Course Outline

RSM392H1
Strategic Management
Fall 2020
Course Meets: L0101/L9101 Mon 9-11am
Room: Quercus Bb Collaborate, Class will be offered synchronously at the appointed time each
week.

Instructor: Andy Seungho Back

Email: [email protected]
Course Webpage: https://q.utoronto.ca/ (choose RSM 392)
Office Hours: Bb Collaborate; Mondays, 2 - 3pm or by appointment

Course Scope and Mission

The field of strategy seeks to understand why some businesses are able to consistently turn a profit
while others are unable to do so. In this course, we will explore various sources (other than “luck”)
which explain why firms with equally good products and equally competent employees nonetheless
perform so differently. Among other things, we will study:

1. Why there are persistent differences in productivity and profit among firms
2. How certain strategic choices “match" better than others
3. How firms can influence their rivals’ behaviours
4. When firms should shrink or expand in scope
5. How to motivate workers, managers, and suppliers
6. When to use formal versus informal contracts among individuals in the firm
7. How to make and implement strategy in an entrepreneurial firm
8. Special topics for the value of networks in strategy

The content is mostly taught from an economics perspective, and we will use content you learned in
introductory microeconomics, such as game theory. For each class, you will read an academic
article looking at a problem of firm strategy, as well as a case (or cases). We will not care primarily
about the specific problems that firms in the cases face, but rather we will attempt to draw
generalizable lessons about why some firms outperform others.

The goal of this course is to improve your decision-making and critical thinking capabilities through
applying strategy tools in peer discussion and argumentative writing. The emphasis of the course is
on rigorous thinking and learning rather than finding the “right” answer.

This course is designed to function like an MBA course and to prepare the students for potential
future MBA courses and for their professional work environment. The readings, assignment, and
classroom environment build heavily on the MBA Strategy courses offered by leading MBA
programs. Consistent with this approach, we emphasize class participation, class discussion, and
professionalism to a substantial degree.

Course Prerequisites: RSM219H1, RSM222H1

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Required Technology
For Fall-Winter 2020-21, this course may be conducted entirely online. To participate fully and to
complete the course successfully, you must ensure you have a computer with a working webcam,
microphone and reliable access to an internet connection. For further details, please visit this link:
Recommended Technology Requirements for Remote/Online Learning

Required Readings
Each week has roughly two or three readings. Unless explicitly mentioned, all readings are
required. All of the non-case readings are linked in this syllabus and will also be available in PDF
form on Quercus. See instructions on page 7 of this syllabus on how to purchase the cases.

Evaluation and Grades

Category Weight Due Date

Class Participation 10% Ongoing
Weekly Assignment 10% From Class 2 on
Topics in the News Memos 10% From Class 4 through Class 12
Midterm Test 30% Nov 2 (in class)
Final Assessment 40% TBD during Final Assessment Period

Class Participation (10%):

In general, strategic decision making requires reasoned analysis under conditions of limited
information and uncertainty. One of the primary goals of this course is to help you learn to clarify
your own position on a strategic question and to be able to articulate and defend it clearly. You
must be prepared for every class. This class will be highly interactive, and students will be asked to
provide their reasonings in almost every class, especially in their breakout rooms. For readings, you
should be able to outline the problem that the article addresses, describe the core points of the
reading, and most importantly, offer your analysis of the strengths and weaknesses of the reading’s
central argument. For cases, you should be able to identify the key issues, problems, and
opportunities facing the central protagonists, to articulate and evaluate alternative approaches to
the problems, and to describe and support your stance. Make sure that in-class comments are
focused around the case and reading material. Adding information outside the assigned material
shifts our focus away from the issues we need to emphasize and should be done only when
necessary to advance the discussion.

My goal is for this class to serve as a riskless environment in which we all feel comfortable testing
new ideas and pushing the boundaries of our thinking. See the section on Preparing for Class for
more specific details on what to do to ensure you’ll feel comfortable when discussion starts.

