MGMT 4950 – Strategic Management – Fall 2014 – BU 101 Instructor: Office: Phone: E-mail: Dr. Gerald E. Calvasina BU 309 435-586-1976 calvasina@suu.edu Office Hours: 10:00 AM – 11:30 AM T & R 9:00 AM – 11:30 AM M & W Other by appointment Catalogue Description: A capstone course for seniors covering the concepts of strategic management and developing perspective, judgment, and skills in problem solving in interrelated areas of accounting, management, marketing, economics and finance. Prerequisite: Pre-business core, business core and declared business major (preferably in last semester of the program). SUU Essential Learning Outcomes Knowledge of Human Cultures and the Physical and Natural World Intellectual and Practical Skills Personal & Social Responsibility Integrative Learning Department/Program Learning Outcomes Management The management program fully supports the undergraduate learning objectives of the School. In pursuit of the mission stated above, the additional objectives of the Management program are as follows: 1. All management students will be encouraged to participate in relevant student organizations supporting their interests. These include PBL, DECA, the Society for Human Resource Management, and other groups. 2. All graduating students will have a working knowledge of the concepts of planning, organizing, staffing, directing and controlling commercial operations. 3. All graduating students will be familiar with the major trends affecting small and large business, international commerce and e-business. 4. All graduating students will be able to synthesize the fundamental elements of finance, accounting, business law, marketing, economics and management in a manner which enables them to make effective decisions at the corporate level. COURSE OBJECTIVES: 1. To develop a holistic perspective of an organization which integrates the concepts, skills, and principles learned in previous functional area courses (e.g. Marketing, Finance, Accounting) 2. To develop an appreciation and understanding of the role of top management in dealing with complex and dynamic strategic questions. 3. To gain an understanding of the concepts of strategic management and business policy. 4. To be able to analyze business cases and to apply the knowledge gained from one case to a seemingly unrelated case. The objective of the course is not so much to accurately access an individual case as it is to begin to “think strategically” about business opportunities and problems. 5. To develop communication, presentation, and participation skills which will be invaluable in a business career. Requirements: 1. Class Participation: Each student is expected to participate in class and team discussions. During every session, class members will be called on randomly to answer questions pertaining to that day's assignment. Students are expected to bring detailed notes on their analysis of the cases on case discussion days. The notes may be collected at the beginning of class and graded as a quiz. Case sessions are analytic exercises, analogous to laboratory sessions in other disciplines. The objective is that you gain experience in analysis by responding to the ideas of others and by allowing your own ideas to be evaluated. You will learn by doing, not by passively listening. To do this you must be there, you must be prepared, and you must be involved. Your participation will be evaluated based on attendance, quantity and quality of participation. It will be rated on a scale from 0 to 5 (0 = absent, 1 = unprepared, 2 = no comments, 3 = called on and prepared, comment but don't add much to class learning, 4 = good comments, 5 = leadership role) in classes throughout the semester, with a special focus on case classes. Your final participation grade will be formed from the composite of these scores. An average score of 2 is at best a "C". Remember: Those who are well-prepared and following the discussion in their heads, but, who make no comments themselves, are generally indistinguishable from those who are unprepared and inattentive and can, therefore, expect no better participation grade. To ensure that the class is prepared and to give some credit to the shy ones among you, pop-quizzes may also be given on the case material. These will be administered at the beginning of the period in which we cover the case. More than three unexcused absences from classes in which cases are being discussed will result in a penalty of one-third decrease in your participation grade (e.g., B to B-) for each absence. This is in addition to the 0 you will receive for participation each time you are absent. If circumstances require you to miss class you may, with the consent of the instructor, make up the class by turning in comprehensive written answers to the study questions for that case. These will be due no later than the following class period. 