NATIONAL UNIVERSITY OF SINGAPORE
NUS BUSINESS SCHOOL
BMA 5013 Corporate Strategy
Special Term 1, 2014
Instructor: Kulwant Singh
MRB #06-14
6516 3164
Kulwant@nus.edu.sg
Introduction
This module focuses on the central question in business – how can an organization
achieve success? We will address this question from the perspective of a leader who
heads a unit or an organization, and evaluate what the leader does to achieve
success for his or her organization. We will concentrate on the strategic
responsibilities of leaders and focus primarily on firm and business success.
We will introduce concepts and frameworks that are rooted in the theory of strategy
and management, which have proved valuable in practice. Key concepts relating to
strategy, competition, competencies and customers will be combined with analysis
of difficult choices firms make to achieve their intent. We will also discuss what
managers often describe as their greatest challenge - implementing strategy. We
will focus on the thinking, skills and actions required of manager for the
development, communication and implementation of strategic organizational
choices towards organizational success.
Our assumption is that firms operate in complex, changing and global
environments. We will specifically focus our discussions on Asia, and will attempt to
integrate current events into our discussions. We will deal primarily with issues of
organizational effectiveness rather than organizational efficiency - or as Peter
Drucker wrote, with "doing the right things'' rather than "doing things right.''
Your experience as leaders is valuable and integrating this experience with strategy
concepts and models will provide useful insights. Just as the work of the general
manager crosses all functional areas, this module builds on your knowledge of
business developed in other modules and on the job. You should focus on adapting
all our discussions to your specific context and organization.
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Objectives
This module aims to achieve the following:
 Clarify the concept & application of strategy in a variety of business contexts, particularly
Asia
 Demonstrate the importance and centrality of strategy for business success
 Identify firm and environment factors that determine firm success
 Introduce frameworks that facilitate strategic thinking and action
 Introduce a variety of tools and techniques that help leaders develop the skills and
knowledge to identify, evaluate and choose between options in a range of competitive
business situations.
 Consider issues of ethical leadership and sustainable business.
 Encourage participants to develop an interest in strategy and their own view of how
strategy can help them and their organizations achieve success.
Teaching Modes
There will not be any lectures in this module. All class material will be distributed on
IVLE ahead of time. Students are expected to review this material and the assigned
readings, so that they are ready to participate actively in the learning in class. The
instructor will highlight key aspects of the material and focus on elaborating on
important details, but will try to avoid extensive lectures.
We will also start every lesson by discussing current business events that relate to
strategy. The aim is to provide an opportunity to apply concepts and frameworks,
to evaluate their relevance and applicability. Ideally, this will allow us to understand
underlying issues, predict what will happen and demonstrate the value of strategy.
One problem with studying strategy is the volume of available material, much of it
from popular sources. Unfortunately, practitioners, consultants and some wellintentioned authors often inappropriately generalize from very specific experiences,
limiting the value of this material. Others use new language to describe wellestablished concepts to suggest new ideas where there are none. To avoid falling
into this trap, we will rely on the large and growing base of strategy research to
support our propositions and "principles."
You will be required to read only a narrow slice of this material, to understand key
concepts and frameworks. In addition, a small number of research-oriented optional
readings are provided, for those interested in exploring the very large base of
strategy theory and research from which we draw our core ideas. These will be
complemented with light newspaper articles. All optional readings are in IVLE.
Another aspect of our discussions will be to avoid using or introducing any term
that is not found in the dictionary or that is not in common daily use. The aim is
simple - to avoid jargon, fads and complex terminology, so that we can focus on
core principles, concepts and key determinants of firm success.
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Text and Readings
We will use the following as our text:
Singh, Kulwant and Andrew Delios. 2005. Strategy for Success in Asia. John
Wiley (S&D).
We will also use selected cases from the following:
Singh, K., Pangarkar, N., & Heracleous, L. 2013. Business Strategy in Asia: A
Casebook, Fourth Edition, Cengage.
There are many other excellent books and readings on strategy, which we will use
as indicated in the schedule or which we will highlight in class.
There are obviously many excellent print and online sources. The following
represent a very limited selection that busy MBA students should consider:
The Economist. This is the best source of reliable business and strategy news
and analysis. Print and on-line subscriptions (economist.com/) are highly
recommended. A useful option on the Economist website is a summary of what
the more serious business journals publish, which is available at
economist.com/business/globalexecutive/.
The Financial Times. Print copies are available free in the School. A subscription
is required for most of the best online content: news.ft.com/home/rw/.
Global Business. An excellent but under-utilized source of outstanding radio
programmes on the BBC. Podcasts are available at
www.bbc.co.uk/radio/podcasts/worldbiz/.
