MGT 499 – STRATEGIC MANAGEMENT
FOR GLOBAL SCHOLARS
Spring 2011
Instructor:
Office:
Phone:
E-mail:
Hours:
Prof. Walter J. Ferrier
Rm. 455X Gatton Bldg.
257-9326
walter.ferrier@uky.edu *
Wednesdays, 4:00-5:00 p.m.
Thursdays, 1:00-2:00 p.m.
* Preferred channel of contact.
COURSE OVERVIEW
Strategic management (MGT 499) is an integrative capstone course – the only course that challenges
students to study and experience sets of multifunctional problems that confront top management of a
given organization. The course requires students to bring together all of their learned functional skills
(i.e., accounting, finance, marketing, etc.) and use them to study complex organizational problems and
challenges within the context of hands-on exercises/simulations, real-world projects, and open
discussion forums.
CLASS MEETINGS AND LOCATION
Each Wednesday, 6:00-8:30 p.m. – Gatton Rm. 125E
COURSE MATERIALS
QuickMBA and NetMBA (includes strategy concepts, frameworks)
CD containing other readings, books, articles, monographs, case studies, simulations, etc.
Will be distributed the first day of class
COUIRSE GRADING
ASSIGNMENT
Business Planning & Strategy Implementation Simulation
Global New Product Launch Simulation
Global Post-Acquisition Integration Simulation
Wargaming Simulation
In-Class Participation, Discussion, Presentations and Tasks
Peer Evaluation, Team participation/contribution
TOTAL
1
WEIGHT
20%
20%
10%
10%
20%
20%
100%
COURSE SCHEDULE, TOPICS, READINGS AND ASSIGNMENTS
Week 1
JAN 12
Framing questions: What are the key processes, tools and perspectives that organizational leaders use
to create, implement, and evaluate cross-functional decisions that will enable the organization to
achieve its long-term objectives? How do organizational leaders use strategy to navigate complex,
dynamic and uncertain contexts (i.e., globalization, technological change, geopolitics, calls for social
Course
Introduction and justice, economic crisis, etc.)?
Kick-off
Web:
Hierarchical Levels of Strategy
Web:
Strategic Management Process
PPoint: What is strategy?
Framing questions: Which analytical frameworks and tools enable organizational leaders to better
assess the current and likely future states of the organization’s context or situation it faces? …to better
assess its own strengths/weakness in current and future capabilities relative to rivals?
Week 2
JAN 19
Situation
Analysis
+
Resources &
Capabilities
Week 3
JAN 26
Competitive
Strategy
Web:
PEST Analysis
Web:
Porter’s Five Forces Analysis
Web:
SWOT Analysis
Web:
Value Chain Analysis
Web:
Competitive Advantage
Task:
Analysis of the Coffee Industry (presentations/discussion)
PPoint: Situation Analysis
PPoint: Resources and Capabilities
Framing questions: What are the fundamental strategic alternatives that organizations adopt in an
effort to both leverage its capabilities and seize new opportunities in the marketplace?
Web:
Web:
Article:
Web:
Video:
Task:
PPoint:
Porter’s Generic Strategies
Killer Strategies (Fortune @ CNNMoney.COM)
Strategic Plans Lose Favor (Wall Street Journal)
Steamrollered by Dell (Newsweek @ MSNBC.com)
Triumph of the Nerds
Razor Trials (presentations/discussion)
Competitive Strategy
2
Framing questions: How do organizations effectively maneuver in the marketplace vis-à-vis rivals?
What is competitive intelligence, and how can it enable organizations to anticipate and effectively
react to the strategies and tactics of rivals?
Week 4
FEB 2
Competitive
Interaction
Article:
Article:
Article:
Article:
Article:
Web:
Article:
PPoint:
King of the Hill (Academy of Management Executive)
P&G Chief Wages Offensive against Rivals (Wall Street Journal)
RIM Duels with Droid (Wall Street Journal)
Blackberry Gets Squeezed by Rivals (Wall Street Journal)
Apple, Google Rivalry Heats Up (Wall Street Journal)
Kindle seeks to expose iPad (CNN.com)
Dynamic Competitive Simulation (Booz, Allen & Hamilton)
Competitive Interaction
Tasks: Wargaming Simulation
Week 5
FEB 9
GRADE
Competitive
Interaction
Discussion: New Restaurant Business Plan and Tasting Competition Kick-Off
(Kick-off: FEB 9 + Dinner: MAR 9)
Framing questions: How do organizations simultaneously explore, create, and launch new initiatives
(i.e., new products, services, market positions, etc.) and exploit, defend, and sustain innovation-borne
advantages in the face of competition?
Class will be held at Awesome Inc., 348 East Main Street (across from Dunkin’ Donuts)
Week 6
FEB 16
Strategic
Innovation
Task:
Article:
Web:
Article:
Article:
PPoint:
Demonstration of AwesomeTouch terminal
Blue Ocean Strategy (Harvard Business Review)
The Economics of Aesthetics (strategy+business … scroll to pg. 3 in document)
E-cigarettes Spark New Smoking War (Wall Street Journal)
Snack Attack: Chip Eaters Make Noise about Crunchy Bag (Wall Street Journal)
Strategy and Innovation
3
Week 7
FEB 23
Week 8
MAR 2
No Class
Prepare for New Restaurant Simulation
No Class
Prepare for New Restaurant Simulation
Week 9
MAR 9
Business
Planning and
Strategic
Implementation
Simulation
Week 10
MAR 16
No Class –
SPRING BREAK
Simulation: New Restaurant Business Plan and Tasting Competition at Ferrier House
GRADE
SPRING BREAK
Framing questions: What are the relevant elements of the international political economy and scope
of national trade and investment policies that impact a firm’s global strategy and operations?
