UNDERGRADUATE COURSE SYLLABUS
Course Title
and Number:
Credit Hours:
STRT 4905 GLOBAL BUSINESS STRATEGY
Name of
Professor:
Ingo BÖBEL, Dr., Dr. habil.
Affiliated with the MOC Teaching Network, Professor Michael E. Porter,
Harvard Business School
Homepage: http://ibobel.pbworks.com
ibobel@monaco.edu
Office hours: Thursday 12.00 to 14.00
Office: Room 304
Winter 2011
Contact Details:
Term:
Class Meeting
Times:
Prerequisites:
Course
Description:
3
Thursday from 14.00 to 15.40 and 16.00 to 17.40 (Room B1)
Senior standing
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 first part of the course is used to
provide the students with the necessary theoretical fundament while the
second part of the course focuses on the discussion of practical cases
(application of the theoretical knowledge).
Course Learning Outcomes:
Assessment tools:
Link to BSBA program
learning outcomes:
This course aspires to expose
Quizzes, exams, written
1. (functional knowledge)
the student to the role of being a assignment, in class
2. (written communication)
member of a management team discussions.
4. (problem solving and
which is responsible for
critical thinking)
managing the short and long
5. (cultural diversity)
term success of the entire
6. (ethical considerations)
organization. In this case one
7. (independent research)
has to face a number of
8. (understand business
questions: Which industries and
environment)
markets should you enter?
Which products should you
invest in? Which segments
should you target? How to
create a competitive advantage
over your rivals?
The specific objectives are as
follows:
 To expose the student to the
concepts of modern strategic
thinking, planning and
strategy development.
 To enlighten the student in
developing “general
management” skills.
 To develop analytical skills
required in developing
Business Strategies.
 To develop the knowledge
and skills required to
implement strategies.
To equip the student with the
tools necessary to develop
strategies in all aspects of their
professional and personal lives.
 Participate
in Oral participation, in class
discussions, in class, and discussions.
develop their own point
of view and critical
thinking process.
Methodology:
Course
Materials:
1. (demonstrate knowledge)
2. (oral communication)
3.(technology)
4. (problem solving)
8. (understand business
environment)
Class time will consist of lectures, case studies, and discussions. Students
will have to complete the following assignments each week:
 Read the corresponding assignments before class.
 Read all selected readings, articles, cases and handouts given.
 Solve the problems assigned.
You will receive handouts and readings related to the course or be asked to
search in EBSCO for appropriate articles. Ms. Susan Eklow, IUM Librarian,
will also assist you in finding the relevant sources and data banks (and on
how to use EBSCO!!). I expect that students will actively use the library and
the library resources that are available when solving homework problems or
any other assignments.
You are expected to prepare adequately for each class and to participate
actively and frequently in class discussion. Participation requires you
publicly in class to respond fully to questions and comments from the
professor and from fellow students, and to offer spontaneously your own
thoughts and opinions on the material. You are expected to bring to and to
demonstrate in each class sufficient preparation, intellectual curiosity,
competence to engage in a high level of disciplined analytical thought and
discussion, and written and oral English-language communication skills.
1. There is no Textbook
It is highly recommended to consult the HBS Reader (=HBSR):
Business Fundamentals "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
Assessment and
Grading:
Class Code of
Conduct:
Attendance
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”.
2. Additional recommended articles:
R. Whittington, Strategies to Lure Investors, Financial Times: Mastering
Management Series Nr. 4, October 2000
D. J. Collis and C. A. Montgomery: Competing on Resources:
Strategy in the 1990s, HBR July-August 1995, Reprint 95403
Wharton School Publ., Interview with L. Hrebiniak
http://knowledge.wharton.upenn.edu/index.cfm?fa=viewArticle&ID=1173
Additional readings will be handed out during class sessions.
