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Indian Institute of Management Bangalore

Advanced Strategic Management


Term 6 2003-05 Batch
Lead Instructor:

Prof. R.T. Krishnan


Phone: 3160
E-mail: [email protected]

Number of Credits:

Objective:
To provide a strong grounding in concepts in strategy, building on the foundation built in
the Strategy core course
Structure:
The course will have four main themes:
-

Industry & Competitive Analysis


Technology & Strategy
Corporate-level Strategy (including M&A and Alliances)
Strategy Process, Leadership & Transformation

Pedagogy:
The course will be based on analysis of cases and discussion of key concepts through
presentations and lectures.
Evaluation:
Case Analysis
Mid-term Exam
End-term

30%
30%
40%

(two cases per student)

Each student will have to submit a comprehensive case analysis of two cases that will be
discussed in the class. The cases to be analysed will be assigned in advance. The
submission of the case analysis will be due at the beginning of the class in which the case
is to be discussed. No late submissions will be accepted. There is no word limit for the
case analysis though brevity will be appreciated. Each case submission should include an
answer to all the discussion questions though it is advisable to go beyond these questions
so as to consider all relevant issues.

Session-wise schedule:
Note: Some cases may be changed before the start of the course.
Session No.
1.
2.
3.
4.
5.
6.
7.
8.

9.

Topic & case


Introduction & Course Overview
Recap of core Strategy course
Revisiting basic strategy concepts
Case: Intel 1968-1997
Read: What is Strategy?
Competitive Strategy
Case: The Ready-to-eat Breakfast Cereal Industry
Read: Relevant chapters in your core Strategy text
Competitive Strategy
Case: Project Dreamcast: Serious Play at Sega Enterprises Ltd. (A)
Read: Increasing Returns and the New World of Business
Technology & Firm Strategy
Case: HP Kitty Hawk
Read: Value Networks and the Impetus to Innovate
Technology & Firm Strategy
Case: Nucor at a Crossroads
Read: Competing on Resources: Strategy in the 1990s
Technology & National Strategy
Case: Koreas Technology Strategy
Introduction to Corporate Strategy
Case: GE: Strategic Position 1981
Read: Past Approaches to Corporate Strategy;
Managing the Multibusiness Corporation
Diversification
Case: Sundaram Finance
Read: How diversified should Indian business houses be?

10.

Mid Term Exam

11.

Mergers & Acquisitions


Case: Chase Manhattan Corporation: The Making of Americas Largest
Bank
Read: Making Mergers Work
Mergers & Acquisitions
Case: Cisco Systems Inc.: Acquisition Integration for Manufacturing
Read: Capturing the real value in high-tech acquisitions
Strategic Alliances
Case: Xerox & Fuji-Xerox
Strategic Alliances
Case: Corning: A Network of Alliances
Strategy Implementation: The Balanced Scorecard
Case: Mobil US Marketing & Refining Division (A-1)
Read: The Balanced Scorecard: Measures that drive Performance
Strategy Implementation: The Balanced Scorecard
Case: Mobil US Marketing & Refining Division (B-D)
Read: Using the Balanced Scorecard as a Strategic Management
System
Strategic Transformation of Indian Business Houses
Strategic Transformation of Indian Business Houses
Knowledge Management & Strategic Change

12.
13.
14.
15.
16.

17.
18.
19.

Remarks

Case: Skandia AFS: Developing Intellectual Capital Globally


Read: Knowledge & the Multinational Enterprise
Knowledge Management & Competitive Advantage
Leadership & Strategic Transformation
Case: GEs two decade transformation: Jack Welchs Leadership

20

Discussion Questions for cases


Intel 1968-97
1.
2.

3.

What was Intels strategy in DRAMs? What accounts for Intels dramatic decline in market share
in the DRAM market between 1974-1984? To what extent was Intels failure a result of its
strategy?
What strategy did Intel use to gain a competitive advantage in microprocessors? What threats has
Intel faced in sustaining its competitive advantage in microprocessors and what strategies has it
used to deal with each? Why has Intel been able to sustain its advantage in microprocessors, but
not in DRAMs?
Assess the future prospects of Intel. Identify its key strategic challenges and how it should respond
to them.

The Ready-to-eat Breakfast Cereal Industry in 1994


1.
2.
3.
4.

Why has RTE cereal been such a profitable business? What changes have led to the current
industry crisis?
Why have private labels been able to enter this industry successfully? How do the cost structures
of private label and cereal manufacturers differ?
What does General Mills hope to accomplish with its April 1994 reduction in trade promotions
and prices?
What are the risks associated with these actions? How do you expect General Mills competitors to
respond?

Project Dreamcast: Serious Play at Sega Enterprises Ltd. (A)


1.
2.
3.