2. Examinations. Two exams will be given. Students are responsible for material covered in lectures, readings, and discussions. The exams will be part objective, short-answer, and part essay and will test both your knowledge of the conceptual material and your ability to apply that knowledge. 3. Simulation: The Business Strategy Game. Each student will be assigned to a team that will form a company and will make strategic decisions to lead that company in a business simulation in competition with other teams in the class. EVERY CLASS MEMBER MUST register on-line for the simulation at http://www.bsg-online.com . Registration Instructions will be discussed in class. Your first assignment with respect to the simulation is to READ THE PLAYERS GUIDE. A copy of the Guide may be found by clicking on the files link. Once you have finished reading the Player’s Guide, you may complete On- Line Quiz #1. This is a timed – open book – quiz: point value – 5% of your simulation grade. Your group will submit decisions each week for 10 weeks. Your grade for this exercise will be scored in terms of your company’s ending performance on key business measures (EPS 20%, ROE 20%, Stock Price 20%, Credit Rating 20%, and Image Rating 20%). Further details will be provided in a player’s manual and a practice session to be held in class. Again, individual grades may be adjusted based on group feedback; make sure you are doing your share. BSG Grading (based on final score—including quiz score and group evaluations): Score Grade Score Grade Score Grade Score Grade Score Grade 110-109 100 88-87 89 68-67 79 48-47 69 28-26 59 108-107 99 86-85 88 66-65 78 46-45 68 25-23 58 106-105 98 84-83 87 64-63 77 44-43 67 22-20 57 104-103 97 82-81 86 62-61 76 42-41 66 19-17 56 102-101 96 80-79 85 60-59 75 40-39 65 16-14 55 100-99 95 78-77 84 58-57 74 38-37 64 13-11 54 98-97 94 76-75 83 56-55 73 36-35 63 10-08 53 96-95 93 74-73 82 54-53 72 34-33 62 07-05 52 94-93 92 72-71 81 52-51 71 32-31 61 04-01 51 92-91 91 70-69 80 50-49 70 30-29 60 bankrupt 50 90-89 90 4. Team Project: Teams must select either Option 1 or Option 2. OPTION # 1. Strategic Research Report and Presentation – One of the limitations of the case method of instruction is that the case writers already do much of the data collection that is an important part of strategic analysis. To help students have a more realistic experience about how strategic analyses are really done, student teams are required to isolate a strategic or competitive problem facing a real organization, gather information about this problem and develop a written case of the strategic situation. Your assignment then is to perform a strategic audit, and essentially develop a case like the ones you will analyze during the semester. This team project includes a written report and a presentation of central elements of your analysis. As a team, you will: select an industry and one publicly-traded company within that industry, collect information and data on the chosen industry/firm (through methods such as use of the internet, business journals, and/or the library data bases), and prepare a written report up to 20 pages of double-spaced text. Any tables, graphs, financial statements, etc., are in addition to the text and should be included within an appendix. The analysis and report must include at least two pages of financial information relevant to the case and a one-page Executive Summary. The key idea here is that you explore the: 1) History of the company, its management team, mission/vision of the firm, and the company’s business model (Brief – no more than 2 pages of report). 2) Current industry environment, including profitability assessment (Five forces analysis). 3) Competitor analysis. 4) Resources and capabilities of the chosen firm. 5) Business and corporate level strategies employed by the chosen firm. 6) International strategies used by the chosen firm. 7) Cooperative strategies used. 8) Identify important management issues that appear critically relevant within the industry and to the firm’s managers (and – current/future managers), and 9) Include your analysis and recommendations for the firm’s best course of strategic action going forward (Be sure to tie recommendations to management issues identified in # 8). OPTION # 2. Consulting Project - Teams of four-five students will be formed the first week of class. Each team will be required to do a strategic assessment of a local business. The local business will be selected from a client list from the Small Business Development Center (SBDC). This project will be coordinated with the SBDC Office. This project is intended to give each of you some “real world” practice in evaluating the strengths and weaknesses of a business, assessing its opportunities and threats, and recommending a course of action to improve the long-term profitability of the company. These projects will also be presented both to the client and to the class in a 20-25 minute presentation. Project Guidelines are attached to help your group produce a high-quality project/report. 