LOYOLA MARYMOUNT UNIVERSITY
College of Business Administration
MBAI 610
Management Strategy
Professor Jeff Gale
Spring 2009
Office: Hilton Business Center 265
Phone: (310) 338-7406 or 338-4566 (messages)
E-mail: jgale@lmu.edu
Office Hours: Tuesdays 1:30 –3:00 pm and 4:15-5:30 pm, Wednesdays 4:00 – 6:00 pm and 6:30-7:00 pm
(MBA only), or by appointment
COURSE PURPOSE
This course is a basic strategic management course. It is a bit different than the core courses and most
other courses in the program. Instead of concentrating on a specific functional discipline such as
accounting or finance, you will be required to take a top management approach to examining issues under
consideration. Therefore it will be necessary for you to integrate the skills and knowledge you have
obtained to:
a.
b.
c.
d.
e.
Develop an awareness of any inherent assumptions
Understand the problems presented
Develop an analysis of the situation
Construct a viable alternative set of courses of action
Make specific recommendations consistent with the nature of the situation.
COURSE OBJECTIVES
1. To develop an appreciation of the type, variety and magnitude of issues that must be
considered and decisions that must be made by the business entity in a complex society.
2. To develop the ability to engage in "strategic thinking," to examine alternative courses of
action to select the "best fit" strategy, and to defend your strategic decisions.
3. To provide exposure to the problems and issues involved in organizing and controlling a
complex organization.
4. To integrate previously acquired analytic tools and viewpoints of specific functional disciplines
as a means of making decisions and developing organizational plans.
TEXTS
De Kluyver, Cornelis A. and John A. Pearce II. Strategy: A View from the Top.2nd ed. Prentice Hall, 2006.
(Referred to as "D" in this syllabus.) Also available in downloadable format from
http://www.coursesmart.com/9780136041498
A packet of cases (ID c27944) available for purchase at
http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name=cp&c=c27944
StratSim Management. Interpretive Software, Inc., 2009.
http://www.interpretive.com/ (User ID to be distributed)
MBAI 610—Spring 2009
Page 2
ASSIGNMENTS AND GRADING
GRADING
There are four potential components to the grade in this class. These are an optional take-home midterm
assignment, a final examination, a team-based strategy simulation exercise and paper and class
participation. By February 4, each student will execute a grading contract in which he or she chooses a
percentage of their grade to be accounted for by each component, subject to a maximum and minimum
percentage for each component.
As this is largely a discussion-based class, all students are expected to have read all cases, to be prepared,
and to participate in classroom activities. The instructor reserves the right to penalize individuals
who do not follow through on this preparation and participation up to one full grade on the final
course grade.
ASSIGNMENTS
I. Midterm Take-home Assignment
This assignment will be distributed on February 25. It is a take-home essay assignment set in a case.
Questions addressed will be relevant to those course concepts covered up to that point. The midterm
assignment will be due on March 18.
II. Strategy Simulation
This component of the course is experiential and set within a computer-based automobile industry
simulation. In teams, students will manage the operations of an automobile firm for eight years of
simulation competing against each other.
The grading for the strategy simulation will based upon two components—the playing of the simulation
and a team analysis and plan for the firm managed. Detail on the grading will be distributed later in the
course prior to the commencement of the exercise.
III. Final Examination
There will be a final case analysis which requires applying tools and techniques from the course. Detail
on the examination will be provided later in the course.
SPECIAL ACCOMMODATIONS: Students with special needs who need reasonable modifications,
special assistance, or accommodations in this course should promptly direct their request to the
Disability Support Services Office. Any student who currently has a documented disability (physical,
learning, or psychological) needing academic accommodations should contact the Disability Services
Office (Daum Hall # 224, x84535) as early in the semester as possible. All discussions will remain
confidential. Please visit www.lmu.edu/dss <http://www.lmu.edu/dss> for additional information.
MBAI 610—Spring 2009
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COURSE SCHEDULE
Class Date
Topic
January 14
Course Introduction
January 21
The Strategy Concept and Mission/Vision
D--Ch. 1; Case: Case: "The Cola Wars Continue: Coke vs.
Pepsi in 2006”:
January 28,
February 4
Environmental Analysis and Industry Analysis
D--Ch. 3,4; Case: "The Cola Wars Continue: Coke vs.
