HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY
SCHOOL OF BUSINESS AND MANAGEMENT
SPRING 2015
ISOM 3100 – BUSINESS SIMULATION AND STRATEGIC DECISIONS
Instructor: Prof. Kai-Lung Hui
Email: klhui@ust.hk
Office: LSK4068
Date and Time: Friday, 13:30-16:20
Venue: LSK1034
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 with an effective platform to make complex
strategic business decisions in a realistic business environment. 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.
Intended Learning Outcomes
 Characterize the key factors underlying competitive strategic considerations.
 Explain the relations between different tactical decisions.
 Explain how each functional/tactical decision affects the success of an organization.
 Compare and contrast different competitive positions.
 Compare and contrast different analytical tools and their applications.
 Compare and contrast the options available to a business in view of the global trends.
 Formulate, analyze, and execute a strategy for a virtual company.
 Explain how the performance of a company should be assessed and tied to the design and
execution of competitive strategies.
Assessment
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 all 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 a short written report (1 page) 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 (HBS Case 306087-PDF-ENG).
 Robert Mondavi and the Wine Industry (HBS Case 302102-PDF-ENG).
Other Reading:
 Capsim Team Member Guide.
Course Schedule
Acad.
Date
Week
Lecture Topic
1
Feb 6



2
Feb 13


Review of general business concepts
Tactical decisions
3
Feb 20

No Class – Lunar New Year




Course introduction and policies
Introduction to Capsim
Foundation of competitive strategy
Pre-Assigned Reading / Tasks
(complete BEFORE class)
 Porter (2008)

Read Capsim Team Member Guide
Competitive positioning
Six basic strategies
Team breakout for Practice Round 1
Discussion of Practice Round 1 results




Team roster submitted
Complete simulation rehearsal
Complete Capsim online quiz
Read Capsim Industry Conditions
Report
Performance assessment
Team breakout for Practice Round 2
Discussion of Practice Round 2 results
Case discussion: GE

Assignment: GE
Mar 6




Mar 13



Team breakout for Practice Round 3
Discussion of Practice Round 3 results
Defining competitive advantage
Team breakout for Competition Round 1
Discussion of Competition Round 1 results
Team breakout for Competition Round 2

Mar 20



In-class assignment: One-page
Team strategy report
8
Mar 27



Discussion of Competition Round 2 results
Team breakout for Competition Round 3
Discussion of Competition Round 3 results


Competition Round 2 submitted
Review of Competition Round 2
Results
9
Apr 3

No Class – Good Friday
Apr 10



Analytical skills for strategic decisions
Team breakout for Competition Round 4
Discussion of Competition Round 4 results
Team breakout for Competition Round 5
Discussion of Competition Round 5 results
Case discussion: Robert Mondavi

Assignment: Robert Mondavi
Apr 17



11
Apr 24

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
Team breakout for Competition Round 6
Discussion of Competition Round 6 results
Team breakout for Competition Round 7
12
May 1

No Class – Labor Day
May 8




Discussion of Competition Round 7 results
Team breakout for Competition Round 8
Discussion of Competition Round 8 results
Reflection: Lessons from Capsim


Competition Round 7 submitted
Review of Competition Round 7
Results
Assignment: Capsim reflection
4
5
6
7
10
10
13
Feb 27