5. ETS FIELD EXAM: The ETS Field exam (or Princeton exam) is administered to all graduating business majors. It will test your knowledge of all areas of the business major (e.g., accounting, economics, finance, management, marketing...). This exam is used nationally to rank the quality of different business schools. Traditionally, SUU students have done very well on this exam, averaging in the top 10% for the last five years. The exam will be administered in the testing center during the semester. However, while taking this exam is a requirement of this course (if you do not take it you do not pass), how well you do on the exam does not affect your course grade. Your performance on this exam will be noted on your official SUU Transcript. Grading: Project Participation Exams Simulation Assurance of Learning Exercises Written Case Analysis Total 100 points 50 points 200 points 100 points 60 points 40 points 550 points Final Grades will be based on the following scale: A 93-100%; A- 90-92%; B+ 87-89%; B 83-86%; B- 80-82%; C+ 77-79%; C 73-76%; C- 70-72%; D+ 67-69%; D 63-66%; D60-62%; F below 60%. PROFESSIONAL CONDUCT. The major you have chosen within the School of Business is designed to prepare you to enter into the professional world of business. I consider it my responsibility to take the leadership in creating a classroom environment where optimal learning can take place. Here are some expectations I have in order for us to create an effective, professional learning environment. The foundation of these expectations is simple respect and politeness. • • • • • • • • • Just as you can expect me to be here, prepared and on time, for every scheduled class session, I expect the same of you.. You are responsible for acquiring relevant notes from other students if you are late to or miss class. Ask questions! If something is unclear to you, it probably means that several others have the same question. However, please ask me the questions in class, or to slow down, not your neighbor. In other words, no talking when I am talking. Likewise, no talking when a fellow student “has the floor.” Professionals are courteous and respectful of each another. Contributions to class discussion are strongly encouraged. Do not come to class late or leave early. Neither your fellow students nor I appreciate this disruption. Do not read the newspaper or work on projects for other courses during class time. Bringing food and drinks to class is permissible, as long as it’s not disruptive. Please don’t bring anything wrapped in noisy “crinkly” wrappers. No ringing cell phones or texting on cell phones during class, please turn your cell phones off and put them away. Laptops may be used for taking notes and following Powerpoint presentations, this is fine and may enhance your learning experience. However, laptops are sometimes used in inappropriate ways; they may not be used during class to search • websites, email, or do work that is not related to what is going on in class. Such use is distracting and rude to the professor and your classmates and will result in your laptop being disallowed for any purpose. Get help from the professor in his office if you don’t understand the material. POLICY STATEMENTS: "HEOA Compliance statement: The sharing of copyrighted material through peer-to-peer (P2P) file sharing, except as provided under U.S. copyright law, is prohibited by law. Detailed information can be found at http://www.suu.edu/it/p2p-student-notice.html." Policy 6.36 lists this link online for Emergency Management (as per revision approved June 11) http://www.suu.edu/ad/facilities/emergency-procedures.html. ACADEMIC INTEGRITY: Scholastic dishonest y will not be tolerated and will be prosecuted to the fullest extent. You are expected to have read and understood Policy 6.33 Academic Integrity and the current issue of the student handbook (published by Student Services) regarding student responsibilities and rights. ADA STATEMENT: Students with medical, psychological, learning or other disabilities desiring academic adjustments, accommodations or auxiliary aids will need to contact the Southern Utah University Coordinator of Services for Students with Disabilities (SSD), in Room 206F of the Sharwan Smith Center or phone (435) 865-8022. SSD determines eligibility for and authorizes the provision of services. EMERGENCY MANAGEMENT STATEMENT: In case of emergency, the University's Emergency Notification System (ENS) will be activated. Students are encouraged to maintain updated contact information using the link on the homepage of the mySUU portal. In addition, students are encouraged to familiarize themselves with the Emergency Response Protocols posted in each classroom. Detailed information about the University's emergency management plan can be found at http://www.suu.edu/ad/facilities/emergency-procedures.htmlHEOA Compliance statement: The sharing of copyrighted material through peer-to-peer (P2P) file sharing, except as provided under U.S. copyright law, is prohibited by law. Detailed information can be found at http://www.suu.edu/it/p2p-studentnotice.html. Student