Weekly Assignment (10%): Before classes 2 through 12, aside from Midterm day, I will ask a few
questions on Quercus about the assigned material. I use these questions to ensure that you do the
readings and to give you practice drawing links between the theory and the case readings.

Topics in the News Memos (10%): From class 4 to 12, aside from Midterm day, a different group of
roughly six to seven students will prepare a 10 minute presentation about how the theoretical
content we saw in the previous class relates to an article in the business press. You will also
prepare a write-up of 2-3 pages (again, as a group) to be handed in. For example, if we are
discussing formal incentives for workers, you will look through the business press of your choice -
this can be local newspapers like the Financial Post, international papers like the South China
Morning Post, or news magazines. By Saturday morning at 8 a.m., you must send me the article
you propose, and I will have it posted on Blackboard for other students to read. Your goal will be to
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briefly introduce what the firm or organization is doing, the alternatives they can pursue instead, and
a theoretically-grounded argument about which option you feel is most appropriate. Other students
in the class will then challenge your interpretation. You should feel free - indeed, I encourage you -
to come to office hours as a group during your week so we can discuss how to prepare this.

In-Class Midterm Test (30%): The midterm test will take place during class on Nov 2, 2020.
This test will be given over Quercus Bb Collaborate. The midterm will consist of short-answer
questions on a case. I will provide more information on the structure of the exam in advance of the
midterm date.

Final Assessment (40%): There will be a 3-hour final assessment scheduled during the final
assessment period. This assessment will consist of short-answer questions that span the entire
semester’s coursework. I will provide you with more information on the structure of the assessment
on the final day of class.

Office Hours and Email Policy

You are encouraged to come to my office hours to discuss the course and how you can improve
your understanding of the material. If you cannot meet during the regularly scheduled time
(Mondays 2 – 3pm), we will make arrangements for an alternate time.

Generally, it is best to ask questions in class, after class, or in office hours. If you need to reach me
outside of class and office hours, however, you can send me an email. Prior to sending an email,
please check the course website to see if a recent Quercus announcement (or the syllabus) can
answer your question. If you send me an email, please put “RSM 392:” at the beginning of
your subject line so I can quickly find your email.

How to Prepare for Classes

Below is a simple outline to guide your class preparation.

Start: Skim the reading, look at headings and subheadings to understand what the reading
discusses. Then examine any diagrams.

Next: Reread the questions for the lecture. Use these questions as you read the text itself.

Ask Yourself: What are the central points of the reading? Why are these points important?
What is not addressed? What assumptions are being made? In other words, be prepared to
know the central points of the reading as well as share a critical analysis of your reading.

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Other Administrative Items:

Diversity, inclusion and equity

The University of Toronto is committed to equity, human rights and respect for diversity. All
members of the learning environment in this course should strive to create an atmosphere of mutual
respect where all members of our community can express themselves, engage with each other, and
respect one another’s differences. U of T does not condone discrimination or harassment against
any persons or communities.

Electronic Course Materials

This course will be using the following electronic course materials: Coursepack. These materials will
cost a total of $61.10. The use of these materials complies with all University of Toronto policies
which govern fees for course materials.

Credit / No-Credit Option in Rotman Commerce

You may request to Credit/No-Credit an RSM course in the following cases only:

 The course will not be used for any specialist or focus, including the 8.0 RSM FCE
requirement.
 The course does not have a group work component.

If you wish to request credit/no-credit for an RSM course, you must meet with an Academic Advisor
in the Rotman Commerce Program Office.  The deadline for this term is June 1, 2020.

Final approval is on a case-by-case basis with the permission of the Director, Rotman Commerce.

Missed Assignments/Examinations

Students who miss a test or assignment for reasons entirely beyond their control (e.g. illness) may
request special consideration.

 In such cases, students must:

1. Notify the instructor AND the Rotman Commerce Program Office on the date of the missed
course deliverable, e.g. missed test, assignment or class (in the case of participation
marks).
2. Complete a Request for Special Consideration Form and submit it along with supporting
documentation as indicated on the form. For example, this may include either your Self-
Declaration of Absence on ACORN, or Verification of Student Illness or Injury form to the
Rotman Commerce Office within 2 business days of the originally scheduled course
deliverable.