YaleGlobal. A useful source of brief but thoughtful articles on global business and
political trends is: yaleglobal.yale.edu.
Globalist. Another useful source of screened content relating to global business
and broader trends. www.theglobalist.com/emails/current.html.
The major strategy consulting firms now offer free access to their journal. It
may be useful to enroll on Mckinsey's list here: www.mckinsey.com
Finally, several academic institutions provide useful links and access to
information resources. knowledge@wharton (knowledge.wharton.upenn.edu)
provides current and thoughtful articles. The HBR and its online option (hbr.org)
are useful.
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Schedule
SESSION 1: Strategy Concepts And Key Frameworks
The concept of strategy
Leadership and Strategy
Frameworks to guide strategic thinking and action
Pre-class Puzzle
Is business success random? If it is, you cannot predict or prepare for success, so why
study firms or strategy? If success is not random, it must be possible to identify the
predictors of business success. What are these?
Class Exercise
Determinants of firm success
Readings
S&D, Chapter 1: Strategy
Optional Readings
A strategic approach for firms
Review strategy, take crisis as opportunity
Session 2: Strategy for Success
Strategy and success
Applying strategy tools and concepts to a complex case
Strategy and sustainable business
Pre-class Puzzle
Why, despite the importance of the issue, do we know so little of what determines firm
success? Or, if the determinants are clear, why don't all firms focus on these factors?
What prevents all firms from converging on the same strategies? Why are so many
senior managers (including your bosses?) unable to articulate their strategy?
Discussion Issue
Most people agree that ethics are a key influence on their behaviour. Why does this view
not hold in business? We would not accept a doctor or a judge offering bribes to
“customers” or to suppliers to improve the performance of their organizations. Why do
many managers think that it is acceptable for business leaders to do so? Do ethics
influence strategy?
Class exercise
Our first session and Chapter 1 of S&D introduced a framework for developing strategy.
How would you improve this framework?
Case
AirAsia
What explain AirAsia’s success?
How sustainable is AirAsia’s success?
How could competitors overcome AirAsia?
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Readings
Are you sure you have a strategy? Hambrick & Fredrickson.
Optional Readings
Strategic giving
Session 3: Industry Analysis
The importance of industry structure
Introduce the basic model for industry analysis
Identify the implications of industry structure
Pre-class Puzzle
Is competition good or bad? Why?
Case
The Liner Shipping Industry
What explains the poor profitability of the Liner Shipping Industry?
Why do so many firms continue to operate in this industry?
CASE PREPARATION GUIDE
Despite the importance of the Liner Shipping industry, it has often suffered from poor
profitability. Excessive competition is commonly identified as one cause. Your task is to
use the "Five Forces" model (see reading) to evaluate competition in this industry. What
can you conclude about the profitability of this industry? Why are some industries
attractive while having poor profitability?
Reading
Five competitive forces that shape strategy. Porter.
Session 4: Industry and Competitor Analysis
The CAPRI model
Cost and differentiation
Industry dynamics
Pre-class Puzzle
If you (and your firm) were not already in your industry, would you enter it now?
Which industry would you enter now and why?
Reading
Blind spots in competitive analysis. Zahra & Chaples.
Session 5: Resources and Competencies
Resources and competencies
The value chain
The Scope of the firm
Pre-class Puzzle
How do some firms with limited resources become highly competent and successful
while other better endowed firms fail to develop competencies? Refer back to the
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AirAsia case. What are AirAsia's competencies? What role do its strategy and structure
play in the development and maintenance of these competencies?
Readings
Developing consensus on firm competencies and capabilities. Marino.
Optional Readings
Diversify or die-versify?
Research note – Differentiation
***Group integration project proposals to be submitted at the end of session 6***
Session 6: Dynamic Competencies and Strategy
Competencies as the key driver internal driver of strategy
Building dynamic Competencies
Pre-class Puzzle
Should a firm define its competencies and use these to achieve success in an appropriate
industry? Or, should a firm understand its industry’s characteristics and ensure that it
has the necessary competencies to achieve success?
Optional Readings
Challenges of diversification for SMEs
Research note - Technological Complexity
Session 7: Growth Strategies
The importance and risks of growth
How firms can grow
Strategies for growth
Pre-class Puzzle
What are the consequences of growth? Greater profitability and success are possible
outcomes. What are other outcomes?
Case
AIRASIA: A Second Decade of Exceptional Growth
What can AirAsia do to continue its remarkable growth?
Should it accept lower growth rates as inevitable?
