355002001 MBA Business Policy/Strategic Management

Fall Semester, 2010 3 credit hours Professor Yegmin Chang Department of Business Administration Office: 1012 Comm Bldg Phone: x-81012 Email: [email protected]

COURSE DESCRIPTION: This English-instructed course is the capstone course in the MBA program. After finishing functional management courses such as marketing management, financial management, human resource management, etc. with which to learn to become a competent functional manager, students will study this course to learn how to integrate these functional courses and make business decisions that view the company as a whole. In other words, students learn to analyze business problems or issues confronting the total enterprise, not just interpret them as personnel, money, product, or production problems. The total enterprise perspective is the strategy perspective and making strategic decision from the-company-as-a-whole point of view is the job of general managers. Therefore, this course is designed to train students to analyze business situations from the point of view of the practicing general manager. General managers have responsibility for making strategic decisions that insure the long-term prosperity of the entire firm or a major division. The key tasks of the general manager, the content of general management, include the determination of purpose and direction of the company or division, the detection of environmental change, the identification of opportunities and strategies to pursue the opportunities, the procurement and allocation of critical resources, the integration of activities across various parts of the organization, and, the monitoring of the whole process to achieve expected results. In short, the general manager is the mediator between environmental change and internal organizations response. To be effective, general managers need to have foresight of

environmental changes and at the same time have a sound understanding of how an organization with its loose-coupling parts produces outcomes. He needs relevant knowledge in functional areas such as marketing, finance, R&D, and production which students have already learned the subjects in previous courses. He also needs relevant knowledge and skills in environmental analysis to understand emerging trends in demands and competition. These knowledge and skills will be the focus of this course. Not everyone who takes this course will ultimately become a general manager. Yet, for two reasons, this course will benefit virtually all students. First, recent trends in the corporate world towards creating flatter, less hierarchical organizations have resulted in strategic decisions being made at lower hierarchical levels. Thus, even non-executives are likely to make decisions and initiate actions that have significant strategic implications. Similarly, even the lowest level employees within firms are now being asked to contribute innovative and creative ideas that will improve the functioning of the organization as a whole. Thus, it is increasingly important for non-executives to understand how their actions affect the whole enterprise. Second, functional specialists will also benefit from developing a general management perspective so they will have a better understanding of the problems they are dealing with and of the expectations of the top executives. Ultimately, every functions actions must be coordinated with the overall needs of the business. In fact, functional specialists are the people on whom general managers must rely to implement strategy. Since functional managers are often under pressure to fix problems in their own areas without regard to the overall needs of the business, it is critical that functional managers develop a keen awareness and appreciation of the challenges facing the enterprise as a whole.

TEXTBOOK and CASES: 1) Recommended Textbook Barney, Jay B. Gaining and Sustaining Competitive Advantage. 3rd Ed., Prentice-Hall, 2008. 2) Harvard Business School Cases: Strategy (reprint) 3) Harvard Business School Cases from PERDO office.

FORMAT OF INSTRUCTION:

1. Lecture and case discussion. 2. Oral presentation of case analysis 3. Learning community in Universitys e-learning website

RECOMMENDED BOOKS: 1. Rebert M. Grant, Contemporary Strategy Analysis. 6th ed.,, Oxford: Blackwell Publication. 2009. 2. Porter, M.E. Competitive Strategy, Free Press, 1980. 3. Hamel, Gary, and C.K. Prahalad, Competing for Future, HBS Press, 1994. 4. Hamel, Gary, Leading Revolution, HBS Press, 2000. 5. Barlett, C. A. and S. Ghoshal, The Individualized Corporation, Harper-Collins, 1997. 6. Porter, M. E., On Competition, HBS Press. 7. Mintzberg, . et. al., Strategy Safari: A Guide Tour through the Wilds of Strategic Management. Free Press, 1998. 8. Bossidy, D. and R. Charan, Execution: The Discipline of Getting Things Done, 2002. 9. Kim, W, Chan, and R. Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business School Press, 2005.

COURSE OBJECTIVES: 1. The general managers perspective, or strategic perspective. 2. The strategic management/strategic planning/strategic decision making process, including SWOT analysis. 3. The strategy content, including business level strategy, corporate-level strategy, and international strategy. Specifically, the course aims to assist students to

1. Develop and reinforce a general management point of view -- the capacity to view the firm from an overall perspective, in the context of its environment. 2. Develop an understanding of fundamental concepts in strategic management: the concept of strategy, the strategic decision making process, environmental analysis, competitive analysis, and strategy implementation and organizational change. Synthesize the knowledge gained in previous courses. Obtain familiarity with tools of industry analysis by analyzing the key characteristics of an industry. Develop a better understanding of the inner workings of large, complex organizations the goal being for students to better understand their future work environment. Apply in working out business strategies and implementation plans. Develop habits of orderly, analytical thinking and skill in reporting conclusions effectively in both written and oral form.