How would you characterize the competitive dynamics in the videogame industry? What is Segas
competitive strategy and how has it evolved through the companys history?
Compare the development process of the Saturn and Dreamcast game platforms. What are the
differences and similarities? How would you evaluate Segas development capabilities in game
software and hardware development?
How should Ueno Kunihisa react to NECs production crisis, given that only one-third of all
expected Power VR2 chips will be available? Should he delay the launch until the NEC problems
are addressed? Propose a specific plan to deal with this situation.

HP: The Flight of the Kitty Hawk


1.
2.
3.

What would you say are the strengths and weaknesses of the way HP supported the Kitty Hawk
team?
What is your assessment of the way the Kitty Hawk team set out to find a market? What did they
do right and what did they do wrong?
What do you think are the root causes of the Kitty Hawk failure? Is there anything HP could have
done to avoid this failure?

Nucor at a Crossroads

1.
2.
3.

Why has Nucor performed so well in the past?


What is Nucors core competence?
Should Nucor go ahead with the investment in thin cast slab technology?

Koreas Technology Strategy


1.
2.
3.

How important was technology to Koreas economic performance since the 1960s?
What key choices did Korea have to make in its national technology strategy and how did it make
them?
What role did the Korean government play in the technology strategy? Evaluate the
appropriateness of this role at different junctures in Koreas development.

GE: Strategic Position 1981


1.
2.
3.
4.

Why did GE experience profitless growth in the sixties?


Evaluate the companys response in 1972?
Evaluate the appropriateness of the changes instituted by Reg Jones in 1977?
What Challenges did Jack Welch face as GEs new CEO?

Sundaram Finance Ltd.


1.
2.
3.
4.

What are the reasons for Sundaram Finances success as a Non Banking Financial Company?
Do you agree with the companys decision to enter the mutual fund business?
Why/why not?
What should be the future strategy of the company?

Chase Manhattan Corporation: the Making of Americas Largest Bank


1.
2.
3.

4.

What are the strategic benefits, if any, of combining Chase and Chemical? What is the most
significant benefit that the banks will realize from this merger?
Should Chemical reconsider any of its other prospective merger partners?
Critically evaluate the analysis that Chemical and chase performed for determining the level of
employee layoffs and branch closings. How should a company determine what level of
downsizing is appropriate for its circumstances? Over what time period should the layoffs and
branch closings be scheduled?
What should be the disclosure strategy adopted by management to Wall Street and the media?

Cisco Systems Inc.: Acquisition Integration for Manufacturing


1.
2.
3.

Identify what you believe are the most important elements (criteria, processes, specific actions,
etc.) of Ciscos approach to selecting and integrating acquisitions. For each of the elements you
have identified, describe why it is important.
How would you improve Ciscos acquisition selection and integration process What is missing?
What would you add or modify? Why?
What are the specific challenges of the Summa Four acquisition? In your opinion does the Cisco
process adequately address these challenges? Why/why not?

Xerox and Fuji Xerox


1.
2.
3.
4.

What role has Fuji Xerox played in Xeroxs global strategy? How do you expect this role to
change in the future?
Is Fuji Xerox a successful joint venture in 1990? How do you measure its performance?
What were the key success factors in this alliance in the past? Do you expect these factors to
change in the future?
Consider the different options for reorganization listed in Exhibit 11. Select one option in each
functional area and explain why you prefer it over the others.

Corning Incorporated: A Network of Alliances


1.
2.
3.
4.

How appropriate is Houghtons use of partnerships as a means of achieving his strategy? What
benefits and risks do you see? What advice would you offer him in general about establishing
alliances?
What implications will the concept of Corning as an evolving network have on the companys
management practice?
What are the criteria for evaluating the three proposals before the management committee? How
do the proposals meet these criteria?
What are your specific recommendations to the management committee about the three proposals
before them?

Mobil US Marketing and Refining Division (A1)

1. What objectives should the two customer teams (consumer sub-team, dealer sub-team) select for
2.
3.

their core customer outcomes? How can these teams measure what the dealer and Mobil must do
well to achieve the desired customer outcomes?
What should be the objectives and measures for the internal business processes at USM&R?
Comment on the scorecard development process. Why did Bob McCool initiate yet another
initiative, the Balanced Scorecard project? What elements seem critical to the success of a
Balanced Scorecard project?

Skandia AFS: Developing Intellectual Capital Globally

1. How has Jan Carendi been able to grow AFS from a marginal division of Skandia in the late 1980s
into a powerhouse of its growth and profitability by the mid-1990s?

2. What are the strengths and vulnerabilities of the AFS business model? Has Carendi created a
3.
4.

source of sustainable competitive advantage?


Evaluate AFSs concept of intellectual capital and how it is measured and managed.
What changes, if any, should Carendi be contemplating for AFSs strategic, organizational and
managerial model in the future?

GEs two decade transformation: Jack Welchs Leadership


1.
2.
3.

What kind of challenges did Jack Welch face when he took charge of GE ?
What is your assessment of Jack Welchs tenure as CEO?
What are the implications for his successor Jeffery Immelt?

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