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BUAD497 – Strategic Management
Syllabus – Fall 2013
MW - 10 to 11:50 a.m.
MW – 12-1:50
Professor:
Office:
Trudi Ferguson
Bridge 301
Office Phone: 213-740-5871
Cell Phone: 818 653-4407 (best number)
Office Hours: M 2 – 3 p.m. and by appointment
E-mail: tferguso@marshall.usc.edu
Course Description
This course introduces the concepts, tools, and first principles of strategy formulation and competitive analysis. It is concerned with managerial decisions and
actions that materially affect the success and survival of business enterprises. The course focuses on the information, analyses, organizational processes, skills,
and business judgment managers must use to design strategies, position their businesses and assets, and define firm boundaries, to maximize long-term profits in
the face of uncertainty and competition.
Strategic Management (BUAD 497) is an integrative and interdisciplinary course in two important respects:
1. The course assumes a broad view of the environment that includes buyers/consumers, suppliers, technology, economics, capital markets, competitors,
government, and global forces. It assumes that the external environment is dynamic and characterized by uncertain changes. In studying strategy, this
course draws together and builds on all the ideas, concepts, and theories from your functional courses such as Accounting, Economics, Finance,
Marketing, Organizational Behavior, and Statistics. However, it is much more than a mere integration of the functional specialties within a firm.
2. The course takes a general management perspective. It views the firm as a whole, and examines how policies in each functional area are integrated
into an overall competitive strategy. We designed this course to develop the “general management point of view” among participants. This point of
view is the best vantage point for making decisions that affect long run business performance. The key strategic business decisions of concern in this
course involve determining and shaping organizational purpose to evolving opportunities, creating competitive advantages, choosing competitive
strategies, securing and defending sustainable market positions, and allocating critical resources over long periods. Decisions such as these can only be
made effectively by viewing a firm holistically, and over the long term.
This course is intended to help you develop skills for formulating strategy. These skills will help you in whatever job you take after graduation as well
as in your personal investing and choice of employment. The strategy formulation process demands the mastery of a body of analytical tools and the ability to
take an integrative point of view. You will develop these skills through:

In-depth analysis of industries and competitors
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

Prediction of competitive behavior
Techniques for analyzing how firms can develop and sustain competitive advantages over time
NOTE: BUAD 497 is a core course taught by several instructors. Policies regarding assignments and grading may vary slightly
for each instructor. Be sure to refer ONLY to this syllabus.
Learning Objectives
The course is composed of four interrelated modules that build on each other. The learning objectives associated with each module are intended
to enable you to: (1) develop cognitive understanding of terminology and relationships the purpose of which are to help you develop factual and
conceptual knowledge about the field of strategic management, (2) skill in being able to perform specific forms of analysis the purpose of which is
to help you develop procedural knowledge specific to the field of strategic management and metacognitive knowledge in how to go about solving
problems in strategic management, and (3) critical thinking in evaluating the empirical evidence that exists currently concerning the use and misuse of the concepts and analyses covered the purpose of which is to help you develop knowledge in gathering, categorizing, analyzing,
interpreting, and evaluating information. All of the graded elements of this course are based on assessing your ability to demonstrate specific
knowledge in these areas.
Module I (Industry & Competitor Analysis-ICA)
1. Be able to distinguish industries from markets and to identify industry conditions most appropriate for using the ICA framework, be able
to identify the sources for bargaining power among rivals and buyers, suppliers, and the relationships between bargaining power among
rivals/buyers/suppliers as well as substitutes and barriers to entry. Be able to identify competitive groups within industries as well as
generic competitive strategies.
2. Be able to analyze appropriate industry situations as a new entrant or incumbent where ICA is more or less appropriate.
3. Be able to use the ICA analysis to predict likely direction for future competitive moves by rivals.
4. Be able to identify the problems and opportunities from the empirical research literature with using the ICA
Module II (Resource-Based View of the Firm-RBV)
1. Be able to identify resources from capabilities and competencies. Be able to identify the causes of sustainable competitive advantage. Be
able to identify how core capabilities can become core rigidities.
2. Be able to identify and recommend alternative courses of action for capabilities NOT becoming rigidities.
3. Be able to use the resource based view of the firm to diagnose problems with firm competitive advantage and recommend alternative
courses of action for correction.
4. Be able to conduct a "stake-holder" analysis.
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5. Be able to recommend alternative courses of action for creating dynamic capabilities.
6. Be able to identify the problems and opportunities identified to date from the empirical research literature with using the resource based
view of the firm.
Module III (Competitive Dynamics)
1. Be able to identify dynamics in competitive rivalry including competitive action and response, first-mover advantage, co-opetition,
multipoint competition, winner take all, and envelopment in technology-based industries.
2. Be able to develop a business model to diagnose the industry dynamics.
3. Be able to analyze underlying dynamics co-opetition strategies and make appropriate recommendations for acting both proactively and
defensively.
4. Be able to analyze underlying dynamics of winner take all situations and make appropriate recommendations for acting both proactively
and defensively.
5. Be able to analyze underlying dynamics of envelopment and make appropriate recommendations for acting both proactively and
defensively.
6. Be able to identify the current state of empirical knowledge on how firms interact competitively.
Module IV (Corporate Strategy – (1) International, (2) Resource Allocation, (3) Transaction Costs Economics-TCE)
1. Be able to identify why firms expand internationally and the forms of strategies they use.
2. Be able to analyze international rivalry and recommend alternative strategies for both initiation and defense.
3. Be able to identify how firms allocate resources among related and unrelated businesses and how these processes can enhance or destroy
synergy.
