The Lee Kong Chian School of Business
Academic Year 2013/14
Term 1
MGMT234 STRATEGIC MANAGEMENT IN CHINA
Instructor Name
Title
Tel
Email
Office
: Heli Wang
: Associate Professor of Strategic Management
: 68280728
: hlwang@smu.edu.sg
: LKCSB 5016
COURSE DESCRIPTION
The primary topic of this course is strategic management in the Chinese context, including that of both local Chinese
companies and foreign companies operating in China, but with a somewhat greater focus on the former. The course
has two primary features. First, it broadly encompasses three levels of strategies of companies competing in the
Chinese context: business strategies, corporate strategies, and cross-border competitive strategies. Second, in
analyzing the strategies of companies competing in the Chinese context, the course will take a comparative
perspective. The key frameworks in strategic management are mostly developed in the West. Since there are
fundamental differences in macro national environment, competitive industry, and firm strategic issues between China
and the West, whether the existing frameworks are applicable to the Chinese context is thus a key concern. We shall
discuss throughout the course the similarities and differences between strategic management issues in the West and
in China.
LEARNING OBJECTIVES
By the end of this course, students will be able to:
• Understand the conditions under which different kinds of strategy have the potential to create economic
value and competitive advantage for Chinese companies;
• Understand the roles and responsibilities in helping the Chinese companies to achieve competitive advantage
if they plan to work in these companies;
• Obtain the knowledge that is necessary to compete or cooperate with Chinese companies more successfully
if they plan to work in foreign companies that either already have or will have operations in China
PRE-REQUISITE/ CO-REQUISITE/ MUTUALLY EXCLUSIVE COURSE(S)
Please refer to the Course Catalogue on OASIS for the most updated list of pre-requisites / co-requisites for this
particular course. Do note that if this course has a co-requisite, it means that the course has to be taken together
with another course. Dropping one course during BOSS bidding would result in both courses being dropped at the
same time.
ASSESSMENT METHODS
The course grade will be calculated in the following way:
Participation: 20%
Class attendance
In-class discussion participation
Group Work: 40%
Project presentation
Case written report
Peer evaluation
Individual Work: 40%
Exam
5%
15%
20%
15%
5%
40%
1
ACADEMIC INTEGRITY
All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of
academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work of
other students) are serious offences.
All work presented in class must be the student’s own work. Any student caught violating this policy may result in
the student receiving zero marks for the component assessment or a fail grade for the course. This policy applies to
all works (whether oral or written) submitted for purposes of assessment.
Where in doubt, students are encouraged to consult the instructors of the course. Details on the SMU Code of
Academic Integrity may be accessed at http://www.smuscd.org/resources.html.
INSTRUCTIONAL METHODS AND EXPECTATIONS
Class Attendance and In-Class Participation
Class participation grades will be assigned based on the quality of individual contributions in class. Both attendance
and active class participation are important. Since our class discussion forms the core of the course, I expect you to
attend all the class sessions. Please also display your name card and try to sit in the same seat every session.
In case I feel there is not sufficient class discussion, I may use cold calls here and there to encourage participation.
You should be prepared to be called upon any time during class discussion. You may choose to “pass” if you don’t
know the answer to my question. But if you use “passes” too often, your participation grades will be adjusted
downwards.
Individual Case Preparation for Class Discussion
Considering that case preparation is a personal matter, and that there is no one formula, the following are some
generally recommended guidelines for most cases:
1.
2.
3.
4.
5.
Read the case quickly, noting the major issues and a general sense of the layout. Ask yourself how the case might
fit into the assigned text materials or previous sessions.
Reread the case carefully, annotating, highlighting and distinguishing important information, omissions, and
questions raised by the reading.
Decide what the most important issues really are. Answer any assigned questions accompanying the case. If no
questions are assigned, use the course objective (from the syllabus) and the assigned reading materials to
determine the relevance of the case.
Discuss the case with others, before class, if possible, to test out your ideas and further your understanding of
the issues.
Prepare notes to guide your class participation, including: answering assigned questions, summary of the main
issue(s), further questions raised by the reading, assumptions made by the case writer, similarities and differences
to other cases covered, possible approaches or solutions to the case problem.
