MKT 372 UGS 371 Corporate Political Strategy WERNER 05487

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BGS 371/MKT 372

Corporate Political Strategy

Syllabus [OCTOBER 13, 2013 DRAFT]

Spring 2014

M/W (3:30 –4:45)

Timothy Werner, Ph.D.

Office: CBA North 5.248

Email: timothy.werner@mccombs.utexas.edu

Office Hours: M/W 11-12:30 and by appointment

Description

This course will explore the relationship between business and its stakeholders – including the government, social movements, NGOs, and activists – in the United States and around the world, with the goal of preparing you, as future managers, to develop and implement nonmarket strategies. Particular emphasis will be placed on reputation and brand management in the non-market. The course is divided into four parts: 1) understanding the non-market environment of the firm and its relationship to the market environment; 2) learning how to develop a general non-market strategy for a firm and how to evaluate the efficacy of different non-market tactics; 3) examining the role of non-market factors across different substantive public policy areas of concern to firms; and 4) exploring how non-market factors vary crossnationally and how they are shaped by international agreements.

The course will consistent of case-based discussions and lecture will be kept to a minimum.

Additionally, we will host two guest speakers.

Requirements and Assessment

A required case packet is available from Harvard Business School Publishing at the following link (also posted to Canvas):

I will also post a small number of additional readings to the course’s Canvas page ([C] denotes these readings below).

I will determine your grade for the course based on the following:

– Attendance and Participation: 35 percent

– Case Study Memoranda (2): 10 percent each

– Congressional Insights Simulation: 15 percent

– Final Exam: 30 percent

Details on the case study memoranda and the simulation exercise will be provided separately, and the date for the final exam is provided below in the Tentative Schedule.

1

Additional Information on Grading

I intend to follow a curve in this course in which I award roughly half As and half Bs. However, I will not hesitate to award grades of C or lower to students whose performance (or lack thereof) justifies such a mark.

Given the case-based nature of the course, attendance is required and active participation of all course members is critical. Beginning with the third class session, two absences are permitted without penalty to accommodate illness, interview scheduling, etc. For each absence beyond these initial two, 3 points will be deducted from the 35 percentage points allocated for participation. Two tardies will count as one absence. There are no exceptions.

Notifications regarding Disabilities, Religious Holidays, Campus Safety, Academic

Dishonesty, and Professionalism

Students with disabilities may request appropriate academic accommodations from the Division of Diversity and Community Engagement, Services for Students with Disabilities, 512-471-6259, http://www.utexas.edu/diversity/ddce/ssd/ .

By UT Austin policy, you must notify me of your pending absence at least fourteen days prior to the date of observance of a religious holy day. If you must miss a class, an examination, a work assignment, or a project in order to observe a religious holy day, you will be given an opportunity to complete the missed work within a reasonable time after the absence.

Please take the time to review the recommendations regarding emergency evacuation from the

Office of Campus Safety and Security, 512-471-5767, http://www.utexas.edu/safety

The McCombs School of Business has no tolerance for acts of scholastic dishonesty. Students are expected to abide by the School’s and University’s policies on scholastic dishonesty. The responsibilities of both students and faculty with regard to scholastic dishonesty are described in detail in the BBA Program’s Statement on Scholastic Dishonesty at http://www.mccombs.utexas.edu/BBA/Code-of-Ethics.aspx

. By teaching this course, I have agreed to observe all faculty responsibilities described in those documents. By enrolling in this class, you have agreed to observe all student responsibilities described in those documents. If the application of the Statements on Scholastic Dishonesty to this class or its assignments is unclear in any way, it is your responsibility to ask me for clarification. Students who violate

University rules on scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and/or dismissal from the University. Since dishonesty harms the individual, all students, the integrity of the University, and the value of our academic brand, policies on scholastic dishonesty will be strictly enforced. You should refer to the Student

Judicial Services website at http://deanofstudents.utexas.edu/sjs/ to access the official

University policies and procedures on scholastic dishonesty as well as further elaboration on what constitutes scholastic dishonesty.