4. Be able to use the experience curve to estimate cost advantages, the growth-share matrix, and the industry-attractiveness/business
strength matrices to recommend resource allocation across a firm's portfolio of businesses.
5. Be able to explain the different assumptions as well as the pros and cons of alternative approaches for corporate resource allocation.
6. Be able to identify why firms change their boundaries such as diversification, mergers and acquisitions, divestiture, and alliances.
7. Be able to use the TCE approach to recommend strategies for vertical and horizontal changes in the boundary of the firm.
Additionally this course should develop your analytical skills in rhetoric, analysis of appropriate theories to the data, teach the strategic
vocabulary, expand your global mindset, stress ethical approaches.
COURSE FORMAT AND THE CASE DISCUSSION METHOD
In order to achieve the objectives of the course, we will devote the majority of our class time to the analysis and discussion of selected management,
competitive strategy, and business policy cases. Occasional lectures will be given to emphasize relevant vocabulary and to elaborate on key theoretical models
and frameworks or to reinforce crucial concepts. These lectures, however, will be subordinate to the case analysis. Cases provide a natural "test-bed" for theory
and provide vivid examples that aid memory of concepts. You will have the opportunity to apply these theories to class cases and try out some of your own
applications of materials to particulars of each case. While nothing can surpass first hand personal industry and managerial experience as a basis for analysis and
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decision-making, case analysis is an indispensable proxy for the kind of knowledge that can only be gained through years of experience and research. A mix of
old and new business cases has been selected on a range of companies from a variety of industry settings. Each case is intended to teach us something specific,
yet each can teach many things. Older cases are used to emphasize particular learning objectives. We will not attempt to exhaust each case of all its learning
experiences, but rather build up a "war chest" of analytical tools, skills and insights, progressively over all the selected cases.
There are other reasons for employing the case discussion method of instruction. First, it allows you to develop skills at problem definition in addition
to problem solving. Cases typically do not have an obvious set of tasks whose performance will lead to mastery. Rather, they force you to sift through a mass of
information, some of it irrelevant or contradictory, in order to identify the important or strategic issues. Second, the case method gives you a chance to deal with
ambiguity. Most cases do not have obvious "right" answers. Managers must be able to function in situations where the right answer is not known, without
falling into the trap of assuming that any answer is as good as another. Some analyses and proposed strategies are clearly wrong, and some are clearly better than
others are. A popular phrase in case analysis classes is "There are no right answers, but there are wrong answers." In many instances it will be up to you
creatively and individually to reflect on appropriate applications of theories to each case. Case discussion techniques provide a chance to learn the meaning of
analytical rigor in situations other than open-and-shut problems.
These rationales are offered because the case method is unfamiliar to most of you and frequently cause initial confusion. There will be many times
when I will not reveal my own opinions about a particular issue, and there will be many cases that do not end up neatly packaged with an "answer." You may
discover that your preparation "misses" key points of a case, especially at first. This is a normal part of the learning experience.
While we will direct class discussions, the quality of your learning experience will be directly determined by: (1) your degree of preparation, active
listening, and participation, and (2) your classmates' preparation, listening, and participation. Some will not agree with you, and you may be asked to defend
your argument or change your mind. So long as criticism is directed at arguments and not at individuals, is relevant to the issues at hand and coherently argued,
it is very much welcomed.
Case Preparation. There are two types of cases: video and written. Both forms provide you with information essential for subsequent discussion and debate but
do so with different methods and constraints.
1.
The video cases are only shown at the beginning of class. Their purpose is to: (1) provide a realistic setting in which to observe strategy in action, (2)
provide visual impact leading to greater understanding, and (3) reduce your costs of purchasing written cases. The video cases will require you to be
able to put your understanding of relationships and issues into use in near “real time” a situation closer to that experienced by managers in high velocity
environments. Your observational skills, short-term memory, insights, and judgments will be tested within a much faster time interval than in written
cases where you will have time to read, contemplate, and discuss issues raised outside of class. However, because video cases are only shown at the
start of the session and are not available outside of class, your prompt attendance is critical. You should arrange your schedule so that you arrive on
time, not only to understand the visual material but also not to interrupt the viewing and understanding of others. There is no assignment due on the
days of video cases.
2.
The second type of case is a written case and differs from the video case in that it requires careful preparation before class. The written case gives you
time to think more deeply and to conduct more thorough analyses than the video case and hence I expect that the discussions and analyses will be more
extensive. However, both the written and video cases require active in-class participation to ensure the class' success. Written case preparation should
include:
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a.
b.
c.
d.
e.
f.
g.
h.
i.
Rapidly read the assigned case and other materials to gain a general understanding of the industry, the firm, and the general competitive
situation and issues.
Carefully review the discussion questions provided in Blackboard for the session for clues as to what issues require special attention.
Carefully re-read the case, taking notes that sort information, facts, and observations under a number of relevant headings. Use the discussion
questions to guide your own thinking about the issues.
Formulate theories or hypotheses about what is going on as you read ("the company loses money on small orders"), modifying or rejecting
them as new information surfaces ("Table 2 shows that shipping costs per unit are higher for small orders, but only for long-distance
shipments").
Perform quantitative analyses; “crunching” whatever numbers are available. It is also very important to provide quantitative support wherever
possible, particularly when exploring various hypotheses as to the nature and importance of certain phenomena. (If the requisite data are not
available in the case, precise descriptions of what data are missing often triggers ideas for making creative use of the information that are
available.) It is usually worthwhile to identify trends in the firm or industry, preferably with a quantitative measurement. Some of these trends,
often very important ones, will not be flagged in the text of the case.