Students who do not provide appropriate or sufficient supporting documentation will be given a
grade of 0 (zero) for the missed course deliverable.

 Note that documentation must clearly establish that you were ill or had other circumstances
that prevented you from attending on the date in question.  Reports after-the-fact are not
sufficient.

Course Work & Academic Honesty

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Submission of Assignments – Late submissions of any assignment may be considered; however,
a resolution may be determined at the instructor’s discretion and may include an academic penalty.
The manner in which the assignment should be submitted (via Quercus or in-class) is noted on the
assignment description itself. No other methods may be used to submit the assignment unless an
arrangement has been made in advance of the due date with the instructor. Missing or unreadable
attachments submitted via Quercus will be considered late unless they are resubmitted before the
assignment due date.

Any assignments received after the deadline but within a week after the deadline will be deducted a
full letter grade (ie. from an A- to a B-).  Any assignments received thereafter will continue to be
deducted a full grade per week.

Accessibility Needs
The University of Toronto is committed to accessibility. If you require accommodations for a
temporary or ongoing disability or health concern, or have any accessibility concerns about the
course, the classroom or course materials, please contact Accessibility Services as soon as
possible at [email protected] or studentlife.utoronto.ca/as.

For courses with deliverables that require you to work in teams, please note the following. If you are
a student registered with Accessibility Services, and extensions are one of your academic
accommodations, requests for extensions impact everyone in the group. As a result, requests for
late submissions of any component of teamwork will require compelling reasons, advance notice,
and must work for everyone in the team. You are encouraged to discuss with your course instructor,
Accessibility Advisor, and other team members what you need in order to successfully complete
your coursework. Additionally, the Rotman Commerce Centre for Professional Skills offers
Teamwork Mentors (see section above) who can help you and your team discuss how to support
you effectively and how to develop a work plan that meets the needs and constraints of all team
members.

Volunteer Notetaking
If you’re interested in helping to make our classroom more accessible, volunteer to be a notetaker!

Accessibility Services needs dependable volunteer notetakers to assist students living with a
disability to achieve academic success. All you have to do is attend classes regularly and submit
your notes consistently.
1. Register online as a Volunteer Note-Taker at:
https://clockwork.studentlife.utoronto.ca/custom/misc/home.aspx
2. Follow the link that says “Volunteer Notetakers”
3. Select your course and upload a sample of your notes
4. Once you have been selected as a notetaker, you’ll get an email notifying you to upload your
Notes.

If you have any questions or require assistance, please email [email protected] or call
416-978-6186.

Volunteers may receive co-curricular credit or a certificate of appreciation.

Academic Integrity
Academic Integrity is a fundamental value essential to the pursuit of learning and scholarships at
the University of Toronto. Participating honestly, respectively, responsibly, and fairly in this
academic community ensures that the UofT degree that you earn will continue to be valued and

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respected as a true signifier of a student's individual work and academic achievement. As a result,
the University treats cases of academic misconduct very seriously.

The University of Toronto’s Code of Behaviour on Academic Matters

http://www.governingcouncil.utoronto.ca/policies/behaveac.htm outlines the behaviours that
constitute academic misconduct, the process for addressing academic offences, and the penalties
that may be imposed. You are expected to be familiar with the contents of this document. Potential
offences include, but are not limited to:

In papers and assignments:

 Using someone else's ideas or words without appropriate acknowledgement.
 Submitting your own work in more than one course without the permission of the instructor.
 Making up sources or facts.
 Obtaining or providing unauthorized assistance on any assignment (this includes
collaborating with others on assignments that are supposed to be completed individually).

On test and exams:

 Using or possessing any unauthorized aid, including a cell phone.
 Looking at someone else's answers
 Misrepresenting your identity.
 Submitting an altered test for re-grading.