3. Cases: These are the cases you must prepare in accordance with the
Professor’s instructions:
 Intel Corporation: 1968-2003 (HBS 703427)
 Cola Wars Continue: Coke vs. Pepsi in the 21st.Century (HBS
702442)
 Wal-Mart Stores, Inc. (HBS 794-024)
 Wal-Mart in 2002 (HBS 702466)
 Crown Cork & Seal in 1989 (HBS 793-035)
The final course grade will be composed of the following components with
given weights: (divide up accordingly)
Class participation (value added)
35%
Projects (individual case summaries)
20%
Quiz
10%
Final Exam
35%
All grades (homework, participation, quizzes, exam, project, etc.) are given
over 100 points using the following grading system: A (95 – 100), A- (90 –
94), 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), F (0 - 59). Student grades are
made available the week following final exams. The final grades are posted
with the student number. The breakdown of the final grades is available in
the Director of Undergraduate Programs’ office.
E.g. Students and the instructor must show each other adequate personal
respect at all times. Students and the instructor must also respect and
preserve the integrity of the learning environment of the classroom.
Accordingly, disruptive behavior is not permitted. Examples of disruption
are the sound or any use of cell phones, abruptly entering or leaving the
room without explanation, using computers for activities other than those of
the course.
Students are expected to attend all classes!
Absences affect the final course grade.
- 0 absence = 1 bonus point
- Up to 2 (two) absences no penalty is given
- For the 3rd (third) absence 3 points are subtracted from the final course
grade (given over 100 points) and the student will receive a warning
by e-mail
- For the 4th (fourth) absence 7 more points are subtracted from the final
course grade (given over 100 points) and the student will receive a
warning by e-mail
-
Reference
Materials:
Academic
Honesty:
For the 5th (fifth) absence the student is automatically withdrawn from
the class and receives a WF grade
M. E. Porter, Competitive Strategy: Techniques for Analyzing Industries
and Competitors, , The Free Press, New York 1998
M. E. Porter: From Competitive Advantage to Corporate Strategy, HBR
May-June 1987 (Reprint 87307)
Articles are available through EBSCO.
You will find that your understanding of both current economic events and
economic analysis will be bolstered by the regular persual of periodicals
such as The Economist, The Wall Street Journal, The Financial Times, and
Business Week.
By the first class, you are expected to already know well the IUM policy on
academic honesty found in the current Student Catalogue. The instructor
strictly enforces this policy, especially regarding academic cheating and
plagiarism.
Course Outline
BUMA 4005 GLOBAL BUSINESS STRATEGY
Sessions
1
20.1.
1
20.1.
2
20.1.
3 and 4
3.2.
TOPICS/Teaching Purpose
Introduction
Get organized.
Discussion of the syllabus and the literature
Homework/ Recommended
readings before class
"A Note on Microeconomics
for Strategists" (included in the
HBSR)
Relevant chapters in M. Parkin
“Microeconomics”, 7th ed.
2004 (or any other modern
economics textbook)
“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 July-August
1995, Reprint 95403
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 Evolution of Strategic
Management and Strategic Thinking ( see for ex.
BCG's influence, growth-share matrix)
Article by M. E. Porter : "What
What is Strategy?
Today's dynamic markets and technologies have
is Strategy?" (included in the
called into question the sustainability of competitive
HBSR)
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.
Make-Up Class for Jan. 27 TBD
First Case Discussion: Intel Corporation 1968-2003
The case describes three stages in Intel's history: the
initial success and then collapse in DRAMs and
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
Prepare case:
Intel Corporation 1968-2003
Write a case analysis for
Intel Corporation 1968-2003
(summarize the case in 2 pages
max.)
Sessions
5
10.2.
6
10.2.
7
17.2.
8
TOPICS/Teaching Purpose
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.
Competitive Advantage
Creating Competitive Advantage
What is competitive advantage?
