the way your
company innovates” by Peter Skarzynski and Rowan Gibson, Harvard
Business Review, February, 2008.
Lecture: “Internal Strategy and Core Competencies”
.……………………………….. Wednesday, February 1st………………………………
BUSINESS LEVEL STRATEGY
Case: Lincoln Electric Co. by Jordan Seigel
Supplemental Readings:

“How Manager’s Everyday Decisions can Create or Destroy your Company’s
Strategy”, J.L. Bower & C.G. Gilbert, Harvard Business Review, Feb. 2007:
72-81.

“Strategy and Society: The link between corporate advantage and Corporate
Social Responsibility by M.E. Porter and Mark R. Kramer, Harvard Business
Review, December 2006.
Lecture: “Generic Strategies”
………………………………….. Wednesday, February 8th……………………………..
CORPORATE LEVEL STRATEGIES – COMPARE AND CONTRAST
Case: GE’s Two Decades of Transformation: Jack Welch’s Leadership\ by Christopher A.
Bartlett.
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Supplemental Readings:

“Creating Corporate Advantage”, David J. Collis and Cynthia A.
Montgomery, Harvard Business Review, May, 1998.
Lecture: “Managing Organizational Structure in a Diversified Firm”
…………………..……………….Wednesday, February 15th……………………………
COMPETITIVE AND COOPERATIVE DYNAMICS
Case: Cola Wars Continue: Coke vs. Pepsi in the 21st Century by David B. Yoffie & Yusi
Wang.
Supplemental Reading:

“Mapping your Competitive Position”, by Richard D’Aveni, Harvard
Business Review, November 2007.

The Right Game: The Use of Game Theory to Shape Strategy. Harvard
Business Review, July-August, 1995 Reprint 95402.
Lecture: “Competitive and Cooperative Strategies”
.……………………………….. Wednesday, February 22nd ……………......…………
“READING WEEK” BREAK – NO CLASS
.………………………………... Wednesday, February 29th ….………...………………
MERGERS & ACQUISITIONS (M&A)
Case: Virgin Group: Filling the Value Gap by Frances X. Frei, Hannah Rodriguez Farrar
and Cory Hajim
Supplemental Readings:

Gould, M and Campbell, A. 1998. Desperately Seeking Synergy. Harvard
Business Review, 76 (5): 131-143. ISBN-ISSN-Harvard-Ivey No.: 0017-8012
Reprint 98504.

“To Diversify or Not to Diversify” by Constantinos C. Markides, Harvard
Business Review, November, 2007.
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Lecture: “Mergers and Acquisitions”
.……………………………….. Wednesday, March 7th ……………...…………………
CORPORATE GOVERNANCE/ORG. STRUCTURE
Case: Board of Directors at the Coca Cola Co. by Jay Lorsch, Rakesh Khurana and Sonya
Sanchez
Supplemental Reading:

“How Well Run Boards Make Decisions”, M. Unseem, Harvard Business
Review, Nov. 2006: 130-139.

“The Case for Contingent Governance” by Paul Strebel, Harvard Business
Review, December, 2004.
Lecture: “Corporate Governance Post Sarbanes-Oxley”
.……………………………….. Wednesday, March 14th ………………………………
IMPLEMENTATION OF STRATEGY - I
Case: Haier (A) & (B) by Linda S. Paine.
Supplemental Reading:

“Leading Change”, John Kotter, Harvard Business Review, July-August 19xx,
p. xx.

“Raising Haier”, by Zhang Rumin. Harvard Business Review, February, 2007.
Lecture: “Implementation through Leadership and Power”
.……………………………….. Wednesday, March 21st ………………………………
IMPLEMENTATION OF STRATEGY - II
Case: The Vancouver 2010 Olympics, by Anita Elberse, Catherine Anthony, and Joshua
A. Callahan.
Supplemental Reading:
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
“Lessons from Stakeholder Theory for U.S. Business Leaders “, by Ronald W.
Clement. Business Horizons. 2005, 48: 255-264.