Readings
S&D, Chapter 5, Strategies for profitable growth
Optional Readings
More than just Growing Sales Overseas: Singapore Firms abroad
Research note - Death of Lethargic
Research note - Pre-Entry Alliances
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SESSION 8: ALLIANCES
The benefits and risks of alliances
Successful alliances
Strategy, competencies and alliances
Pre-class Puzzle
Are all alliances strategic? If alliances offer significant benefits, why do a majority end
within about five years?
Case
Volkswagen and Suzuki: Starting and Stalling
Why did the alliance fail?
What would you have done differently to succeed with this alliance?
Readings
S&D Chapter 6. Alliances for success.
Optional Reading
Research note - Precarious Collaboration
Research note – Growth dynamics
Session 9: Acquisitions
Successful acquisitions
Key determinants of successful acquisitions
Pre-class Puzzle
More than any other strategic move, acquisitions destroy value. Yet they continue to be
popular. Why? Acquisitions also often occur in waves, with a significant acquisition
followed by more within the same industry. Identify a recent acquisition that you think
will be followed by a wave.
Case
Tata Motors (A): Acquisition of Daewoo Commercial Vehicles Company
What did Daewoo Commercial Vehicles want from this deal?
What did each Tata Motors want from this deal?
What lessons does this case offer for acquisitions?
Readings
S&D, Chapter 7, Acquisitions for success
Session 10: Environment Analysis & Key Business Trends in Asia
Key characteristics and trends in Asia
The business environment in Asia
Business opportunities in Asia
Pre-class Puzzle
Asia has had about four decades of very high growth rates. What does the future hold?
Will Asia become more like the “West” or will it evolve differently?
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Class Exercise
What are the most important positive and negative characteristics of Asia? How will
these change over the next decade?
Readings
S&D, Chapter 2, Strategy in Asia.
Optional Readings
Post-crisis Asia: Opportunities and Challenges
***Group integration project reports to be submitted at the end of session 10***
Session 11: Strategy in the Asia Pacific
Key drivers of strategy in Asia
A model for strategy in Asia
Pre-class Puzzle
Identify “world class” consumer (as opposed to industrial) firms from Asia. Why are
there so few from outside Japan and South Korea?
Class Exercise:
Identify a framework for strategy in Asia
Optional Readings
Knowing the rules of doing business in Asia
Research note - Guided Competition
SESSION 12: Implementing Strategy
The challenges of implementing strategy
Key drivers of successful implementation
A framework for implementing strategy
Pre-class Puzzle
Many practitioners claim that it is easy to formulate strategies - the real challenge is to
implement strategies. Yet they seem to put most of their efforts in formulating visions,
and at times, developing strategy, while putting little effort in implementing strategy.
Why?
Class Exercise
Develop a framework for implementing strategy.
Readings
Secrets to successful strategy implementation. Neilson, Martin and Powers.
Session 13: Strategy, Structure and Implementation
The strategy-structure relationship
Leadership and strategy implementation
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Case
Tata Motors (B): Integration of Daewoo Commercial Vehicles Company
What did Tata do to implement its acquisition?
How effective was Tata?
Module Summary
Assessment
The best measure of your learning on this module is improved knowledge and
understanding of business strategy and improved performance on your job. Both of
these will surely follow from this module, though it may take some time will before
the latter is recognized and rewarded.
Obviously, it will be useful to provide you with an opportunity to evaluate your
learning in real time. For this purpose, we will adopt the following assessment
scheme:
Class participation: 30%
Individual assignment: 40%
Group integration project: 30%
Class participation will be based on the quality of contributions to the class.
Students may choose not to participate but in this event, they should not expect
any credit for class participation. Repetition, deviation and distraction will not be
rewarded.
The individual assignment is to develop your firm’s strategy. Specifically, you are to
identify your firm’s strategic intent, summarize its 3Cs and PESTER, and provide a
detailed summary of its strategy. This analysis is to be no more than 10 pages long.
This assignment aims to allow you to use strategy frameworks and concepts in a
context you are familiar with, to establish the value of the material discussed in
class. The report is to be submitted within three days of the last session.
The group integration project will be based on groups of no more than 5, with each
group comprising no more than two students of any single nationality. Your task is
to evaluate a strategic issue facing a firm based in Singapore, and to propose a
solution to this issue. Each group will propose their team, the project focus and
issues by session 6. The final project is to be submitted by session 10. This project
provides an opportunity to identify and evaluate a complex strategy problem, to
reinforce key lessons of the module. There are no format, length or presentation
constraints for the integration project. However, standard academic requirements
must be followed. You should also bear in mind that a good report is clear, well
written, comprehensive, concise and interesting, and presents its material to inform
and educate the reader. You should also note that there is a desirable contentlength ratio. More details will be provided later.
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