Academic Year 2015-16
COURSE SYLLABUS
Course Code and Title
STRT 4905 GLOBAL BUSINESS STRATEGY
Level
Credits
Length (in hours)
Course Description
Undergraduate
3
42
Subjects covered: competition, competitive advantage, competitive decision -making, competitive strategy, corporate
strategy, Porter’s Five Forces, strategic planning, strategy
formulation. Examination of managerial decision-making,
planning and policy in changing environments. What is strategy? How to develop a competitive strategy? Historical review of competition and business strategy; analysis of industry structure, competitive positioning, competitive dynamics,
sustainability; impact of globalization on industry structure.
The course will provide the students with the theoretical fundament that is necessary to discuss a series of practical cases (application of the theoretical knowledge).
On successful completion of this course, students will be able
to:
 Understand the role of strategy in business
 Develop an approach to diagnosing strategic issues
 Learn frameworks and concepts that are useful in strategic thinking
 Apply strategic thinking in range of industry and company contexts
 Identify salient strategy issues from messy, real-world
data
 Exchange ideas in substantive debates with your peers
Learning Outcomes
Course Prerequisites
Senior standing
Required
Course Materials
(Textbook, Cases, …)
There is no specific textbook.


Articles:
M. Porter, What is Strategy, HBR Nov./Dec. 1996
M. Porter, The Five Competitive Forces that Shape
Strategy, HBR Jan. 2008 (both articles are downloadable from the internet as pdf-files)
Cases:
Intel Corporation: 1968-1997 (HBS 797-137)
Cola Wars Continue: Coke vs. Pepsi in the 21st.Century
(HBS 702-442)
 Wal-Mart Stores in 2003 (HBS 704-430)
Consult the HBS Reader (=HBSR): Business Fundamen

Additional
1
Academic Year 2015-16
Resources
(recommended books,
articles, websites, ….)
tals "Competitive Strategy", Harvard Business School
Publishing: Number 1520, Boston, Mass. 2002.
"Business Fundamentals" are collections of Harvard Business
School background materials… supplemented by self-study
aids. This collection includes six background notes, two articles from Harvard Business Review, and one article from California Management Review. The collection covers ideas, issues, and best practice principles in the area of competitive
strategy”(the Reader is available at the Library).
Instructor’s name,
highest degree
Instructor Contact
Information
Professor Ingo BÖBEL, Dr., Dr. habil.
- IUM email: ibobel@monaco.edu
- Office number: 204;
- Office hours: Tuesday and Thursday 11-12.30h
- Preferred means of contact: By email
2
Academic Year 2015-16
Attendance Policy
Attendance is compulsory and will be taken at each class. It is
ultimately the student’s responsibility to make sure all of the
work for each course is completed.
Students are expected to attend all examinations, presentations
and in-class exercises.
Missed quizzes, examinations or any in-class exercise will result
in a 0% mark. Make-up examinations will only be permitted in
exceptional cases and with the prior written approval of the
Program Director or the Academic Committee.
At the Undergraduate level, points are subtracted for absences. For more details, please consult the Handbook of Academic Policies and procedures
Class Behavior
Students and the instructor must respect and preserve the integrity of the learning environment of the classroom. Accordingly, disruptive behavior is not permitted, in particular, late arrivals and generally entering or leaving the classroom
without authorization, any use of mobile phones, using
computers for activities other than those of the class are
not permitted. Hats should be taken off in class.
Academic Honesty
IUM views any form of academic dishonesty - cheating and plagiarism - as unacceptable and subject to disciplinary action that
will impact the course grade. Repeated incidents of academic
dishonesty may lead to the student dismissal. For more details,
please consult the Handbook of Academic Policies and procedures.
Grades are given as percentage according to the US grading
system described in the below table:
Grading
Letter
Grade
Percentage
Range
Quality of Work
A
95-100%
A-
90-94%
Outstanding/ excellent performance
B+
87-89%
B
83-86%
B-
80-82%
C+
77-79%
C
73-76%
C-
70-72%
D+
67-69%
D
63-66%
D-
60-62%
3
Good work
Acceptable work
Poor work.
