BRIGHAM YOUNG UNIVERSITY
Business Management 498 Section 3
Strategic Management
Winter Semester, 2009
Robert J. Jensen
Assistant Professor of Strategy
Department of Organizational Leadership and Strategy
Marriott School
Telephone: 801-422-4413
Office: 569 TNRB
email: robertjensen@byu.edu
Office Hours: 1:00-2:00 T
________________________________________________________________________________
Course Description
Strategic management has the goal of helping firms achieve and sustain superior performance. In this course, you will
acquire tools, insights, frameworks, and experience that will aid you in helping organizations achieve this goal.
There are many considerations in determining how best a firm may sustain superior performance—or what we often call
“competitive advantage.” These include the nature of the industry in which the firm competes, i.e. the numbers of
buyers, sellers, or competitors for a firm’s product; the internal capabilities of the firm and the resources upon which it
may draw to achieve its goals; the nature and extent of its cooperative relationships with other firms; the diversity, or
scope, of the activities it undertakes, or where it locates its operations; and how it uses or responds to new technologies or
ways of doing business. The course systematically considers these dimensions as we work to build a comprehensive
understanding of how to strategically manage the enterprise. You will be placed in the role of key decision maker and be
asked to suggest a course of action—a strategy—that you believe will best achieve the firm’s goal of superior
performance in a series of particular situations that occurred in real firms.
The ultimate objective of the course is for you to develop a solid foundation upon which to conceive of strategic options
for firms both large and small and to understand which options among many are likely to be the most successful in
leading to superior performance for the firm. This will be achieved as you acquire analytical approaches, learn basic
principles, and grapple with the complexities and ambiguities of actual business situations. In order to help you learn
how to assess complex business situations your classroom experience will involve a number of different learning
modalities including lecture, case work, experiential learning, analysis of current businesses, and chances to experience
crafting your own strategies through a strategy simulation. As you participate fully, you will become skilled strategic
analysts, capable of assessing or developing good strategy in a variety of business situation.
Course Learning Objectives
By the end of this course the student should be able to:
►Recall, explain, and give examples of the major elements of strategy and the drivers of competitive advantage.
►Apply analytical models to complex business situations and generate strategic recommendations.
►Critically analyze the external and internal environments of a business organization and formulate appropriate
strategies.
►Demonstrate problem solving skills by developing hypotheses about the effect of strategic decisions that lead
to sensible conclusions.
►Make appropriate decisions when formulating and implementing strategy.
►Demonstrate team skills through active participation in group projects and the assumption and exercise of
responsibility in a collaborative mode.
►Communicate effectively, both orally and in writing, concerning strategy concepts, models, and analyses.
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In addition to the overall objectives listed here, I have included objectives for the each of the various sections of the
course in the case preparation guide posted on Blackboard. Finally, at the end of the syllabus please find a matrix of
the learning objectives listed here and how they will be addressed through class experiences.
Strategy and the Gospel
During our discussions we may encounter situations in which we discover important tensions that are worth deeper
exploration in the context of our individual efforts to live the Gospel. I encourage explicit discussion of these tensions
when they arise. The business world repeatedly presents opportunities for individuals to test their integrity, to challenge
their moral stance, to choose actions that are consistent or inconsistent with their character, values, or beliefs. I hope that
this course can, in some small way, help you prepare to weather such storms with your integrity intact. While the
strategic situations we will discuss do not usually present ethical dilemmas, some may wonder what actions an “ethical
strategist” should take in a particular situation. Others may claim that “ethical strategist” is an oxymoron since efforts to
secure advantage relative to others are problematic in the first place. I encourage you to think carefully about these issues
as the class proceeds and reconcile your answers with your own values through class discussion and personal reflection.
Course Format
The course consists of:
 Cases
 Articles
 Simulation
Articles typically offer theoretical insights into the general problem being addressed and the case analysis provides
practice in applying concepts to concrete organizational situations. The simulation lets you practice making strategic
decisions yourself. It is imperative that you thoroughly prepare the cases and articles assigned for each class in advance.
This includes, where possible, doing qualitative and quantitative analyses of the issues in question in order to be able to
address the issue at hand with as much rigor as possible.