Prepare definitive conclusions before you come to class concerning the issues raised in the discussion questions.
Also, try and anticipate the sequence of likely events and both their first and second level outcomes so that you can both see what is likely to
happen and how your recommendations may change them.
You may want to Google the company to discover any interesting updates.
Bring your detailed notes with you to class to help guide your interventions in class discussions.
You are strongly encouraged to form study groups that regularly meet to share insights and ideas about the assigned cases. While this is voluntary,
experience shows that satisfactory performance in this course, and a good grade, depend on it.
WARNING! There is a good chance that you will feel a bit confused or overwhelmed during the first module, or two, of the course. This is a
byproduct of the peculiar structure of the strategy course that does not build up linearly by successively adding components of knowledge week by week. Rather,
every case in a sense contains all the material in the entire course. Furthermore, the early theoretical concepts probably will not have much meaning for you until
you have worked through a few cases. As a result, there is no logical way to begin except by immersion.
Required Materials
Case Package:
The assigned cases and outside readings for this course are available from the University Book Store.
Blackboard (Bb): I use Bb as my primary method of communicating with you. In addition to direct communications you will also find additional materials
posted to Bb including any syllabus updates, an session overviews including your required preparation and posted discussion questions
which you should prepare for, required and supplemental reading, as well as news posts. Notes from the cases and readings will be posted in
bb AFTER our class discussions. You should check Bb for any new information posted relevant to upcoming sessions.
You can access Blackboard either by going to http://totale.usc.edu/webapps/portal/frameset.jsp or by going through the “My Marshall” portal
http://mymarshall.usc.edu. You will need your UNIX password for either site.
IMPORTANT:
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Since e-mails that I send to the class originate from the Blackboard system, it is your responsibility for the accuracy of your e-mail address to
Blackboard by insuring that your Blackboard account settings forward your messages to your preferred internet provider (IP) account such as your
correct USC e-mail address, AOL, G-Mail, Hotlink, etc. Note my direct email does NOT have an ‘n’ letter on the end of my name.
Text:
Grant, Robert M. and Judith Jordan. 2012. Foundations of Strategy. NY: John Wiley &Sons, Ltd. This text is available through the
bookstore, on-line (e.g., Amazon), or in e-format (www.wiley.com).
Prerequisites and/or Recommended Preparation:


Prerequisite: 1 from (BUAD 250b or BUAD 281 or BUAD 305) and (BUAD 304 and BUAD 307) and 1 from (BUAD 215 or BUAD 306) and 1 from
(BUAD 302 or BUAD 302t)
Corequisite: 1 from (BUAD 311 or BUAD 311t)
Course Evaluation
Participation. Case courses, unlike lecture courses, depend for their success on student commitment, participation, and engagement in discussing the
issues presented in the cases by collectively analyzing the case issues, recommending solutions, and evaluating alternative ways of implementing them.
Therefore, your participation in the analysis is critically important for others as well as your learning! In grading class commitment and participation, I
will consider both the quantity and quality of your class contributions. Quantity is not sufficient. Your verbal participation in case discussion will be closely
monitored. Participation will be based on oral questions, discussion, and engaged appropriate contributions, quality of written work, and your individual
contribution to your group work based on my assessment along with peer reviews. Appendix C shows the behaviors associated with the different possible scores.
Class participation is obviously a function of your preparation, skills, attitude, and willingness to commit actively in front of colleagues and me. A classroom is a
cost-free environment for experimenting and learning. This is an excellent opportunity to practice. I encourage all students to contribute to the class discussion,
to test your ideas, and respond to others based on your preparation and insights. This part of your educational experience offers the opportunity to dialogue with
your bright classmates. Class attendance is ABSOLUTELY essential. Habitual lateness (and leaving class early), for whatever reason, will be noted as
evidence of low course commitment. Attendance is a central part of the learning and the grade. All missed classes result in a loss in class contribution and
participation. I take attendance. The policy on missed classes is to allow each student two (2) absences, no questions asked, no penalty. All further absences over
the limit will reduce the student's participation grade, no questions asked, no excuses of any kind accepted. Students with an excessive number of absences are
at risk of failing the course. Only Official University engagements, such as scheduled debating events, sports events, are accepted as exceptions to this policy.
Job interviews, etc., are not excused, so choose your absences carefully. Sick days and religious holidays should be figured into the two allowed absences.
With regard to quality, the dimensions include:
Relevance -- does the comment bear on the subject at hand? Comments that do not link up with what the discussion is focusing on can actually detract from
the learning experience.
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Causal Linkage -- are the logical antecedents or consequences of a particular argument traced out? Comments that push the implications of a fact or idea as
far as possible are generally superior.
Responsiveness -- does the comment react in an important way to what someone else has said? Analysis -- is the reasoning employed consistent and logical?
Evidence -- have data from the case, assigned readings, from personal experience, from general knowledge been employed to support the assertions made?
Importance -- does the contribution further our understanding of the issues at hand? Is a connection made with other cases we have analyzed?
Clarity -- is the comment succinct and understandable? Does it stick to the subject or does it wander?
Creativity—did the student test new ideas, thinking out of the box.
I expect that you will make brief notes or outlines -- identify critical problems, "crank-all-the-numbers," do the financials, generate alternative
recommended courses of action, and generate ideas for their implementation. BE sure to study the exhibits and draw inferences from this data for each
case.
