HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
SCHOOL OF BUSINESS AND MANAGEMENT
SPRING 2014
ISOM 3100 – BUSINESS SIMULATION AND STRATEGIC DECISIONS
Instructor: Prof. Kai-Lung Hui
Email: klhui@ust.hk
Office: LSK4068
Time: Every Fri, 10:30-13:20
Venue: LSKG005
Teaching Assistant: Chris Tse (imchris@ust.hk)
Course Website: http://lmes2.ust.hk
Objective and Learning Pedagogy
This course introduces students to strategic management and decision making using a
combination of lectures, case studies, and a hands-on business simulation exercise. The
lectures will focus on disseminating and elaborating the foundational concepts in modern
competitive strategies and decision making; the case studies will illustrate how these concepts
are applied and strategies are executed in real business enterprises; and finally, the business
simulation exercise will provide students an effective platform to make complex strategic
business decisions in a realistic competitive environment. Students are expected to engage in
case studies and a team project to analyze and discuss a broad spectrum of business issues,
decisions, and strategic management tradeoffs. The objective is to develop a broad
perspective in managerial decisions and economics and social factors that drive modern
global organizations. Active participation in classroom case discussion and the simulated
business competition project is a vital element and will be an important component of
students’ overall performance in the course.
Capstone Business Simulation
The Capstone Business Simulation, used by more than 100 business schools worldwide
including Wharton and Harvard, and used as part of the HKUST-Kellogg EMBA program,
will be integrated into the course lectures and discussions, and will give students the
opportunity to work as teams in making important tradeoffs and strategic decisions regarding
product positioning, marketing, operations, human resources, logistics, and finance in a
simulated business environment. The relative performance of each team on multiple criteria
for eight rounds of simulation (corresponding to eight years of company operations) will
represent 55% of the overall grade for the course.
Assessments
Individual participation (25%) – contributions to in-class case discussions, individual work
on the Capsim online quiz and simulation rehearsals, and attendance.
Individual assignments (20%) – you need to read and analyze the two business cases (GE
and Robert Mondavi) assigned for the course, and submit short written answers to selected
case questions. In general, your answers should not exceed 4 pages (double-spaced, 12 point
font, one inch margins) for each case.
In addition, each student needs to submit a brief reflection of the Capsim experience in the
last class. Your reflection should not exceed 2 pages (double-spaced, 12 point font, one inch
margins).
Group business simulation (55%) – students need to manage a company on a team basis in a
simulated business environment by making strategic decisions involving product positioning,
marketing, operations, human resources, logistics, and finance.
Team performance will be assessed in multiple rounds and along dimensions including
profitability, market share, utilization of financial resources, etc. In addition, each team will
need to submit two short written reports (1 page each) on team strategy.
Academic Integrity
We place a strong emphasis on academic integrity, and any forms of cheating, including
plagiarism, will be handled seriously. In general, students who are found cheating or
plagiarizing other peoples’ work will immediately fail the course and be subject to further
disciplinary actions. For more information, please refer to the following two Web sites:
http://tl.ust.hk/integrity/student-1.html
http://tl.ust.hk/integrity/regulations-1.html
Readings
Reference article (downloadable from the HKUST digital library):
 Porter, M.E. “The Five Competitive Forces that Shape Strategy,” Harvard Business
Review, January 2008.
Cases:
 GE’s Growth Strategy: The Immelt Initiative (Harvard Business Case 9-306-087).
 Robert Mondavi and the Wine Industry (Harvard Business Case 9-302-102).
Other Reading:
 Capsim Team Member Guide.
Course Schedule
Acad.
Date
Week
Lecture Topic
Pre-Assigned Reading / Tasks (complete
BEFORE class)
 Porter (2008)
1
Feb 7



2
Feb 14


Review of general business concepts
Tactical decisions

Read Capsim team member guide
Feb 21



Competitive positioning
Six basic strategies
Team breakout for Practice Round 1



Team roster submitted
Complete simulation rehearsal
Complete Capsim online quiz
Feb 28



Discussion of Practice Round 1 results
Performance assessment
Team breakout for Practice Round 2


Practice Round 1 submitted
Review of Practice Round 1 results


Discussion of Practice Round 2 results
Case discussion: GE



Practice Round 2 submitted
Review of Practice Round 2 results
Assignment: GE
Mar 14



Team breakout for Practice Round 3
Discussion of Practice Round 3 results
Analytical skills for strategic decisions
Team breakout for Practice Round 4
Discussion of Practice Round 3 results
Defining competitive advantage
Team for Competition Round 1

Assignment: Team strategy
Mar 21




8
Mar 28



Discussion of Competition Round 1 results
Team breakout for Competition Round 2
Discussion of Competition Round 2 results


Competition Round 1 submitted
Review of Competition Round 1 results
9
Apr 4


Case discussion: Robert Mondavi
Team breakout for Competition Round 3

Assignment: Robert Mondavi
Apr 11



Discussion of Competition Round 3 results
Team breakout for Competition Round 4
Discussion of Competition Round 4 results


Competition Round 3 submitted
Review of Competition Round 3 results
Apr 18
No class – Good Friday
Apr 25



Team breakout for Competition Round 5
Discussion of Competition Round 5 results
Team breakout for Competition Round 6
May 2



Discussion of Competition Round 6 results
Team breakout for Competition Round 7
Discussion of Competition Round 7 results


Competition Round 6 submitted
Review of Competition Round 6 results
Team breakout for Competition Round 8
Discussion of Competition Round 8 results
Lessons from Capsim

Assignment: Capsim reflection
May 9



3
4
5
6
7
10
11
12
13
Mar 7
Course introduction and policies
Introduction to Capsim
Foundation of competitive strategy