Assessment Notification System (SANS) Option 1 - I care about your success and therefore will participate in the Student Assessment Notification System (SANS) an early alert program designed to provide peer mentor support and resources. If I feel you are struggling in my course, you will receive a notice of concern from me through SANS. I expect you to utilize these resources designed for your benefit. Option 2 - If your attendance or academic performance shows deficiencies you will receive a notification from me through the Student Assessment Notification System (SANS). Please respond to the support offered as appropriate. Option 3 - Southern Utah University has created an early alert program (SANS) designed to provide tutoring and other resources to students in need. Should you receive a SANS notification, please take advantage of the support offered. The SANS program may be used to provide additional resources as well as recognition for quality academic performance. COURSE OUTLINE: (This schedule may be adjusted as needed) August 26 Course Orientation and SBDC Project Introduction – Prof. Craig Isom Assigned Reading – Simulation Players Manual September 27 Bio Assignment due by 5:00 PM – Canvas File Upload 28 Library Resources Presentation – Scott Lanning 2 Team Formation & Project Selection 4 Simulation On-line Quiz should be completed by 8:15 AM Simulation Orientation – Meet in BU 207 – Practice Year 11 decision Assigned Reading: Chapter 1 – Strategy, Business Models and Competitive Advantage 9 Lecture/Discussion of Chapter 1 Assignment: Assurance of Learning Exercises (ALE) & Simulation Exercise (SE). All groups will do ALE # 3 page 11, & SE # 4 page 12 – Submit both assignments via Canvas. Simulation Practice Year 12 due by 8:15 AM 11 Assurance of Learning Exercise Reports/Presentations Assigned Reading: Chapter 2 – Charting a Company’s Direction: Vision and Mission, Objectives, and Strategy Simulation Data Re-Set to Year 11 16 Lecture/Discussion of Chapter 2 Assignment: Assurance of Learning Exercise # 2 page 34 – Individual Assignment. Submit via Canvas. 18 Continue Discussion of Chapter 2 and Assurance of Learning Exercise Reports/Presentations Assigned Reading: Chapter 3 – Evaluating a Company’s External Environment Simulation Decision for year 11 due by 8:15 AM 23 Lecture/Discussion of Chapter 3 Assignment # 1: Assurance of Learning Exercise # 1 page 66 – All Groups – Submit via Canvas Assignment # 2: Case #4 pp. 287-298 – Coach Inc. in 2012: Strategy in the “Accessible “Luxury Goods Market – All Groups – Submit via Canvas 25 Continue Lecture/Discussion of Chapter 3 Simulation Decision for year 12 due by 8:15 AM 30 Assurance of Learning Exercise # 1 Reports/Presentations October November 2 Discussion of Case #4 Assigned Reading: Chapter 4 – Evaluating a Company’s Resource Capabilities and Competitiveness Simulation Decision for year 13 due by 8:15 AM 7 Lecture/Discussion of Chapter 4 Assignment: Assurance of Learning Exercise #1 pp. 88 - 89 and #3 page 90 – All Groups – Submit via Canvas 9 Assurance of Learning Exercise Reports/Presentations #1 Simulation decision for year 14 due by 8:15 AM 14 Assurance of Learning Exercise Reports/Presentations #3 16 Module One Exam: Chapters 1, 2, 3, & 4 of the Text (In SUU Testing Center) Assigned Reading: Chapter 6 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations Simulation decision for year 15 due by 8:15 AM 21 Fall Break – No Classes 23 Lecture/Discussion of Chapter 6 Assignment: Case #5, pp. 299 - 314 – Chipotle Mexican Grill in 2013: Can It Hit a Second Home Run? – Individual Assignment – Submit via Canvas Simulation decision for year 16 due by 8:15 AM 28 Discussion of Case # 5 Assigned Reading: Chapter 9 Ethics, Corporate Social Responsibility, Environmental Sustainability and Strategy 30 Lecture/Discussion of Chapter 9 Assignment: Case #12, pp. 411- 426 – Frog’s Leap Winery in 2011 – the Sustainability Agenda – Individual Assignment – Submit via Canvas Simulation decision for year 17 due by 8:15 AM 4 Discussion of Case #12 Assigned Reading: Chapter 10 Superior Strategy Execution – Another Path to Competitive Advantage 6 Lecture/Discussion of Chapter 10 Assignment: Case #7, pp. 330 – 359 – Nucor Corporation in 2012: Using Economic Downturns as an Opportunity to Grow Stronger – All Groups – Submit via Canvas Simulation decision for year 18 due by 8:15 AM December 11 Discussion of Case #7 Assignment: Assurance of Learning Exercises – All groups will be assigned one of the exercises on page 236 – Submit via Canvas. 