Finally, students are also expected to abide by the McCombs Classroom Professionalism

Policy, which includes a prohibition on laptop computers and similar devices (e.g., tablets and smart phones), absent a necessary learning accommodation.

Tentative Schedule

2

January Topic & Required Reading

13 Organizational Meeting

- Palin, Adam. 2012. “Schools widen their political horizons.” Financial Times

November 4. [C]

- Porter, Michael. 1996 . “What is Strategy?” Harvard Business Review . [C]

15 Market & Non-Market Environments

- Baron, David P. 1995. “Integrated Strategy: Market and Nonmarket

Components.” California Management Review 37 (2): 47 –65. [C]

Market & Non-Market Environments, ctd. 20

22

27

- Case : Consumer Awareness or Disease Mongering? GlaxoSmithKline and the

Restless Legs Syndrome

Non-Market Competition: Public Opinion and Social Movements

- Case : Wal-Mart: The Store Wars

Non-Market Competition: Non-Governmental Organizations

- Case : Of Orangutans and Chainsaws: Cargill Inc. Confronts the Rainforest

Action Network Advocacy

29 Overview of Non-Market Strategy

- Bonardi, JeanPhilippe, Amy J. Hillman, and Gerald D. Keim. 2005. “The

Attractiveness of Political Markets: Implications for Firm Strategy.” Academy of

Management Review 30 (2): 397 –413. [C]

February

3 Implementing Non-Market Strategies I: Electoral Politics

- Case : Rethinking Political Activity at Target

5

10

12

17

19

February

24

26

Implementing Non-Market Strategies II: Legislative Lobbying

- Case : Lobbying for Love? Southwest Airlines and the Wright Amendment

Implementing Non-Market Strategies III: Industry-wide Coalitions

- Case : Politics of Tobacco Control: A History of the U.S. Tobacco Industry

Implementing Non-Market Strategies IV: Grassroots Advocacy

- Walker, Edward T. 2014. Grassroots For Hire . Cambridge, UK: Cambridge

University Press. Chapter 7 excerpt (pp. 227-256). [C]

Implementing Non-Market Strategies V: The Courts

- Case : AT&T v. Microsoft (A): IP Litigation Strategy

Guest speaker

Congressional Insights Simulation: Day One

Congressional Insights Simulation: Day Two

3

19

24

26

31

April

2

April

21

23

14

7

9

16

March

3

5

10-12

17

Congressional Insights Simulation Review

Strategy Implementation Reviewed

- Case : AIG and the American Taxpayers

Spring Break: No class

Regulation

- Burrows, Vanessa K., and Todd Garvey. 2011. A Brief Overview of

Rulemaking and Judicial Review . Washington, DC: Congressional Research

Service. [C]

Regulation, ctd.

- Case : Goodyear and the Threat of Government Tire Grading

Environmental Regulation

- Case : Keystone XL Pipeline

Guest Speaker

Financial Market Regulation

- Case : The Volcker Rule: Financial Crisis, Bailouts, and the Need for Financial

Regulation

Comparing Non-Market Environments

- Khanna, Tarun, Krishna G. Palepu, and Jayant Sinha. 2005. “Strategies that

Fit Emerging Markets.” Harvard Business Review . [C]

Non-Market Issues in the European Union

- Case : International Lobbying and The Dow Chemical Company

Non-Market Issues in Latin America

- Case :

Colbun and the Future of Chile’s Power

Non-Market Issues in China

- Case : Google in China (A)

Non-Market Issues in India

- Case : Infosys in India: Building a Software Giant in a Corrupt Environment

Non-Market Issues in Africa

- Case : Life, Death, and Property Rights: The Pharmaceutical Industry Faces

AIDS in Africa

International Trade Issues

4

28

30

May

X

- Case : World Trade Organization and the Seattle Talks

International Trade Issues, ctd.

- Case : Cemex and Antidumping

Review Session & End of Course Evaluations

Final Exam (x-x)

5

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