I will call on students at random, to take the lead in various aspects of class discussions during the semester. If you are not present, are late, or are not
sufficiently prepared to make a substantial contribution to the class discussion, you will be docked for class contribution. If you make helpful comments, you
will be advantaged for class contribution. There are limited opportunities to call on each of you so be warned that failure to be thoroughly prepared, on all
occasions, can be devastating to your overall grade. Attempts to dominate class discussion rarely result in consistent and significant contributions. Your final
participation grade is based on the quality of your participation. All students will be called upon so be ready.
Research Participation: Participation also comprises involvement in research activities.
The University of Southern California, of which you are a member, is one of the world’s leading research universities. The Marshall School of Business is also a
leading center of research within its scholarly domain including strategic management, organizational behavior, marketing, finance, accounting, and information
and operations management. This recognition by the outside community enhances the value of your degree to employers as well as to other educational
institutions to which you may subsequent apply for further education. Research universities are distinguished by not just educating students in past knowledge
but also by being the primary engine that creates new knowledge for the advancement of society. Research within the Marshall School takes several forms from
for example, historical analysis of published records, participant observation and in-depth interviews, surveys of current business practices, to laboratory
research. You have an obligation as a student member of the University’s scholarly community to contribute to the research mission because you personally
benefit from the results of this research in your education by learning the latest information from leading research scholars in their field and the reputation by
association you enjoy now as a student and in the future as a graduate. The stronger this reputation becomes over time, the more you personally benefit long
after your days as a student. Therefore, there is a mandatory research requirement as part of your education in the Marshall School in this course. You can
choose one of two options to fulfill this requirement. Please note that, if you do not complete one of these two options, you will lose the points for this part of
your grade.
Option 1:
First, you can participate in research studies. To do this, you will attend sessions outside of class, conducted by researchers in MOR at Marshall. You will earn ½
credit or 1 credit for each separate study you complete; most sessions are no more than an hour long. You will need to obtain 4 credits during the semester in order
to fulfill the research requirement. If you choose this option, please register for an account at http://marshall-mor.sona-systems.com/ (see instructions posted
separately to Blackboard) no later than Friday, September 13, 2013. Those who do not register or reactivate by this date will be required to complete Option
2. After you verify your account, you will need to check the site regularly to find open studies and sign yourself up for appointments. Studies are scheduled
throughout the semester, on various days and times. It’s important that you complete your credit early; if you wait until the end of the semester, there may not be
enough studies available. You are not guaranteed an available study spot. Please note: If you earn your first 3 credits by showing up to ALL of your scheduled
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sessions, on time, then you will earn your 4th credit “free,” as a bonus. That is, the system is “earn three, get one free”-- again, provided that you show up to all
three early sessions as scheduled and on time. To receive full participation points, you must earn your first credit by Friday, October 25, 2013. Your other credits
can be earned any time before Friday, December 6, 2013. As a courtesy to the researcher and other students waiting for spots, please use the online system to cancel
your appointment ASAP if you can’t make it. Failure to cancel appointments will result in reduction of earned credits.
Option 2:
Your second way to complete the research requirement is to write 3 short, 3-page research papers on topics prearranged with your discussion instructor or 497
professor. Students must be aged 18 or older by Friday, October 25, 2013 in order to choose Option 1; otherwise, you will need to use Option 2. Papers must be
turned in no later than Friday, December 6, 2013 to your Professor or discussion instructor.
IMPORTANT NOTES: (A) If you have already have a research study account from a past BUAD 304 or BUAD 497 course, you will need to email the
administrator from the website in order to request account reactivation. Past credits earned CANNOT be used for current courses. (B) If you are enrolled for
Marketing BUAD 307, please make sure you visit the Marketing research study website your Marketing Professor has given you. Please see your Marketing
syllabus. Each course has its own unique Sona Systems web address. Credits will NOT transfer from one class to the other for credit fulfillment, no exceptions.
Familiarity with Current Event Business News. The theories and cases we are discussing in class have daily manifestations in the current world of business.
An important part of your education is familiarity with current business environments and changes. During the course of this semester you should keep abreast
of business headlines and be up to date on important stories. In particular you should track developments in businesses (cases) we have studied. Looking at the
L.A. Times business headlines daily (or your favorite news sources) should keep you current. I will include one or two questions on the quizzes concerning the
most important business developments.
Individual Quizzes. There will be four quizzes during the course to test your level of understanding of the previous material covered. Quizzes are not
cumulative. Quizzes will be multiple choice and/or short answer questions taken from the assigned material (e.g., readings, text, articles posted in Bb, current
events discussed in class, related to topics or cases covered, and lecture/discussions). There will be two scheduled on 9/11 and 11/13, and two unscheduled
quizzes. No make-up opportunities are available if you are absent or late (unless for pre-authorized University activity or legitimate excuse such as illness.)
Individual Mid-Term. There will be one mid-term exam on Wednesday of the 6th week (Oct. 2) covering the first two modules: ICA and RBV. The mid-term
exam will be multiple-choice and/or short-answer essay questions and will cover all of the material (e.g., readings, cases, text, relevant current events, lectures,
and discussions) up to that point in the course. The mid-term exam tests cognitive understanding of the material (while the outside project tests your ability to
apply the analyses covered in the first two modules.)
Individual Final Exam. The final exam is scheduled according to the University’s final exam schedule. You should attend the exam for your specific section.
It will be a two-hour comprehensive exam covering all of the modules and material (e.g., readings, cases, text, lectures, relevant current events, and discussions).