Misrepresentation:
 Falsifying institutional documents or grades.
 Falsifying or altering any documentation required by the University, including (but not limited
to), medical notes.

All suspected cases of academic dishonesty will be investigated by the following procedures
outlined in the Code of Behaviour on Academic Matters. If you have any question about what is or
is not permitted in the course, please do not hesitate to contact the course instructor. If you have
any questions about appropriate research and citation methods, you are expected to seek out
additional information from the instructor or other UofT resources such as College Writing Centres
or the Academic Success Centre.

Quercus
The online course page for this course is accessed through Quercus. To access the course page,
go to the UofT Portal login at https://q.utoronto.ca and log in using your UTORid and password.
Once you have logged in, look for the My Courses module where you’ll find the link to all your
course websites. If you don’t see the course listed here but you are properly registered for the
course in ACORN, wait 48 hours. If the course does not appear, go to the Information Commons
Help Desk in Robarts Library, 1st floor, for help, or explore the Portal Information and Help at
http://www.portalinfo.utoronto.ca/students and review the Frequently Asked Questions.

Recording Lectures
Lectures and course materials prepared by the instructor are considered by the University to be an
instructor’s intellectual property covered by the Canadian Copyright Act. Students wishing to record
a lecture or other course material in any way are required to ask the instructor’s explicit permission
and may not do so unless permission is granted (note: students who have been previously granted
permission to record lectures as an accommodation for a disability are, of course, excepted). This
includes tape recording, filming, photographing PowerPoint slides, Quercus materials, etc.

If permission is granted by the instructor (or via Accessibility Services), it is intended for the
individual student’s own study purposes and does not include permission to “publish” them in
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anyway. It is absolutely forbidden for a student to publish an instructor’s notes to a website or sell
them in any other form without formal permission.

A Few Final Notes…

 Arrive on time. Class starts at 9am sharp.
 Minimize disruptions. All cell phones should be turned off during class.

Downloading Your Coursepack:

For assistance contact Ivey Publishing directly Monday to Thursday: 8:00am-4:30pm (EST) Friday:
8:00am-4:00pm (EST) at [email protected] or 519-661-3208

To purchase the course materials, follow the following steps:

1. Go to the Ivey Publishing website at www.iveycases.com

2. Log in to your existing account or click "Register" to create a new account and follow the
prompts to complete the registration. If registering, choose the "Student User" role.
3. Click on this link or copy into your browser:
 https://www.iveycases.com/Coursepackview.aspx?id=26749
4. Click "Add to Cart".
5. You may choose to order in either print or digital format.
o To order the material in digital format, check "digital download" and click "OK".
o To order a printed copy for delivery, enter the print quantity required and click "OK".
Please note that shipping charges will apply.
6. Go to the Shopping Cart (located at the top of the page), click "Checkout", and complete the
checkout process.
7. When payment has been processed successfully, an Order Confirmation will be emailed to
you immediately and you will see the Order Confirmation screen.
o If you ordered digital copies: Click "Download your Digital Items" or go to "My
Orders" to access the file.
o If you ordered printed copies: Your order will be printed and shipped within 2 to 3
business days.
8. Go to the Shopping Cart (located at the top of the page), click "Checkout", and complete the
checkout process.
9. When payment has been processed successfully, an Order Confirmation will be emailed to
you immediately and you will see the Order Confirmation screen.
o If you ordered digital copies: Click "Download your Digital Items" or go to "My
Orders" to access the file.
o If you ordered printed copies: Your order will be printed and shipped within 2 to 3
business days.

Access to your coursepack via your Ivey Publishing account is for a period of 30 days from date
of purchase. Please be sure to save a copy to your computer.

This coursepack is for your personal use only and is not to be shared or distributed in any form.

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 Weekly Syllabus

Date Topic Discussion Questions Reading

1 Sep 14 Introduction What is strategy? Optional reading, but helpful for first class:
“What is Strategy?” by Porter
Why, and to what extent, do firms
differ in their productivity and
profitability?