Capabilities vs. resources
Competitive positioning with customers
Generic strategies
Value drivers, cost drivers
Defending Competitive Advantage against
Competitors and Sustaining Competitive Advantage
Threats to Sustainability (Imitation, Substitution)
Preventing the Imitation of Resources and
Capabilities
Second Case Discussion: Wal-Mart Stores, Inc.
(HBS 794-024) (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 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?
Second Case Discussion: Wal-Mart Stores, Inc.
(HBS 794-024) (II) Continued
17.2.
Homework/ Recommended
readings before class
Article “Creating Competitive
Advantage” (included in the
HBSR)
M. Porter, Competitive
Strategy, ch. 1
Article "Sustaining Superior
Performance" (included in the
HBSR).
Prepare case
Wal-Mart Stores, Inc. (HBS
794-024) and write a case
analysis (summarize the case in
2 pages)
Article “Creating Competitive
Advantage” (included in the
HBSR)
Prepare case Wal-Mart in
2002 (702466)
Write a case analysis of Case
3: Wal-Mart in 2002
(summarize this short case in 2
pages max.)
Midterm Break 19.2. – 27.2.
9
3.3.
Third Case Discussion: Wal-Mart in 2002
(702466)
In its first quarter of 2002, Wal-Mart 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 bottom-line growth:
Prepare case Wal-Mart in
2002 (702466)
Sessions
10
3.3.
11
10.3.
12
10.3.
TOPICS/Teaching Purpose
diversification into groceries, new retail channels
such as the Neighborhood Markets, and continued
international expansion.
Industry Analysis (I)
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)
Buyer Power and its Determinants
Industry Analysis (II)
Supplier Power and its Determinants
Entrants and Barriers to Entry
Substitutes
Industry Forces Increasing Profits: Coordination
among Competitors
Strategic Groups
Fourth 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 Pepsi-Cola 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 whether this apparent slowdown was
just another blip in the course of a century of
Homework/ Recommended
readings before class
Article "How competitive
forces shape strategy"
(included in the HBSR).
M. E. Porter, "Competitive
Strategy", Introduction and ch.
1, 2 and 3.
Article “Strategies to Lure
Investors”, R. Whittington, in:
Financial Times: Mastering
Management Series Nr. 4,
October 2000 (article is
downloadable from EBSCO)
Prepare case Cola Wars
Continue: Coke vs. Pepsi in
the Twenty-First Century”
Write a case analysis of Case 4
“Cola Wars Continue: Coke
vs. Pepsi in the Twenty-First
Century” (702442)
Sessions
13
17.3.
14
24.3.
16
24.3.
17
TOPICS/Teaching Purpose
enviable performance.
Teaching Purpose: Industry and competitor
analysis.
Short Quiz
Fourth Case Discussion:
Cola Wars Continue: Coke vs. Pepsi in the
Twenty-First Century (702442)
Continued
Fifth case Discussion:
"Crown Cork & Seal in 1989" (HBS 793-035)
The case describes the structure and recent trends of
the metal container industry, Crown's successful
strategy for competing in the industry, and John
Connelly's leadership over more than 20 years. In
1989, William Avery succeeded Connelly as CEO
and is forced to consider new strategic options in the
face of industry change.
Teaching Purpose: Allows for a structural analysis
(five forces) of the industry, identification and
evaluation of a classic focused strategy, and a
critique of proposed new strategic directions.
Fifth case Discussion:
"Crown Cork & Seal in 1989" (HBS 793-035)
Continued
Review for Final Exam
Final Exam Week
Homework/ Recommended
readings before class
Prepare case 5
"Crown Cork & Seal in
1989" (HBS 793-035)
Write a case analysis of Case
5"Crown Cork & Seal in
1989" (HBS 793-035)
Prepare case 5
"Crown Cork & Seal in
1989" (HBS 793-035)
Read through lecture notes
and relevant material
28.3.-1.4.
Please note that the professor reserves the right to modify this outline and will inform you of any
modifications to be made.
Revision Date: January 2011