There will be two parts. One will include 40-50 multiple-choice or short-answer questions. The second part will involve questions about a case handed out on
the last scheduled day of class for you to analyze. I will ask short essay questions based on the case, Questions will be similar to the kind of questions posted in
bb for the cases we have been discussing each week in class. You will have the final case to study in advance for information and may underline. It will be your
responsibility to bring the written case to class the day of the final with no markings other than underlining, no written notes on the case. I will NOT hand out
extra copies of the case on the day of the final. Final short essay questions will ask you apply theories to this case. Please note: the University determines the
date/time of the Final Exam. For the date and time of the final for this class, consult the USC Schedule of Classes at www.usc.edu/soc. Select the corresponding
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semester to view and click on the “Final Examinations Schedule” link on the left side of the screen. It is your responsibility to verify the accuracy of this date
and time.
Group Written Strategy Analysis /Current Organization Selection. You will write one 25 to 30 page (including all attachments) strategic analysis of an
organization as part of a self-selected group of 4 to 6 students working together. It is an important part of your learning as it helps you demonstrate your ability to
achieve the learning objectives by being able to perform specific forms of analyses taught throughout the four course modules. This paper will offer a strategic
analysis of an organization of your choice, not part of the assigned cases. The evaluation criteria and format are in Appendix A. The group strategy analysis
will include a detailed industry analysis (including a brief history of the industry and future directions of the industry as a whole if appropriate), a strategic
analysis of the firm(s) of interest, and practical recommendations for the future.
You may chose among current approved organizations facing interesting strategic issues. Your choice of organization must be turned into me not later than
9/16. These organizations should be new to all members of your group and should not be your family business or one in which any of you or members of your
family have worked during the past five years. Please meet with me as early as possible to discuss your group paper. Only one firm may be chosen by one team
across both sections so I encourage you to sign-up as soon as possible for your preferred organization.
The mid-term paper, Part 1a and 1b of the assignment, (see Appendix A) are due 10/21. I will read thoroughly, add comments and suggestions, and
would like to meet with each group to discuss the final recommendation sections. Please make arrangements to come to office hours with your group
after the mid term paper is returned. While the mid term paper will be graded on its merits and should be the best job you can do, I expect groups to
incorporate my suggestions and edits into their final paper. The final paper with revisions, additions, and the recommendations must be turned in
11/25. (i.e., you can always turn it in earlier).
Presentation: All groups will make an oral presentation of their recommendations flowing from their written strategic analysis paper. The presentation allows
the team to report its analysis and recommendations to the class. The exact presentation time and date for each team will be assigned but split among the last two
days of class 12/2 and 12/4. The presentation will also be graded on a group basis. You will receive comments and from all class participants on your
presentation. Clarity and creativity are strongly encouraged in the presentation. They should be not more than five minutes and five minutes for questions and
dialogue.
Peer Evaluation. Each of you will complete a peer evaluation of the members of your outside group strategy analysis team. The peer evaluation form is in
Appendix B. Your peer evaluation is due with the paper. Late submissions will not be counted. Please take great care in completing this evaluation. A careful
reflection of each team member’s quality and quantity of contribution is important. This is also a learning opportunity and I encourage you to share your
feedback with group members in a positive way to assist learning about working in groups. We will provide some time in class to have these feedback
conversations as well. Thoughtful peer evaluations form an important part of your grade. It is possible to have totally even contributions from group members,
but unusual, and all students should include specific comments on strengths and areas for improvement.
Grading Policies:
Weights in Total
Individual Effort (75% of the total)
Quizzes
20%
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Mid-Term
Final Exam:
10% from multiple choice
10% from case analysis, short answers
Class room participation consisting of:
Case preparation, write ups, discussion, attendance
Research participation
Group Effort (25% of the total)
Outside project mid-term paper:
Outside project final paper:
Presentation of outside project paper
Peer evaluation turned in for all other team members
15%
20%
Total
100%
15%
5%
Final grades represent how you perform in the class relative to other students. Your grade will not be based on a mandated target, but on your performance.
Historically, the average grade for this class is about a (B). Three items are considered when assigning final grades:
1. Your average weighted score as a percentage of the available points for all assignments (the points you receive divided by the number of points possible).
2. The overall average percentage score within the class.
3. Your ranking among all students in the class.
The distribution of grades will closely follow the guidelines of the Marshall School of Business.
Assignment Submission Policy:
Assignments must be turned in on the due date. Any assignment turned in late, even if by only a few minutes, will receive a grade deduction (for example, if your
work is a B+ grade, you will be given a C+ grade). If your internet breaks down on the due date, you must deliver a hard copy at the beginning of class on that
day. If you are unable to attend class on that day, make arrangements for your work to be delivered to the classroom or to my box by the start of class. Late or
not, however, you must complete all required assignments to pass this course.
Evaluation of Your Work:
You may regard each of your submissions as an “exam” in which you apply what you’ve learned according to the assignment. I will do my best to make my
expectations for the various assignments clear and to evaluate them as fairly and objectively as I can. If you feel that an error has occurred in the grading of any
assignment, you may, within one week of the date the assignment is returned to you, write me a memo in which you request that I re-evaluate the assignment.
Attach the original assignment to the memo and explain fully and carefully why you think the assignment should be re-graded. Be aware that the re-evaluation
process can result in three types of grade adjustments: positive, none, or negative.
MARSHALL GUIDELINES
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Add/Drop Process
If you are absent six or more times prior to November 16, 2012 (the last day to withdraw from a course with a grade of “W”), I may ask you to withdraw from the
class by that date. These policies maintain professionalism and ensure a system that is fair to all students.