13 Assurance of Learning Reports/Presentations Simulation decision for year 19 due by 8:15 AM 18 Module Two Exam – Chapters 6, 9, & 10 20 Exam Review and Project Work Day Simulation decision for year 20 due by 8:15 AM 25 Simulation Debriefing 27 Thanksgiving Break – No Classes 2 Project Presentations 4 Project Presentations 10 Project Presentations (If necessary) Project Option # 2 Guidelines One of the best ways to develop a better understanding of strategic management is to apply the tools of strategy to a complex problem. The semester project will be a strategic assessment of a Cedar City area small business. Students will work in teams to analyze an existing business to determine whether that business is managing an optimal strategy. Businesses have been recruited for you by Craig Isom director of the Small Business Development Center. Mr. Isom will act as the liaison between the client and the team should any problems occur. There are several reasons for incorporating this project into your curriculum: 1. Working with a real business helps students translate theory to practice. 2. The promise of actual business gain or threat of business loss makes the academic experience more salient; students take real businesses more seriously than case studies. 3. Small to medium size businesses provide a manageable assessment environment for students. 4. Entrepreneurs have been and continue to be the primary source of innovation and job creation in this country. It is hoped that in the process of interacting with entrepreneurs, you might enhance the skills needed to “intrapreneur” in your corporate context. 5. In addition to having an extraordinary learning experience, you will be assisting businesses that have asked for your help. This is a service learning project that reinforces our commitment to developing good citizens. All project reports must address the following: Identification and evaluation of current strategy. What is the organization’s current strategy in relation to the scope of its activities and to the basis on which it has attempted to establish competitive advantage over its rivals, and the organizational structure, management systems and leadership style through which the strategy has been implemented? How successful has the strategy been in relation to the performance of the company? Analysis of the company vision, mission, and goals. What is the company’s business purpose, what is it attempting to accomplish, where does it hope to go (what is its future strategic course), and how do these answers translate into specific goals and objectives? Appraisal of the external environment. Emphasis should be on what the principal developments in the industry environment are in terms of factors which will influence the overall industry attractiveness and determinants of relative success (key success factors). When appropriate, discussion of macro-economic variables should also be included in the analysis. Do an analysis of the firm’s industry utilizing Porter’s five industry forces and forces driving change in the industry. Appraisal of internal resources and capabilities. On the basis of an appraisal of the organization's resources and capabilities, what do you perceive to be the principal strengths and weaknesses of the organization? To what extent is the current strategy effectively exploiting the company's strengths in resources and capabilities and defending against its weaknesses? *An effective external/internal analysis should lead you to focus on the issues most critical to your client sustaining successful performance. Alternatives. Often there are several alternative solutions to the issues raised. Note these alternatives and the pros and cons of each. Recommend actions for the client to take. Recommendations. What are your recommendations? How do you see the organization's strategy being amended in order to achieve a better match to the external environment and to the internal potential for competitive advantage? What internal organizational changes does your analysis suggest? How would you prioritize your recommendations in terms of short, medium and long-term? A strategic recommendation must be three dimensional. It must define the basis of competition (lowcost, differentiation or focus); it must have a direction (market penetration, market or product development, or diversification); and it must have a method (internal, joint-venture, etc.). A strategic recommendation must also be valuable to the company. It must either generate new revenue or reduce costs. _____________________________________________________________________ Evaluation The project will be evaluated on how well you demonstrate the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. An understanding of the overall strategic goals and objectives of the organization. An understanding of the organization's competitors and the key external factors affecting the organization and its industry and the trends in those factors. An understanding of the organization's internal strengths and weaknesses (including a thorough financial analysis) Identification of strategic issues: Could your team sort through the data and find the critical issues that needed to be resolved? The quality and thoroughness of the evaluation of the organization's present strategy and its future potential. Use of available information: was the student resourceful in identifying and using sources of data: on-line, CD-ROM, library resources, interviews, etc.? Is there full information? Usefulness of recommendations: Will management be able to take meaningful action based on your short and long term recommendations? Appropriateness and thoroughness of the implementation plan (sufficient details provided, time horizon, and consideration of available resources and constraints). Written paper: Organization, grammar, spelling, writing quality, presentation quality (i.e. graphs, charts, overall appearance and creativity). Professionalism of presentation: Visual aids, organization, speaking, etc. Project Milestones Milestone 1: Your team members: 1. Your team will be required to provide opinions on everything from accounting and finance to marketing and operations. 