“Engaging Fringe Stakeholders for Competitive Imagination” by Stuart L. Hart
and Sanjay Sharma. Academy of Management Executive. 2004, 18 (1): 7-18..
Lecture: “Implementation in the Public Sector with Stakeholders”
.……………………………….. Wednesday, March 28th ……….……………………
FINAL PROJECT PRESENTATIONS
.……………………………….. Wednesday, April 4th …………………….……………
FINAL PROJECT PRESENTATIONS
.……………………………….. Wednesday, April 11th ……………….………………
Lecture: SO, WHAT HAVE WE LEARNED?
Concluding Comments, Questions and Wrap Up
APPENDIX:
PROJECT A – STRATEGIC DIAGNOSIS
Your task is for you or your small group to conduct a strategic audit of your selected organization’s
current strategy. Based on your understanding of the following elements of your organization:





Vision Statement
Mission Statement
Philosophy/Culture
Organizational Chart
Corporate History
… you should prepare an assessment of your organization’s positioning in its external
environment, its internal resources, capabilities and core competencies and its overall business and
corporate strategy.
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The report should be no more than ten pages of text (single spaced, 12 point font, 1.5 inch margins,
8.5 X 12 inch pages) but with an unlimited number of exhibits, charts or diagrams.
Below is a possible sequence of headings for your report.
1. Title Page and Table of Contents
2. Brief history of your company, branch, and your department
 What is your role in the overall company?
 Organization structure (indicate yourself and others).
3. Vision (“Where will our department/company be in 5-10 years?”)
 ABC company will:
rank (#1, top 3, top quartile, or be competitive)
in the XXX industry
within YY years.

If there is no formal Vision Statement, then report what you believe
senior management would say.
4. Mission
 Which goods/services will serve
 which customers
 in which geographical area
 over the next 3-5 years
 If there is no formal Mission Statement, then report what you believe
senior management would say.
5. Philosophy/Culture
 How are things done in your company? What are the slogans? What happens if
someone does not comply with the normal culture?
 If there is no formal Philosophy/Culture, then report what you believe senior
management would say.
6.
Balanced Scorecard
 “How do we allocate our emphasis among employees, shareholders, customers, and
society?”
- See attached example from Abitibi-Price.
 See Balanced Scorecard at
www.valuebasedmanagement.net/methods_balancedscorecard.html
7. Develop table/grid for customers
 Which geographical areas does your company serve?
 Which customer segments buy which products/services from your
company/department?
 Why do customers purchase your company’s products rather than products
from another company?
8. Develop table/grid for competition and your company
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


Develop a table/grid for your company and the competition, including
strengths, weaknesses, size, core competencies, and other key factors.
For larger companies, this section will focus more on your department.
For smaller companies, the focus probably will be on the company.
9. Overall corporate strategy (some possibilities)
 High quality, reasonable price
 Reasonable quality, low price
 Low-cost producer
 Vertically integrated from raw materials through distribution
PROJECT B- STRATEGIC SOLUTION, RECOMMENDATIONS
AND IMPLEMENTATION
Based on the prior report, what recommended changes would for you or your small group
make to improve your selected organization’s competitive position?
This report should be no more than ten pages of text (single spaced, 12 point font, 1.5 inch
margins, 8.5 X 12 inch pages) but with an unlimited number of exhibits, charts or diagrams.
THE FINAL PROJECT PRESENATION
You or your small group should provide an overview of your case analysis and potential
resolutions sometime in the four three weeks of class. The presentation will be 15 minutes
long, with 5-7 minutes of questions. The team should provide a handout on the core of the
presentation and also be prepared for questions.
Component
CONTENT (45%)
Good Theoretical/
Conceptual Material for
Day’s Case & Topic
Comments
Details/Description Were
Rich and Informative
FORM (45%)
Entertaining & Professional
Mechanics Were Good
(Timing, Structure,)
Questions (10%)
Addressed Content and
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with Respectful Tone
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