Retention of Graded Coursework
Final exams and all other graded work which affected the course grade will be retained for one year after the end of the course if the graded work has not been
returned to you (i.e., if I returned a graded paper to you, it is your responsibility to file it, not mine).
Technology Policy
Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated by me. We may use internet to look up case updates
AFTER we have discussed cases. Every semester I have problems with cell phones. Just please note that use of cell phones during class will automatically
negatively impact your grade. If I see you using the phone, I will deduct participation points. Even if I don’t mention it, I am very aware of cell phone use!
Don’t complain if your participation grade is lowered by such use. Use of any personal communication devices is considered unprofessional and is not
permitted during academic or professional sessions. ANY e-devices (cell phones, PDAs, I-Phones, Blackberries, other texting devices, laptops, i-Pads, i-Pods)
must be completely turned off during class time unless otherwise directed by the professor.
Statement for Students with Disabilities
Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A
letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me (or to your TA) as early in the semester
as possible. DSP is located in STU 301 and is open 8:30 a.m.–5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776. For more
information visit www.usc.edu/disability.
Statement on Academic Integrity
USC seeks to maintain an optimal learning environment. General principles of academic honesty include the concept of respect for the intellectual property of
others, the expectation that individual work will be submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic
work from misuse by others as well as to avoid using another’s work as one’s own. All students are expected to understand and abide by these principles.
SCampus, the Student Guidebook, (www.usc.edu/scampus or http://scampus.usc.edu) contains the University Student Conduct Code (see University Governance,
Section 11.00), while the recommended sanctions are located in Appendix A.
Students will be referred to the Office of Student Judicial Affairs and Community Standards for further review, should there be any suspicion of academic
dishonesty. The Review process can be found at: http://www.usc.edu/student-affairs/SJACS/ . Failure to adhere to the academic conduct standards
set forth by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead to dismissal.
It is a violation of USC’s Academic Integrity Policies to share course materials with others without permission from the instructor. No student
may record any lecture, class discussion or meeting with me without my prior express written permission. The word “record” or the act of recording
includes, but is not limited to, any and all means by which sound or visual images can be stored, duplicated or retransmitted whether by an electromechanical, analog, digital, wire, electronic or other device or any other means of signal encoding. I reserve all rights, including copyright, to my
lectures, course syllabi and related materials, including summaries, PowerPoints, prior exams, answer keys, and all supplementary course materials
available to the students enrolled in my class whether posted on Blackboard or otherwise. They may not be reproduced, distributed, copied, or
12
disseminated in any media or in any form, including but not limited to all course note-sharing websites. Exceptions are made for students who have
made prior arrangements with DSP and me.
Students are expected to be familiar with USC’s Academic Integrity Policies (i.e., copying, fraudulent possession of an exam, plagiarism, submission of
purchased papers, submitting the same assignment to more than one instructor) and be aware of recommended sanctions (i.e., F for the course,
suspension or expulsion) associated with violating such policies. See Appendix A in the SCAMPUS Guidebook for more detail.
Class Notes Policy
Notes or recordings made by students based on a university class or lecture may only be made for purposes of individual or group study, or for other noncommercial purposes that reasonably arise from the student’s membership in the class or attendance at the university. This restriction also applies to any
information distributed, disseminated or in any way displayed for use in relationship to the class, whether obtained in class, via email or otherwise on the
Internet, or via any other medium. Actions in violation of this policy constitute a violation of the Student Conduct Code, and may subject an individual or entity
to university discipline and/or legal proceedings.
Emergency Preparedness/Course Continuity
In case of a declared emergency if travel to campus is not feasible, USC executive leadership will announce an electronic way for instructors to teach students in
their residence halls or homes using a combination of Bb, teleconferencing, and other technologies.
Within 24 hours of the declared emergency, check Bb for announcements on how the missing course time will be made-up. USC's Blackboard learning
management system and support information is available at blackboard.usc.edu.