Course Materials
1. Course Pack containing articles and case readings to be picked up at BYU Bookstore.
2. Articles from Electronic Course Reserve that you can find through our course link on Blackboard.
3. Simulation to be purchased through Interpretive Simulations at a cost of $40/student.
Group Work
Each student will join (or be assigned to) a group in the third session of the semester with whom they will participate in
various assignments as well as the simulation. Please be thinking about who you would like to associate with in your
groups during the first session. You are welcome and even encouraged to work together in groups on case preparation,
but this is your choice. Some groups may prepare for every case together. Other groups may meet to prepare only some
of the cases depending on the needs of group members. Regardless of the approach you take, each individual must be
prepared to answer questions or to suggest and defend actions pertaining to the case in class. Falling back on the group
in these circumstances, or providing support for your recommendations by appealing to the group’s work in lieu of a
reasoned response, e.g. “well, that’s what my group came up with,” is not acceptable.
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Course Evaluation
1. Participation
Class Participation
10%
Group Work Participation (graded by group) 5%
2. Assignments and Quizzes
Assignments
5%
Quizzes
10%
3. Group Strategy Analysis
4. Simulation
Sim. Assignments
Participation (graded by group)
Learnings Paper
15%
15%
35%
35%
10%
5%
20%
Class Participation
 Graded based on contribution to class discussion – both quantity and quality with an emphasis on
quality. To get an A grade you will want to be prepared and participate with at least one quality
comment most class periods.
 Quality participation develops insights, brings new ideas or information, utilizes concepts and theories
from class, and shows evidence that you used structured problem solving in preparing the case.
 There will be no excused absences for participation grades. However, I will drop your lowest grade to
allow for legitimate excuses.
 Group Work Participation refers to the quality and quantity of participation in three different activities:
1) in class group work, 2) the group project, 3) the simulation.
Assignments and Quizzes
 Quizzes administered on Blackboard.
o Due no later than 1 hour before class
o Will be given on most days we meet in class.
o Will cover material from that day’s reading as well as in-class material from previous classes.
o No missed quizzes excused but will drop the lowest quiz score to allow for excused abscenses.
 Assignments are in bold in the class schedule and outlined in greater detail in the class/case
preparation guide posted on Blackboard.
o No missed assignments will be excused. If absent you are expected to turn it in beforehand.
Group Strategy Analysis
 Due in three parts: External Analysis, Internal Analysis, Recommendations. Due dates listed in
schedule. Expectations/Helps for preparation along with the grading criteria and examples of
excellent projects are posted on Blackboard.
 Final project is due on Wednesday, April 22nd at 7:00 a.m. (the day and time of finals) and
includes all parts together in a form ready to hand in to a board of directors (professional appearance).
 Each Phase can be no more than 4 pages (1” margins, 12 pt. type, single spaced) although all graphs,
tables, and charts can be put in an appendix (I highly recommend the appropriate use of these).
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 Can choose any firm, global, national, or local.
o Cannot be a firm we do a case on in class.
o Ensure that if firm is diversified you choose only one division.
o Must be able to get access to sufficient data to complete the project (particularly applicable to
local firms).
o All firms must be approved by me before beginning.
 Phase I and Phase II can be revised for a higher grade. To be considered revisions must be turned in
with the final project along with initial grades.
 Good projects will closely follow the grading criteria, utilize most of the concepts/tools from class, be
data driven, fit together in a coherent whole, and address significant issues/problems or opportunities
the firm faces.
Simulation
 Opportunity to practice crafting and executing an internationalization strategy
 Competitive: head to head against other teams in the class
 Grades determined by
o Quality of thought and analysis in two simulation assignments
 Strategy Development Assignment. Instructions on Blackboard.
 Competitive Position/Competitor Analysis Assignment. Instructions on Blackboard.
o Learnings Paper due at final exam period. 1-6 page Individually written paper addressing what
you have learned from the simulation. Instructions posted on Blackboard.
 The group that comes in first place will not have to write the Learnings Paper.
 The group that comes in second place will get 10 points in extra credit on the
Learnings Paper.
 The group that comes in third place will get 5 points extra credit.
 Consists of an undetermined number of rounds.
o First round will be practice.
 All rounds due by 8:59 p.m. sharp (no exceptions)
 Simulation administered online at www.interpretive.com.
Academic Policies
The Marriott School continues to adopt school wide policies dealing with the various components of student and
faculty conduct. Such policies include statements on academic honesty, sexual harassment, students with
disabilities, promotion and tolerance of diversity, and the use of technology (including cell phones which are not
allowed) in the classroom. It is important for you to understand these policies as they form the overall institutional
architecture of this course. The policies can be accessed at http://marriottschool.byu.edu/classroompolicies/.
