UTA MBA
Spring 2011
Days: Mondays
Class times: 1900 -2150 hrs
Dr. Deepak K. Datta
Professor and
James and Eunice West Endowed Chair of Business
College of Business
University of Texas at Arlington
Arlington, TX 76019
Ph: 817-272-5493 e-mail: ddatta@uta.edu
The focus of this strategic management course is on the management of the entire organization.
The underlying premise is that successful companies base their organizational strategies on more than gut instinct. The strategic management process entails environmental analysis, assessment of competencies and weaknesses, analysis of competitors and the formulation and implementation of effective strategies that result in competitive advantage. This is a "big picture" course, a trait that makes it a truly different from others you have taken so far. It, therefore, requires you to apply the knowledge you have gained in previous courses in an integrated fashion and also introduces you to the critical business skills of planning and managing strategic activities.
Along with the text material, case studies and the business simulation CAPSTONE will be used to develop analytical and decision-making skills and also highlight the uncertainties in strategic decision making. The course also seeks to develop your capacity to identify issues, to reason carefully about strategic options and improve your ability to manage the organization process by which strategies get formed and executed. It attempts to encourage an integrated, multifunctional, "general management" perspective -- the grand sweep of "strategizing" should make the course fascinating and fun.

Required Text, Cases and Simulation:
• Strategic Management: Competitiveness and Globalization, Concepts, 9e , by Hitt, Ireland and Hoskisson
• HBS Cases (available from the bookstore)
• Capstone Simulation (individual online registration required)
Grades will be decided based on the following:
• First Exam: 20%; Final Exam: 35%
• Capstone Simulation: 25% (Capstone performance: 15%; Reports and Presentation: 10%)
• Case quizzes (2 or 3): 10%
• Class participation: 10%
Class participation will be judged, first and foremost, by both the frequency and the quality of contributions. The latter depends on whether comments made in class (1) are insightful and grounded in case facts; (2) are related to previous comments made and the issues (3) help move the discussion forward in depth or into other issues of importance and value (4) help synthesize issues discussed earlier or in previous classes
Frequency of participation, subject to meeting the quality standard above, is the other important determinant of grade for class participation.
A: 90-100; B: 80-89; C: 70-79, D:60-69; F: <60
CAPSTO E SIMULATIO
Objective
This course requires your participation in Capstone®, a strategic management simulation. It provides you with the opportunity to gain valuable hands-on experience in running a business as a member of a senior management team. The simulation will require you to evaluate situations and make decisions, evaluate outcomes, and compete with other management teams for resources, opportunities, and markets. Each team will have the opportunity to define strategies, and apply strategic concepts and techniques within a practical decision-making framework. In this way, you will have the opportunity to see how a firm's production, marketing, R&D, HR, and financial operations interact, and to observe the impact of key decisions on business performance within a competitive market.
Capstone Simulation Industry ID: C41878 -- you will need this to register for the simulation
Capstone Toll Free #: 1-877-477-8787
Registration: http://www.capsim.com/studentregapp/index.cfm
Simulation Deadlines
It is vital that you and your team meet the deadlines. If you fail to upload the decisions by the deadline your prior period decisions will be used.
OTHER ISSUES
• Please note that the use of cell phones is not permitted in class (use it during the break!)
• Please limit your notebook computer usage to the time allocated for the simulation

DAY 1 (January 24)
INTRODUCTION
Administrative affairs
Topics:
• Evolution of Strategic Management
• Levels of strategy
• Strategic Management Framework
• Strategic Intent
• Stakeholder Analysis
• Corporate Mission Statement
• SCP/IO Model of Strategic Management
Read:
Introduction to Strategic Management
DAY 2 (January 31)
INDUSTRY/ENVIRONMENTAL ANALYSIS
Topics:
• Industry definition
• Strategic Groups and Strategic Group Mapping
• Industry and Strategic Group Attractiveness
Read:
The External Environment
DAY 3 (February 7)
INDUSTRY/ENVIRONMENTAL ANALYSIS (continued)
Topics:
• Analyzing the General/Macro Environment
• Interrelationships between Macro/General and Competitive Environment
INTRODUCTION: CAPSTONE SIMULATION
Registration for Capstone simulation must be completed by February 5.
Capstone simulation
Individual Rehearsal rounds must be completed by February 14