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F
< 60%
4
Fails to meet minimum requirements
Academic Year 2015-16
Course grade
breakdown:
The final course grade is consists of the following components
and relative weight:
Assessment event
Relative
Weight (coefficient)
Attendance
5
Class participation (value added)
35
Projects (2 individual case summaries)
25
Final Exam
35
TOTAL
Assignment Requirements and mode of
submission:
100
The due-dates for the 2 individual case summaries will be announced in class.
Send the 2 individual case summaries as a Word-file
to ibobel@monaco.edu.
Further instructions will be given in class.
Course outline:
Session
number
Date
Topics
planned
covered/
Activity Readings/
due
Assignments
1
Introduction
Get organized.
Discussion of the syllabus and
the literature
"A Note on Microeconomics
for Strategists" (included in
the HBSR)
2-3
Origins of Strategy: Introduction to Competition and Business
Strategy: An Overview and Historical Review
Establish a historical context for
understanding the origins of
strategy: Role of Elite Business
Schools; The Economists' Contribution to Strategy: Industrial
Organization; Industry Analysis;
Dynamics of Competition; The
“Competition and Business
Strategy in Historical Perspective” (included in the
HBSR); D. J. Collis and C.
A. Montgomery: “Competing on Resources: Strategy
in the 1990s”, HBR JulyAugust 1995, Reprint 95403
5
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Evolution of Strategic Management and Strategic Thinking (
see for ex. BCG's influence,
growth-share matrix)
4-6
7-10
What is Strategy?
Today's dynamic markets and
technologies have called into
question the sustainability of
competitive advantage. Under
pressure to improve productivity,
quality, and speed, managers
have embraced a number of
tools. Dramatic operational improvements have resulted, but
rarely have these gains translated into sustainable profitability.
And gradually, the tools have
taken the place of strategy. As
managers push to improve on all
fronts, they move further away
from viable competitive positions. Porter argues that operational effectiveness, although
necessary to superior performance, is not sufficient, because
its techniques are easy to imitate. In contrast, the essence of
strategy is choosing a unique
and valuable position rooted in
systems of activities that are
much more difficult to match.
M. E. Porter : "What is
Strategy?” (download the
article from the course website)
Competitive Strategy on the
Corporate Level
Prepare case:
Intel Corporation: 19681997 (HBS 797-137)
Write a case analysis for
Intel Corporation 19681997
(summarize the case in 2
pages max.)
Preparation for the First Case
Discussion: Intel Corporation
1968-1997
Remarks on the development
and history of the computer industry and internet economy
We then start with the discussion
of the Intel case. The case describes three stages in Intel's
history: the initial success and
then collapse in DRAMs and
6
"The Five Competitive Forces that Shape Strategy,” by
M. E. Porter
Academic Year 2015-16
EPROMs, its transition to and
dominance in microprocessors,
and its move to become the
main supplier of the building
blocks for the Internet economy.
It allows a rich discussion of
industry structure and transformation in DRAMs and microprocessors, creation of competitive
advantage and value capture, as
well as sustainability.
Teaching Purpose: Intel's Internet strategy can be used to
introduce basic ideas on corporate strategy and industry analysis and transformation, competitive strategy, and competitive
dynamics.
We continue with the discussion
of the Intel case. How did Intel
succeed in creating a competitive advantage in Microprocessors?
Creating Competitive Advantage
What is competitive advantage?
11-15
Prepare case:
Intel Corporation 19681997
Competitive Advantage and Location: Defending Competitive
Advantage against Competitors
and Sustaining Competitive Advantage - Threats to Sustainability (Imitation, Substitution)
Does location matter?
Summary of lessons learned.
Prepare case:
Intel Corporation 19681997
Second Case Discussion: WalMart Stores in 2003 (HBS 704430) (I)
The case focuses on the evolution of Wal-Mart's remarkably
successful discount operations
and describes the company's
more recent attempts to diversify into other businesses. The
company has entered the warehouse club industry with its
Sam's Clubs and the grocery
business with its Supercenters, a
combination supermarket and
Prepare case
Wal-Mart Stores in 2003
(HBS 704-430)and write a
case analysis (summarize
the case in 2 pages)
7
Article "Sustaining Superior
Performance" (included in
the HBSR).