Group-Based Work:
The class will be formed into groups of 4 or 5 students. The small groups will form the core of learning in the case
preparations and project presentations. Each group will have two main responsibilities over the semester: 1) deliver a
oral presentation on a project; and 2) write a team report on a main case. The groups will be formed early in the
course.
1) Project Presentation
Each group will present a project based on a Chinese company or a foreign company doing business in China. The
company should not be covered as a case in the class. The objective of the project is to apply the tools of strategic
analysis and our understanding of the Chinese business context to evaluating a strategic situation involving a company,
business unit, or industry, and to offer specific recommendations. Each group will take the role of a team of strategic
management consultants hired by the company to appraise the situation and the current strategy and establish a
recommendation or solution.
2
In particular, I would like you to look at a current situation where a Chinese company or a company operating in
China faces a decision, or a problem or an opportunity where the appropriate strategy is not obvious and the
outcome is uncertain. The strategic issue could be either at the business level or at the corporate level. For example,
you may focus on issues related to diversification, vertical integration, or competitive concerns in a particular industry.
In general, in-depth analysis of one specific strategic issue should be sufficient. But if you prefer, you may cover more
than one (but no more than two) issues. It is important that the issue is closely related to China’s business context
and you determine whether enough information can be gathered on the company for your analysis.
The content of the project will vary according to the characteristics of the company and its industry.
But it is recommended that your project presentation should at least cover the following:
• Identification and evaluation of a current strategic issue that is closely related to China business context.
• Your team’s own strategic analysis
• Recommendations
It is required that the presentation is professional and maintains the audience’s interest; but meanwhile there are
many degrees of freedom for creativity and innovation. Following the presentations, there will be a Q&A section.
Please refer to Appendix 1 for detailed requirements.
2) Case written report
Each group is also required to submit a written report on one of the assigned cases. The written reports should be
double-spaced and professionally formatted, and must be submitted in the beginning of the due-dated class. The
group-case allocation of the presentations and written reports will be arranged first day in class. Please also refer to
Appendix 1 for detailed requirements. In addition, Appendix 2 lists the assignment questions for each of the cases.
3) Peer evaluation
Your individual performance for the group assignments may also be based on your team members’ evaluation of your
contributions. For this purpose, the peer-evaluation form will be distributed later in the class.
Examinations
There will be a cumulative final exam. The exam is closed-book and closed-notes exam and will focus on the materials
covered in class. No make-up exams will be allowed without prior permission. I expect all of you to follow the
school’s examination policy. Among other things, you need to bring your own calculator(s) to the exams; you are not
allowed to share calculator(s) with one another; you also need to silence your cell phone and keep it away from the
desk during the entire duration of the exams.
CONSULTATIONS AND TEACHING ASSISTANTS
Consultation is by appointment only.
TAs:
CLASS TIMINGS
This course will be taught in one 3-hour session. If you need to see me for consultation, please contact my TA or me
to make appointment. I am also available by emails.
RECOMMENDED TEXT AND READINGS
You are required to purchase a package of cases and reading materials. Some other supplementary readings may be
distributed in class whenever necessary.
Optional Readings (on reserve in the library):
1. Inside Chinese Businesses: A guide for managers worldwide. Chan, M. J. HBS press, 2001.
2. Strategic Management and Competitive Advantage: Concepts (Second Edition). Barney, Jay B. & William S. Hesterly.
Upper Saddle River, NJ: Person Education Inc. 2008.