COURSE CALENDAR/READINGS/CLASS SESSIONS
Week
1
1
Day
M
W
Date
8/26/2013
8/28/2012
CLASS DAY
TOPIC
Intro & Overview
Classroom Activity
Evidence-Based
Management and ICA
Introduction
Module I: Industry &
Competitive Analysis (ICA)
Lecture
Video Case (VC):
Cappuccino Trail
NO CLASS
1
2
NO CLASS
2
M
9/2/2013
Text Chapters, Course Reader (CR)
and Articles posted in Bb (A)
(A) Pfeffer & Sutton 2006 EVM
(B) What is Strategy? Porter
LABOR DAY
Ch 1
Ch 2
(A) Porter: “The Five Competitive
Forces that Shape Strategy”
13
ICA - The Model
2
W
9/4/2013
3
ICA - Rivalry
3
M
9/9/2013
4
Critical Thinking ICA
Quiz #1 and
Module II: Resource Based
View of the Firm (RBV)
3
W
9/11/2013
5
4
M
9/16/2012
6
4
W
9/18/2013
7
Strategic Thinking: ELC
Turn in Choice of Org. for
Outside Project
RBV
RBV - Developing Capabilities
5
M
9/23/2013
8
5
6
W
M
9/25/2013
9/30/2013
9
10
6
W
10/2/2013
11
RBV
7
M
10/7/2013
W
10/9/2012
13
8
M
10/14/2013
14
W
10/16/2013
M
10/21/2013
WC: Ikea Invades
America
WC: Apple in 2012
WC: Dogfight over
Europe: Ryanair A
Competitive Dynamics -
WC: Ready to Eat
breakfast cereal
Competitive Dynamics -
WC: Olam International
Critical Thinking - Competitive
Dynamics
Discussion on Competitive
Dynamic Evidence
WC: Brazil Foods
Lecture on Corporate
Strategy and
Internationalization/DUE
15
16
(A) Barney: “Looking Inside for
competitive advantage”
Shulman: “Love is a Fallacy”
(A Ghemawat &Rivkin, “Creating
Competitive Advantage”
Ch 3
Ch 5
Ch 6
WC Nike Hitting the
Wall
Discussion RBV Evidence
Lecture on Competitive
Dynamics
Competitive Dynamics -
Turn-in Project Part I
Module IVA Corp Strategy Internationalization
9
Lecture
VC: Ben and Jerry’s v,x,
Haagen Daaz
ELC
12
7
8
Critical Thinking - RBV
Mid-Term Exam 1 and
Module III: Competitive
Dynamics
Written Case (WC in
reader): WalMart
WC: Cola Wars
Continue: Coke and
Pepsi in 2006
Discussion ICA Evidence
Ch 4
(A) Coughlan: “Competitive Analysis:
Anticipating Competitive Actions”
(A) Brandenburger and Nalebuss: “The
Right Game: Use Game Theory to
Shape Strategy”
(A) Piskorski, “Note on Corporate
Strategy”
14
9
W
10/23/2013
17
10
M
10/28/2013
18
10
W
10/30/2013
19
11
M
11/4/2013
20
11
W
11/6/2013
21
12
M
11/11/2013
22
12
W
11/13/2013
23
13
13
M
W
11/18/2013
11/20/2013
24
25
14
M
11/25/2013 25
14
W
11/27/2012 26
15
M
12/2/2013 27
15
W
12/4/2013 28
Verify final date and time yourself.
IVA Corp Strategy - Global
Strategy
IVA Corp Strategy Transnational Strategy
IVB Corp Strategy - Resource
Allocation Models
IVB Corp Strategy - Portfolio
Planning
WC: Ebay, Inc. and
Amazon.com
WC: Google in China
IVB Corp Strategy - Synergy
WC: Walt Disney Co:
The Entertainment King
WC: PepsiCo’s
Restaurants
Consulting Teams for
Outside Papers
IVB Critical Thinking Resource Allocation Models
Quiz #3 and IVC Corp Strategy
- Transaction Cost Economic
(TCE) Approach
IVC Corp Strategy Boundaries of the Firm
Review for Final
Final Outside Paper Due
Presentation Day 1
THANKSGIVING
Presentation Day 2
Presentation Day 3
Final Exam
WINTER RECESS 12/19- 1/12
Important Dates
9/11 Quiz #1
9/17 Turn in Choice of Organization for Outside Paper
10/2 Midterm
10/21 Turn-in Project Part I
11/13
11/25
Quiz #3
Final Outside Paper Due
Ch 7
Ch 8
Starbucks on bb
WC: House of Tata
Gupta & Govindarajan, “Managing
Global Expansion”
Lecture
NO CLASS
NO CLASS
10 a.m.class final is Monday Dec. 16 at 8 a.m. to 10 a.m.
12 p.m. class final is Friday Dec 13 at 11 a.m. - 1 p.m.
15
Case
Wal Mart
Coca-Cola Continue
Ikea Invades America
Apple 2012
Nike: Hitting the Wall
Dogfight over Europe:Ryanair A
Ready to Eat Cereal
Olam International
Brasil Foods
eBay and Amazon.com
Google in China
House of Tata
Walt Disney Co: The Entertainment King
PepsiCo’s Restaurants
House of Tata
Walt Disney Co: The Entertainment King
16
Appendix A: Written Strategy Analysis and Oral Presentation
The written strategy analysis is a 30 page strategic analysis of an organization of your choice not part of the
assigned cases or one where you or your relatives has worked during the past five years. Groups that do not
choose a firm for analysis will be assigned one. Please meet with me as early as possible to discuss your
group paper. Your choice of organization must be turned into me not later than Session 6.
The group strategy analysis will include a industry), a strategic analysis of the firm(s) of interest, and
practical recommendations for the future.
The group strategy analysis should include a detailed analysis of the industry within which it competes
analysis (including a brief history of the industry and future directions of the industry as a whole if
appropriate, a strategic analysis of the firm of interest (source of competitive advantage, the sustainability of
the firm’s competitive advantage) and a strategic plan for the organization’s future.
Part 1a and 1b of the assignment is due not later than the day of the mid-term exam and the remainder
of the assignment (Part 1b through 1c) must be turned into me not later than Session 26. The last two
days of the term are set aside for a summary presentation to the class of your written strategy analysis
(see Bb and syllabus for details).
A. Written Analysis – The following are general guidelines. Be sure to check Bb for the “grading
rubrics” to make sure your submission receives all the points it deserves.
1.
2.
Evaluation Criteria for Written Analysis:
a.
Industry analysis (35%)
i. How well are the 5-forces identified?
ii. How well are the 5-forces used to answer the following:
1. For whom is the industry potentially profitable now?
2. How should the 5-forces be modified to insure future profitability for the
focal firm?
b.
Competitive advantages of focal firm (45%)
i. How well are the firm’s competitive advantages identified?
ii. How well are the firm’s resources and capabilities analyzed as sources of
competitive advantage
iii. How well does the analysis fit the firm’s actions to the changes in the industry
structure needed to insure future profitability?
iv. How well is the sustainability of the firm’s competitive advantages analyzed?
c.