Day 4 (February 14)
CASE DISCUSSION
PREPARE: Cola Wars Continue: Coke and Pepsi in 2006
Issues for analysis:
• Why was it that the concentrate producers have been so profitable?
• Compare the profitability of the concentrate industry to the bottling industry -- why is the profitability so different?
• What is happening in the soft drink industry? What are the challenges facing the industry?
• Why was the Pepsi Challenge so successful? How would you evaluate Coke's response?
• What are the competitive challenges facing Coke and Pepsi in 2006? What should Coke do? Pepsi?
Capstone Simulation
• Practice Round 1 (In class)
Day 5 (February 21)
INTERNAL ANALYSIS
Topics:
• Resources, Assessing rent earning capacity of resources and capabilities (VRIS framework)
• Core Competencies
• Value Chain, McKinsey Business System
• Optimizing the Value Chain, Outsourcing
Read:
The Internal Organization - Resources, Capabilities and Core Competencies
Capstone Simulation
• Practice Round 2 (In class)
Day 5 (February 21)
COMPETITIVE STRATEGY
Topics:
• Competitive Advantage; Types of Competitive Strategies
• Cost leadership, Value Chain in Cost leadership; Strategic Cost Management
Read:
Business Level Strategy
Capstone Simulation
• Practice Round 2 decisions in class
Day 6 (February 28)
COMPETITIVE STRATEGY (continued)
Topics:
• Analyzing differentiation, Value chain in differentiation analysis
• Best value strategy -- integrated low cost-differentiation strategy
Read:
Business Level Strategy
Capstone Simulation
• Business Plan and Year 1 Decisions

Day 7 (March 7)
EXAM 1 (Approx 60 minutes)
Capstone Simulation
• Report: Evaluation of firm performance in Year 1 and implications for future strategy
• Year 2 decisions (in class) – finalize and upload decisions by 9:30 PM
Day 8 (March 21)
CASE DISCUSSION
PREPARE: Apple in 2010
Issues for Analysis:
• What, historically, have been Apple’s competitive advantages?
• Analyze the personal computer industry. Are the dynamics favorable or problematic for Apple?
• How sustainable is Apple’s competitive position in the PCs?
• How sustainable is Apple’s competitive position in MP3 players?
• How would you assess its position in smartphones? What are the threats to sustainability of competitive advantage?
• What are the prospects for the iPad?
Capstone Simulation
• Report: Evaluation of firm performance in Year 2 and implications for future strategy
• Year 3 decisions (in class); finalize and upload decisions by 9:30 PM
Day 9 (March 28)
CORPORATE STRATEGY
Topics:
• Concentration; Vertical Integration: Motivations and Pitfalls
• Reasons for Diversification Levels of Diversification
• Managerial Motives underlying Diversification
• Related and Unrelated Diversification
Read:
Corporate-Level Strategy
Capstone Simulation
• Report: Evaluation of firm performance in Year 3 and implications for future strategy
• Year 4 decisions in class; upload decisions by 9:30 PM
Day 10 (April 4)
CORPORATE STRATEGY: M&As AND STRATEGIC ALLIANCES
Topics:
• Reasons for M&As; Value creation in mergers and acquisitions; Strategic and organizational fit
• M&A Process; Process problems in M&As
• Why Strategic Alliances?
• Pitfalls in Strategic Alliances
• Managing Strategic Alliances
Read:
Acquisition and Restructuring Strategies
Capstone Simulation
• Report: Evaluation of firm performance in Year 4 and implications for future strategy
• Year 5 decisions in class; upload decisions by 9:30 PM

Day 11 (April 11)
CASE DISCUSSION
PREPARE: Renault Nissan: The Challenge of Sustaining Change
Issues for Analysis:
• What is the rationale for the alliance? What strategic value does this being to either side?
• Comment on the nature of the “fit” between the two firms? What are the implementation challenges?
• What critical elements made it possible to execute the Nissan Revival plan successfully?
• What lessons can be drawn from this case on the formulation and implementation of cross-border deals?
Capstone Simulation
• Report: Evaluation of firm performance in Year 4 and implications for future strategy
• Year 5 decisions in class; upload by 9:30 PM
Day 12 (April 18)
INTERNATIONAL STRATEGY
Topics:
• International Export, Multinational and Global Strategies, Pressures for Global Efficiency,
Pressures for Local Responsiveness
• Transition to Transnationality and Transnational strategies
• Organization Structures -- International, Worldwide Area, Global Product Division, Matrix and
Network structures
Capstone Simulation
• Report: Evaluation of firm performance in Year 5 and implications for future strategy
• Year 6 decisions in class; upload by 9:30 PM

Day 13 (April 25)
CASE DISCUSSION: Mattel and the Toy Recalls (A & B)
Issues for Analysis:
• The toy industry is often characterized as a “difficult” industry from the standpoint of players.
What forces make it difficult for industry incumbents to generate significant returns?
• What motivates companies such as Mattel to offshore/outsource their manufacturing? What are the benefits and challenges?
• What contributed to the quality problems faced by Mattel? What can Mattel do to enhance product quality?
• How would you characterize Mattel’s recall strategy in 2007? What are the consequences of such a recall? How should it be framed?
• What went wrong? Did Mattel make a mistake by laying the entire blame on the Chinese manufacturers for the problem?
Capstone Simulation
• Report: Evaluation of firm performance in Year 6 and implications for future strategy
• Year 7 decisions in class; upload by 9:30 PM
Day 14 (May 2)
CAPSTONE BOARD PRESENTATIONS
Capstone Simulation
• Report: Evaluation of firm performance in Year 7 and Powerpoint handout for the presentation due on May 1 (Noon). They can be emailed to me
• “Board” Presentations