3
WEEKLY LESSON PLANS
(Tentative, changes may be made spontaneously during the term)
Class Meetings
1
2
3
4
5
6
7
Description of class
•
•
Introduction & Brief background on China
Strategic management in China: An overview
•
•
•
Industry analysis
Industry analysis in the Chinese context
Resource-based analysis
•
•
•
Resource-based analysis in the Chinese context
The case of Wal-Mart in China
Case 1: EachNet
•
•
Chinese companies’ corporate-level strategies
Diversification and Vertical Integration strategies
•
•
Diversification/vertical integration strategies
continued
Case 2: HNA Group
•
•
•
M&A Strategies
M&A in China
Case 3: Framedia
•
Competitive dynamics and the Chinese Way of
Competition
China-Foreign companies’ competition in the China
Market
•
Note
Group formation
Group written report due
Group written report due
Project outline due
•
Recess
•
•
Case 4: Wahaha
MNC’s China Challenge
Group written report due
•
Case 5: Levendary Café:
Chinese companies go global
Group written report due
11
•
•
Case 6: Galanz
Corporate governance in China
Group written report due
12
•
•
Course Summary
Student Project Presentation
•
Student Project Presentation
8
9
10
13
14
15
Study Break
Final Exam
4
Appendix 1:
Format and Grading Criteria for
Project Presentation and Written Reports
PROJECT PRESENTATION
TIME / LENGTH
No more than 15 minutes for
presentation;
FORMAT
GRADING
CRITERIA
PowerPoint
1) Presentation Styles: dressing,
overall professionalism, and
clarity (20%)
2) Subject/Problem Identification
(25%)
3)
Coherence in logic,
Framework application, and indepth analysis (30%)
CASE
WRITTEN REPORT
No more than 4 pages for main text. Other
supporting materials, if necessary, may be added
as appendix.
Times new roman, font 12, double space
1) Writing styles: spelling and grammar;
clarity, smooth and logical transition
(30%)
2) Coherence in logic, Framework
application, and in-depth analysis (70%)
4) Group coordination and Q&A
(25%)
For Presentation:
Please prepare sufficient (two-sided) PPT handouts of your presentation to the class. For the instructor: 3
slides per page; for other students: 6 slides per page.
For Written Report:
The assignment questions for the cases (please see Appendix 2 below) only serve as a “guide”. Although you
need to cover them and use them to help organize your report, I don’t expect you to adopt a Q/A format and
answer these questions one by one. Instead, please integrate your thoughts about the answers to the
questions into your analysis and form a coherent and smooth presentation/report. Also, it is not necessary
that each question is given a similar weight. Although you have the freedom to assign weights based on your
own preference, the general guideline is to place a greater focus on issues that require in-depth thinking and
analysis that go beyond what can be directly taken out from the case.
5
Appendix 2
Assignment Questions for Cases
1.
EachNet
a. What are the key features of an on-line C-2-C market? What are the unique challenges of C-2-C
businesses in China?
b. Does EachNet have a competitive advantage over other Auction sites in the China market? If not,
why? If yes, is the advantage sustainable?
c. Based on the information given in the case, are EachNet likely to continue to be the most successful
Auction site in China?
2.
HNA
a. What contributed to HNA’s success in the China Airline industry?
b. What are the challenges that the company faces at both the business and corporate levels?
c. Was the company's increasing breadth a distraction to the airline business or a route to competitive
advantage?
3.
Framedia
a. What are the alternatives that Framedia and Focus Media faced at the time of the case?
b. How would the proposed M&A affect the three companies’ (Focus Media, Target Media, and
Framedia) financial and competitive positions? How would it affect the downstream customer
industries?
c. What are implications of this case for companies seeking to engage in M&A activities in China?
4.
Wahaha
a. Based on case information and your own knowledge about Coco Cola and Pepsi, how has the
competition between the two dominant players in the US soft drink industry affected the industry’s
profit?
b. How would the situation be different in China? What had contributed to Future Cola’s increase in
market share so far? How sustainable was Future Cola’s market position?
c. If you were the top managers of Coco Cola or Pespi, how would you respond to the next round of
competition with local Chinese players?
5.
Levendary Cafe
a. What is your evaluation of the way Levendary Café has entered the China Market?
b. What changes (if any) should Mia Foster make? Specifically, what should she do about Louis Chen?
And what changes (if any) would you propose at headquarters?
c. Prepare a specific action program for Foster to help her deal with the need for continued growth in
China. What should be on the agenda for her meeting with Chen?
6.
Galanz
a. What lead to Galanz’s dominant position in microwave oven market?
b. Can Galanz replicate the successful model into air conditioner or other home appliances markets?
Why?
c. Can other Chinese companies imitate what Galanz has done in their globalization strategy?
6