Week 11
MAR 23
International
Political
Economy
Week 12
MAR 30
Global Strategy
Web: Globalization: Dimensions and Rankings
Web: Comparative Advantage
Web:
Economic Integration
Web:
The Big Mac F/X Index
Article: Globalization with a Human Face
Article: The Outsourcing Bogeyman
PPoint: Global Context of International Strategy
Framing questions: Given the complexities and risk associated with globalization and the
international political economy, how do companies decide which mode of entry to use to enter foreign
markets? What are the different types of international strategies and their key dimensions or
characteristics?
Task:
Web:
Web:
Article:
Case:
PPoint:
Automaker’s global supply chain maps (presentation/discussion)
Foreign Market Entry Modes
Global Strategic Management
Global Strategy…In a World of Nations? (Sloan Mgt Review)
McDonald’s International Strategy (in-class handout)
Global Strategy
4
International
Joint Ventures
Framing questions: Given a company’s need to choose and implement both a foreign market entry
mode and a particular type of international strategy, under which conditions will an international joint
venture or alliance be the optimal? How does national culture influence both the preferred structure of
and negotiation process for international joint ventures?
Topics:
International joint ventures/alliances as strategic vehicles
The role of culture in international business
Case Study:
Week 13
APR 6
+
Global New
Product Launch
Simulation
KICK-OFF
Nora-Sakari: A Proposed Joint Venture in Malaysia (HBS)
Task: Put yourself in a consultant’s shoes and provide either Nora or Sakari
with your specific recommendations as to the motivations, structure, and modes
of cooperation for the proposed joint venture. Your recommendations should
explicitly consider:
What is Sakari’s overall international/regional strategy? What does it
want?
What is Nora’s overall international/regional strategy? What does it
want?
What role should the joint venture play in facilitating each company’s
intended strategy?
Which are really the most important strategy-level issues related to:
o Firm capabilities, entry mode choice, international strategy and
implementation, timing
Simulation overview: Drawing from relevant concepts, frameworks, analytical techniques, etc. in
supply chain management, global strategy, and negotiations, teams of MBA students will engage in a
two day-long exercise designed to simulate the formation of an international joint venture. Teams will
adopt the role/perspective of either a large multinational corporation, a small emerging market
company, or an emerging market government.
Manual:
Global New Product Launch Simulation (via e-mail)
5
Pre-Simulation Memo
GRADE
Brief, two-page description/statement about your team’s intentions for:
o International strategy and entry mode…or FDI/trade policy package (for
country teams)
o Specific role of joint venture in facilitating strategy, entry, policy goals
o Engaging in negotiation with specific other teams/parties
o Specific goals and processes for negotiations
Week 14
APR 13
Global New
Product Launch
Simulation
Post-Simulation Briefings and Report
GRADE
Oral (5 minutes) and written (3-4 pages) about:
o Joint venture deal(s) in which your team will participate or helped facilitate:
 Participants, structure, roles & responsibilities, contributions of
partners, etc.
 Contracts (if any – may be a single/common contract to be included
by JV partners and governments in team report; does not count
against text or diagram page counts)
o How JV will facilitate your team’s international strategy, entry mode,
government objectives, etc.
o Negotiation process
 Log/timeline of negotiations: Which teams, issues discussed,
agreements, differences, issues won/lost, reasons, conclusions, etc.
o What would you do differently, if given the chance?
o Special note to teams that were not party to any JV deals
 Describe why you were not part of a deal:
Strategic reasons, negotiation process reasons, etc.
6
Framing questions: Why/how do companies choose to compete in multiple industries/markets? Are
multi-business firms more competitive (better off) that single business firms? How is corporate-level
strategy distinct from business-level strategy? What are strategic characteristics of a merger or
acquisition? What are the motivations for M&A? What are the advantages and disadvantages to this
approach to corporate diversification and/or restructuring?
Week 15
APR 20
Corporate
Strategy…
Mergers &
Acquisitions
Topics:
Corporate diversification: Motivations, levels, types, managerial challenges
Analysis of diversified firms, Alternative pathways and configurations of diversification
Managing resources and strategic spillovers across business units
Motivations for M&A, Types and forms of M&A
Article: To Diversify or Not to Diversify (HBR)
@ http://www.strategy-business.com/resiliencereport/resilience/rr00030?pg=0
Web: Vertical Integration @ http://www.quickmba.com/strategy/vertical-integration/
Web: Horizontal Integration @ http://www.quickmba.com/strategy/horizontal-integration/
Web: BCG Matrix @ http://www.quickmba.com/strategy/matrix/bcg/
Web: GE-McKinsey Matrix @ http://www.quickmba.com/strategy/matrix/ge-mckinsey/
Web:
Core Competencies @ http://www.quickmba.com/strategy/core-competencies/
Web: Mergers & Acquisitions @ http://www.quickmba.com/finance/mergers-acquisitions/
Article: Adidas-Reebok Merger
@ http://www.usatoday.com/money/industries/manufacturing/2005-08-04-adidas-1b-cover-usat_x.htm
Framing questions: How do managers reconcile the strategic vs. human aspects of a merger or
acquisition? What are the key managerial challenges and tradeoffs?
Week 16
APR 27
Mergers &
Acquisitions
Topics:
Managing tradeoffs among strategic, cultural, and human factors associated with M&A
Post-M&A integration – effectiveness vs. organizational support
Article: Can This Merger Be Saved? (HBR)
Task:
Post-acquisition integration simulation
7
GRADE