Pepsi in 2006”
February 11
Introduction to StratSim
February 18,25
Internal Assessment
D---Ch. 5; Cases: "Wal-Mart Stores in 2003" and “Wal-Mart, 2007”
March 4
Business Strategy
D--Ch. 6
March 11
Spring Break
March 18
Business Strategy (continued)
D--Ch. 6; Case: "Apple, 2008”
March 25
Business Strategy in Technology-Intensive and Other Specific Contexts
D—Ch. 7; Case: “GE Healthcare, 2006”
April 1,8
Corporate Strategy
D-Ch. 9,10; Case: ""Newell Rubbermaid: Strategy in Transition"
April 15
Strategy in an International Setting
D-Chap. 8; Case: "Lincoln Electric”
April 22
Strategy Implementation
D—Ch. 2; Case: “Christiana Gold Leading Change at Western Union”
April 29
StratSim Reports/Presentations
May 6
Final Case Analysis
MBAI 610—Spring 2009
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Case Discussion Questions
Assignment for January 21, 28, February 4
Case: “Cola Wars Continue: Coke and Pepsi in 2006”
THE FIRST QUESTION WILL BE EMPHASIZED IN THE JANUARY 21 MEETING, THE SECOND
QUESTION IN THE JANUARY 28 MEETING, AND THE OTHERS ON FEBRUARY 4.
1. What would the mission statement(s) for Coca Cola look like? What would an appropriate vision
for the firm be?
2. If you were asked to work on developing strategy for Coca Cola for the 2007-2011 time frame,
what are the most important trends in the general environment of the firm that should be
considered and how will they impact the company?
3. Based on your industry analysis, why has the soft drink industry historically been so profitable?
4. How profitable is the bottling business in comparison to the concentrate business? Why is the
difference so large?
5. How has the competition between Coke and Pepsi affected the industry profitability?
6. How can Coke and Pepsi sustain profits in the wake of flattening demand and growing popularity
of non-carbonated drinks?
Assignment for February 18, 25
Case: “Wal-Mart Stores in 2003” and “Wal-Mart, 2007”
1. What is the nature of Wal-Mart’s competitive advantage? What distinctive competencies is it
based on?
2. How sustainable is the advantage?
3. How transferable is the advantage to:
a. New formats?
b. International operations?
Assignment for March 18
Case: “Apple Computer, 2008”
1. Historically, what was Apple’s competitive advantage?
2. How did changes in the structure of the PC industry since 1990 impact Apple?
3. What business strategies has Apple followed in the Mac business since 1990? What is your
evaluation of them?
4. What business strategies has Apple followed in its MP3 player business with the iPod? Will it be
able to stay on top for the next 5 years? Why?
5. Has Steve Jobs solved the fundamental “problem” at Apple? What would you recommend that he
do in the future?
Assignment for March 25
Case” “General Electric Healthcare, 2006”
1. Was buying Amersham a good idea? Why or why not?
2. How does Amersham relate to the core idea behind the Global Product Company that was the
essence of GE Medical Systems (the predecessor company to GE Healthcare):
3. What kind os actions did Immelt and Castell have to take in advance of the acquisition to ensure
that any potential gains could be realized? What must Joe Hogan, in his new CEO role, now do to
build on their earlier actions?
MBAI 610—Spring 2009
Page 5
Assignment for April 8
Case: “Newell Rubbermaid: Strategy in Transition
1. What was Newell’s corporate strategy up to the late 1990’s? How did the company add value to
the businesses in its portfolio?
2. Why did the firm choose to acquire Calphalon, Burnes and Rubbermaid? Did they fit?
3. What went wrong?
4. What is the new corporate strategy of the firm? Does it make sense? How well is it working?
5. What challenges face the company at the time of the case?
Assignment for April 15
Case: “Lincoln Electric”
1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that
forced out giants such as G.E. and Westinghouse? What accounts for their success?
2. Given this success, why were the early efforts at internationalization so shaky and the overall
record a mixed one? How would you characterize the strategy they are currently following?
3. In which countries is Lincoln Electric likely to be most successful or least successful? Why? How
should this guide the choice of where to locate production facilities abroad?
4. Does it make sense for Lincoln Electric to enter India and, if so, what mode of entry should they
choose?
5. When Lincoln locates in another country, what factors should determine how much it adapts its
core incentive management system to local labor market norms?
Assignment for April 22
Case: “Christina Gold Leading Change at Western Union”
1. Was the restructuring needed at Western Union? Why or why not?
2. What were the most important design changes that were made and what organizational activities
are likely to be more effective as a result of these changes?
3. What difficulties can be expected as a result of these changes? What can management do to
prevent major unintended consequences?
4. How well-aligned is the new structure with the six core strategies? What improvements will
result? Do you anticipate any problems?