Why aren't all profits competed away

from successful firms?

Why are business cases difficult to

learn from without theory?

2 Sep 21 Industry How much do industries differ in HBS Case on Crown Cork & Seal
Analysis and their profitability?
Value Capture "The Right Game" by Brandenberger and Stuart (in
Is it best to enter “blue ocean” coursepack)
industries where you are a
monopolist? “Why do Management Practices Differ across
Firms and Countries?” by Bloom and Van Reenen
Are rival firms always competitors?
Optional reading for more technical detail:
Why do some firms in a value chain “Value Capture Theory'“ by Gans and Ryall
earn large profits and some earn
little?

3 Sep 28 Differentiation What are vertical and horizontal HBS Case on Samsung
differentiation?
“Taking Industry Structuring Seriously” by
How can firms differentiate in their Makadok and Ross (only pages 509-523; read the
input markets? Introduction and Discussion closely, skim rest)

When is differentiating your product

bad for profits?

Should you always differentiate into

higher-quality products?

4 Oct 5 Pricing What causes price wars? Kellogg Case on “The Mother of All Pricing Battles”

When do prices get competed down HBS Case on Virgin Mobile

to zero profitability?
Chapter 7 of “Principles of Pricing” by Vohra and
What pricing strategies tend to avoid Krishnamurthi
competing down profits?

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5 Oct 19 Production How can you tell the difference Ivey Case on Porter Airlines
and Industry between learning curves and
Life Cycle economies of scale? Bessen Chapter 2 "Skills of the Unskilled"

What are the dangers of trying to “Industry Life Cycles” by Klepper

take advantage of learning curves or
economies of scale?

Does the age of an industry matter

for entrants’ success?

Why do incumbents get entrenched

in some industries?

6 Oct 26 Theory of the Why do firms exist? HBS Case on Arauco

Firm
Why did firms arise historically? Handout on Theories of the Firm

What should a firm make and what

should a firm buy?

When should firms merge or

separate?

7 Nov 2 Midterm (in-class midterm)

8 Nov 16 Incentives Why can't you make workers do HBS Case on Lincoln Electric
what you want?
“On the Folly of Rewarding A While Hoping for B”
Why are teams hard to motivate? by Kerr

What is performance pay trying to “Excellent Police" by Fisman and Sullivan

accomplish?

When can strong incentives make

outcomes worse?

9 Nov 23 Relational Why are formal contracts so rare in “What do Managers Do?" by Gibbons and
Contracts business contexts? Henderson (Section 4)

When can the promise of future “Management Practices, Relational Contracts, and
business or promotions induce the Decline of General Motors" by Helper and
cooperation today? Henderson

Why did General Motors decline in

the 1980s instead of just copying
Toyota's practices?

10 Nov 30 Entrepreneurs Who becomes an entrepreneur? NTU Case on Meituan-Dianping

and Strategy
Is “disruption” overrated? “Dynamic Commercialization Strategies” by Marx,
Gans and Hsu (pages 1-24; omit appendix)
What makes an entrepreneurial firm
different from established firms? “More Entrepreneurs is Bad Public Policy” by
Shane
How do you decide when to
compete and cooperate with
established firms?
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11 Dec 7 Innovation How important is formal intellectual HBS Case on GSK’s Acquisition of Sirtris
property?
“Absorptive Capacity'' by Cohen and Levinthal
What do scientists in a firm do?

Why may scientists be useful even if

they invent nothing?

Why do the non-research assets of

your firm affect the types of
scientists you hire?

12 Dec 10 Strategic What is social network? Ivey Case on Troubled Spain

Networks
What certain network “Better People Analytics” by Leonardi & Contractor
positions/structures provide
additional benefits? “The Network Secrets of Great Change Agents” by
Battilana & Casciaro
Why do managers need to
understand informal networks within
organizations?

Exam Period TBD (Rotman Commerce Exam Period)

Please note the last day to drop an F term course is November 9, 2020.

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