Recommendations (20%)
i. How well do the recommendations fit with the industry and firm situation?
ii. How well would the recommendations insure abnormal returns for the firm?
Format for Written Analysis:
Length: 30 pages maximum. 20 pages for cover page, table of contents, and written analysis and 10 pages
for attachments.
First page: Cover page with title, course title, number, and section, and each team member’s name
with e-mail address.
Second page: Table of Contents
Page 3-20: Content of your analysis.
17
Attachments: 10 pages to include supporting analyses such as spreadsheet models, diagrams of
value chain, 5-forces, etc. Please do not include materials prepared by others outside your group
(e.g., newspaper articles, internet downloads).
References should include books, academic articles, newspaper clippings, on-line sources, interviews in
proper academic format of either MLA or APA. These references are not counted as part of your 30-page
maximum. This section is very important because it indicates how broadly you searched for
information, how well you were able to synthesize the materials you found, and how much insight or
depth of analysis you were able to develop.
Margins: 1” margins (left, right, top, bottom)
Size paper: 8.5” x 11.0”
Size type: 12-point type
a. Line spacing: double-spaced for all text (not for tables, analyses, references, or block quotations)
Page numbers: pages numbered in the upper right corner (no page number on first page). Submit an
electronic copy to me by e-mail.
B. Oral Presentation
a.
The purpose is to:
1. Share what you’ve learned with others in the class so that they can understand how you did
your analysis, arrived at your conclusions, and potentially identified a useful investment
and or employer for them in the future.
2. Demonstrate your ability to master the course content by applying it to an organization of
your choice.
3. Practice making clear presentations that quickly get to the point and are supported by
thoughtful analysis.
4. Practice your presentation together as a group before standing in front of the class.
5. Format:
b.
Time: 10 Minutes Maximum
c.
Prepare professional looking PowerPoint slides and make your presentation from them (keep the
slides simple with just the main points – five slides or less should be your goal). Fill in the rest of
the detail orally. When you present, you should be familiar enough with the material that you do
not need to look at your slides. Follow the sequence of telling the audience your conclusion first,
then your reasoning that lead you to your conclusion, and then restate your conclusion at the end.
d.
Cover the following two points:
1. Approach (e.g., seek employment or buy stock) and conclusion (yes/no seek employment
or yes/no buy stock)
2. Why? Cleary make the argument in support of your conclusion by summarizing the
analyses that led you to your conclusion using the content from this course (e.g., ICA,
capabilities, executive leadership, etc.). You can add other analyses from previous courses
that support your argument but in no case should this substitute for using the content from
this course. A note of caution, be sure that all of your analyses are integrated together
(i.e., do not have one person do the ICA, another do the financials and another do the
marketing segmentation analysis without linking them together). The different analyses
should be integrated with the others by each person as they present and not by someone at
the end.
Evaluation Criteria for Oral Presentation (see the Grading Rubric posted in Bb for details)
1.
2.
3.
4.
Clarity of argument
Use of materials from this course
Integration of presentation
Adhering to the format
18
Appendix B: Peer Evaluations
Please allocate 100 points across all the members of your team apart from yourself to
reflect your assessment of their individual contributions to the team effort. I will treat your
assessments as confidential.
Your name: ___________________
Team-member name:
Contribution:
1. _____________________
_____
2. _____________________
_____
3. _____________________
_____
Total:
100
In the space below, provide some summary comments that can be fed back to each of your
team members:
Greatest Strength
1. ________________________________________________________________
________________________________________________________________
2. ________________________________________________________________
________________________________________________________________
3. ________________________________________________________________
________________________________________________________________
Areas for Improvement:
1.
________________________________________________________________
________________________________________________________________
2.
________________________________________________________________
________________________________________________________________
3.
________________________________________________________________
________________________________________________________________
19
Appendix C: Participation Behaviors and Associated Scores
Excellent performance range: 100 to 90
- initiates information relative to topics discussed
- accurately exhibits knowledge of assignment content
-demonstrates excellent listening by remaining on "same page" as rest of class as
demonstrated by comments
-brings up questions that need to be further explored
-clarifies points that others may not understand
-draws upon practical experience or personal opinion
-offers relevant/succinct input to class
-actively participates in simulations and classroom exercises
-demonstrates ability to apply, analyze, evaluate, and synthesize course material
-demonstrates willingness to take risk in attempting to answer unpopular questions
-attends over 90% of all classes
Good performance range: 85 to 89
-regularly participates in discussions
-shares relevant information
-gives feedback to classroom group discussions
-consistently demonstrates knowledge of reading assignments
-demonstrates ability to analyze/apply course material
-demonstrates willingness to attempt to answer questions
-attends more than 85% of all classes
Fair/average performance range: 80-84
-participates in group discussion when solicited
-demonstrates knowledge of course material
-offers clear, concise, "good" information relative to class assignments
-offers input, but tends to reiterate the intuitive
- attends more than 80% of all classes
Poor performance range: 75-79
-occasional input, often irrelevant, unrelated to topic
-reluctant to share info
-not following flow of ideas
-personal application only
-drains energy from class goals
-attends more than 75% of all classes
Unacceptable performance range: <74
-fails to participate even when specifically asked
-gives no input
-does not demonstrate knowledge of readings and cases
-shows up to class; does nothing
-shows up late or leaves early
-uses electronic entertainment devices during class (e.g., texting, e-mail, has laptop open)
-group distraction
-irrelevant discussion
-not sticking to topic
-Behaves toward others in disruptive fashion, for example, sarcastic comments aimed at others
-Misses 25% or more of all classes