2. Not everyone on the team needs to make customer contact. It is highly recommended that the team have one regular contact person and that at least two team members have regular contact with the business. The team members not in contact with the business can perform library research, financial analysis, editing, etc. 3. It is the responsibility of the team to divide work and control work so as to provide a quality report. Each member must keep a record of hours worked on the project. Peer evaluations will be administered both at mid-term and at the end of the semester. The final peer evaluation will be used to determine a student’s final project and presentation grade. Milestone 2: Plan for your project Set out initial assignments, develop a preliminary outline of your assessment and case history report, and prepare for initial contact with your company. Prior to visiting your firm, you should find out as much as you can about the assessment process and about your company. Be prepared to set the expectation level for your client. Milestone 3: First visit: At this visit, you should get as much information as you can about the general operations of the firm. Bring written questions with you, or an outline of what you’d like to learn. Respect your client’s time and attention. Milestone 4: Preliminary assessment Develop a preliminary assessment for your client to discuss with him or her. Look for points of agreement and disagreement. Includes both internal and external analysis. Do not wait too long in the semester to gather information as data is extremely difficult to find and therefore requires a considerable amount of time and tenacity. Milestone 5: Drafts of sections Students may submit drafts prior to the December 2, 2014 deadline but drafts must be in good form with correct grammar, spelling, etc. Acceptable drafts will be reviewed and strengths and weaknesses or areas for improvement will be noted. I would prefer entire sections rather than a couple of pages at a time. Milestone 6: Class report Class reports are due in electronic form on December 2, 2014. They must be in a format that will be presented to a client, that is, professionally written and error free. You will be making two presentations of your project – one to the client and one to the class. Final Projects Report Evaluation: The projects will be evaluated on how well you demonstrate the following: 1. An understanding of the overall strategic goals and objectives of the organization. Excellent Very Good Average Improvement Needed 5 4 3 2 1 2. An understanding of the organization's competitors and the key external factors affecting the organization and its industry and the trends in those factors. Excellent Very Good Average Improvement Needed 5 4 3 2 1 3. An understanding of the organization's internal strengths and weaknesses (including a thorough financial analysis) Excellent Very Good Average Improvement Needed 5 4 3 2 1 4. Identification of strategic issues: Could your team sort through the data and find the critical issues that needed to be resolved? Excellent Very Good Average Improvement Needed 5 4 3 2 1 5. The quality and thoroughness of the evaluation of the organization's present strategy and its future potential. Excellent Very Good Average Improvement Needed 5 4 3 2 1 6. Use of available information: was the student resourceful in identifying and using sources of data: on-line, CD-ROM, library resources, interviews, etc.? Is there full information? Excellent Very Good Average Improvement Needed 5 4 3 2 1 7. Usefulness of recommendations: Will management be able to take meaningful action based on your short and long term recommendations? Excellent Very Good Average Improvement Needed 5 4 3 2 1 8. Appropriateness and thoroughness of the implementation plan (sufficient details provided, time horizon, and consideration of available resources and constraints). Excellent Very Good Average Improvement Needed 5 4 3 2 1 9. 10. Written paper: Organization, grammar, spelling, writing quality, presentation quality (i.e. graphs, charts, overall appearance and creativity). Excellent Very Good Average Improvement Needed 5 4 3 2 1 Professionalism of presentation: Visual aids, organization, speaking, etc. Excellent Very Good Average Improvement Needed 5 4 3 2 1