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Class Schedule and Assignments
(Assignments in bold. An expanded schedule with case preparation questions can be found on Blackboard)
Date
Topic
Reading/Case/Assignment
1
2
6Jan
8Jan
Introduction
Analyzing Business Situations
► “What is Strategy” Porter, HBR
►Case: Wal-Mart, Packet
3Q
13Jan
Industry Analysis I- 5 Forces
► “How Competitive Forces Shape Strategy” Porter, HBR
►Case: Cola Wars Continue, Packet
►Cola Entry Spreadsheet Due
4Q
5Q
15Jan
20Jan
Industry Analysis II- 5 Forces, Value Chain
Industry Analysis III- Transaction Cost Economics and Vertical
Integration
6Q
22Jan
Industry Analysis IV-
7
27Jan
Group Research Day: No Class
8Q
29Jan
Resources and Capabilities
9Q
10 Q
3Feb
5Feb
Resources and Capabilities II
Generic Strategy – Cost Advantage
11 Q
10Feb
Generic Strategy – Differentiation
12 Q
12Feb
13
19Feb
Generic Strategy – Cost Advantage II: Competitor Analysis and
Outsourcing
Generic Strategies reprise
14 Q
24Feb
Group Research Day: No Class
Strategic Groups and Strategy Mapping
► Case: “How Chrysler Created an American Keiretsu” Dyer,
HBR
►Case: “Hardball is Still GM’s Game” Packet
►Case: Supplier Management Dilemma, Packet
► “Charting Your Company’s Future” Kim & Mauborgne,
HBR
►Case: Apple Computer 2005
►Strategic Canvas/Maps Due
► “Analyzing Resources and Capabilities” Grant, Course
Reserve
►Case: Intel Corporation: 1968-1997, Packet
►Group Phase I Due
5
► “Cost Advantage” Grant, Reserve
►Case: Honda (A), Packet
►Motorcycle Manufacturer Experience Curve Due
► “Discovering New Points of Diff.” MacMillan & McGrath,
HBR
►Case: Harley Davidson, Packet
► Case: “Cold Competition” Magaziner & Patinkin, HBR
►Case: Southwest Airlines 1993, Packet
►Graph of Correlation btw Experience and Profit Due
15 Q
16
26Feb
3Mar
17
18
19
20
21
22
23
24
5Mar
10Mar
12Mar
17Mar
19Mar
24Mar
26Mar
31Mar
Simulation Kick Off
Simulation Practice Round 1 due. Will meet in class to discuss the
practice round.
Simulation Round 1 due
Simulation Round 2 due
Simulation Round 3 due
Simulation Round 4 due
Simulation Round 5 due
Simulation Round 6 due
Simulation Round 7 due
Simulation Round 8 due
25
26 Q
2Apr
7Apr
Cooperative Strategy - Alliances
Strategy as Revolution I
27 Q
9Apr
Strategy as Revolution II
28 Q
Finals
Period
14Apr
22Apr
7 a.m.
Growth Strategy
Group Presentations
►Group Phase II Due
►Simulation Assignment #1 Due
► Simulation Assignment #2 Due
► “Disruptive Technologies: Catching the Wave” Bower &
Christensen, HBR
►Case: Articles on Skype, Packet
► Learnings Paper Due
►Case: Leadership Online: Barnes & Noble vs. Amazon,
Packet
►Case: Starbucks, Packet
► Group Final Project Due
Assessment of Learning Objectives
1. Recall, explain, and give examples of the major elements of strategy and
the drivers of competitive advantage.
2. Apply analytical models to complex business situations and generate
strategic recommendations.
3. Critically analyze the external and internal environments of a business
organization and formulate appropriate strategies.
4. Demonstrate problem solving skills by developing hypotheses about the
effect of strategic decisions that lead to sensible conclusions.
5. Make appropriate decisions when formulating and implementing strategy.
6. Demonstrate team skills through active participation in group projects and
the assumption and exercise of responsibility in a collaborative mode.
7. Communicate effectively, both orally and in writing, concerning strategy
concepts, models, and analyses.
Assignments/
Quizzes
X
In Class
Experiences
X
X
X
X
X
X
Group
Work
X
Readings
Lectures
Class
Discussions
Sim.
Strategy
Analysis
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
6
X