Article “Creating Competitive Advantage” (included in
the HBSR)
Academic Year 2015-16
discount store.
Teaching Purpose: Explores
the issue of sustaining competitive advantage. Wal-Mart has
advantages over its competitors
in areas such as distribution, information technology, and merchandising, to name a few. How
sustainable are these, and what
are the threats to Wal-Mart's
continued success?
Wal-Mart Stores in 2003 (HBS
704-430) (II) Continued
In its first quarter of 2002, WalMart became the largest company on the globe (by sales) and
expanded into Japan. Was the
giant retailer unstoppable? This
case explores Wal-Mart's top issues in fueling top- and bottomline growth: diversification into
groceries, new retail channels
such as the Neighborhood Markets, and continued international
expansion.
Teaching Purpose: Explores
the issue of sustaining competitive advantage. Wal-Mart has
advantages over its competitors
in areas such as distribution, information technology, and merchandising, to name a few. How
sustainable are these, and what
are the threats to Wal-Mart's
continued success?
16-18
Industry Analysis
How competitive forces shape
strategy
Extensive discussion of Porter's
Five Forces Framework: Industry
Forces Driving Profits Down
Degree of Rivalry (The cases of
perfect competition and monopolistic competition revisited)
"The Five Competitive Forces
that Shape Strategy,” by M. E.
Porter
8
Article "How competitive
forces shape strategy" (included in the HBSR).
Article “Strategies to Lure
Investors”, R. Whittington,
in: Financial Times: Mastering Management Series Nr.
4, October 2000 (article is
downloadable from EBSCO)
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19-22
Case Discussion:
Cola Wars Continue: Coke vs.
Pepsi in the Twenty-First
Century (702442)
Examines the industry structure
and competitive strategy of Coke
and Pepsi over 100 years of rivalry. New challenges of the
twenty-first century included
boosting flagging domestic cola
sales and finding new revenue
streams. Both firms also began
to modify their bottling, pricing,
and brand strategies. They
looked to emerging international
markets to fuel growth and
broaden their brand portfolios to
include noncarbonated beverages like tea, juice, sports drinks,
and bottled water. For over a
century, Coca-Cola and PepsiCola had vied for the "throat
share" of the world's beverage
market. The most intense battles
of the cola wars were fought
over the $60 billion industry in
the United States, where the average American consumes 53
gallons of carbonated soft drinks
(CSD) per year. In a "carefully
waged competitive struggle,"
from 1975 to 1995 both Coke
and Pepsi had achieved average
annual growth of around 10% as
both U.S. and worldwide CSD
consumption consistently rose.
This cozy situation was threatened in the late 1990s, however,
when U.S. CSD consumption
dropped for two consecutive
years and worldwide shipments
slowed for both Coke and Pepsi.
The case considers whether
Coke's and Pepsi's era of sustained growth and profitability
was coming to a close or wheth9
Prepare case Cola Wars
Continue: Coke vs. Pepsi
in the Twenty-First Century”
Write a case analysis of
Case “Cola Wars Continue: Coke vs. Pepsi in the
Twenty-First Century”
(702442)
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23-26
er this apparent slowdown was
just another blip in the course of
a century of enviable performance.
Teaching Purpose: Industry
and competitor analysis.
Case Discussion of Cola Wars
Continue: Coke vs. Pepsi in
the Twenty-First Century
(702442)
........Continued
Corporate Role in Business
Strategy
The Concept of “Shared Value“
Corporate Role in Business
Strategy
The Concept of “Shared Value“
Corporate Role in Business
Strategy
The Concept of “Shared Value“
Revision
3 hour - Final Exam (exact
date TBA)
Syllabus latest updated on:
10
Prepare case Cola Wars
Continue: Coke vs. Pepsi
in the Twenty-First Century”
Porter and Kramer, Creating
Shared Value, HBR 2011
Porter and Kramer, Creating
Shared Value, HBR 2011
Porter and Kramer, Creating
Shared Value, HBR 2011
Read through lecture
notes and relevant material