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SCHEDULE

Week 1

Date 9/15

2 3 4 5 6 7 8 9

9/22 9/29 10/6 10/13 10/20 10/27 11/3 11/10

Class Agenda Introduction Course requirements Strategy Planning and Strategic Management What is Strategy Reading: HBR89 Strategic Intent 1. Head Ski Company, Inc. 2. Komatsu Limited Environmental & Industry Analysis 3. Intel corporation 1968-2003 (9-703-427) 4. Crown Cork and Seal in 1989 5. Cola Wars Continue: Coke vs. Pepsi in the Twenty-First Century (9-702-442) Memorial Day No class Firm Resources & Capabilities 6. Canon: Competing on Capabilities Competition and Strategy Cost Leadership

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11/17

11

11/24

12 13

12/1 12/8

14 15 16

12/15 12/22 12/29

17 18

1/5 1/12

7. Wal-Mart Stores in 2003 (HBS Case: 9-704-430) Product Differentiation 8. Airborne Express (9-798-070) Reading: HBR07-Mapping your Competitive Position 9. Zara: Fast Fashion (9-703-497) Reading: HBR04-Value Innovation: The Strategic Logic of High Growth 10. Samsung Electronics (9-705-508) Corporate Strategy Vertical Integration 11. The Pharmaceutical Industry in the 1990s (9-796-058) 12. Kodak (A) (9-703-503) Corporate Diversification 13. The Walt Disney Company: Entertainment King (9-701-035) Strategic Change 14. GEs two-Decade Transformation: Jack Welchs Leadership (9399-150) 15. GEs Growth Strategy: The Immelt Initiative (9-306-087) Case project presentation

ASSESSMENT:

1) 2) 3) 4)

Individual class participation Case Presentation Individual class work Final Group Case Project-report & presentation

20% 30% 20% 30%

Group case project is to write and present a case analysis of a successful firm headquartered in SE&E Asia region. There are two types of case style to be adopted: One is the general strategy case. The focus of the case is to report the strategy of a company. The case may include: (a) The strategy of the company, its products, markets, and scope of operation; (b) To explain why the company has been successful in the past in light of the companys environment, resources, key managers decisions. (c) To conduct a SWOT analysis that analyze the current environment concerning its future trends and their impact on the firm and competition, as well as its internal weaknesses against achieving goals, and (d) to suggest changes (if any) that need to be made.

The second type is the strategy case with focused themes. The case may be about industry analysis and competitive dynamics, or about the companys strategic issues with strategy themes such as merger and acquisition, diversification, investment expansion, new product launch, restructuring, alliances,etc. use of SWOT analysis is strongly recommended. Each group may conduct field interview or library research or a combination of both to prepare the case. Each member of the group is expected to contribute a similar amount of effort to the teamwork. Each group may turn in (a) their PowerPoint file with no bonus points; or (b) a more complete version of the written report either in printed or electronic form as the final report with bonus points up to 10% of the original grade earned from this case project.

Case Questions (case themes): Komatsu Limited (The concept of strategy) 1. How do you explain Komatsus success? What are the sources of Komatsus success? 2. What is Kawai trying to achieve through his various policies, programs, and plans? Crown Cork & Seal in 1989 (5-force model, industry evolution) 1. 2. 3. How attractive has the metal container been over the years? How well did Crown Cork do under John Connelly? What were the keys to their success? What significant changes are taking place in the industry? How should the new CEO, Bill Avery, respond? Is it finally time to change the Connelly strategy that has been successful for over 30 years?

Canon (resources and capabilities that support related diversification) 1. 2. Why has Canon been so successful? What is it about Canon that allowed the company to be so successful in the personal copier market? How has Canon developed its competencies and capabilities? What can we learn from the company about the competence building process?

3.

What can we learn from Canons management of the competence leveraging process

Wal-Mart Stores, Inc. (Sources of competitive advantages and growth strategy) 1. 2. What are the sources of Wal-Marts competitive advantage in discount retailing? How sustainable their position in discount retailing will be in the future?

Cola Wars Continue: Coke and Pepsi in the 21st Century (9-702-442) (Competition Dynamics, 5-force model, industry evolution) 1. Is the soft drink industry profitable? And why or why not?

2. Compare the economics of the concentrate business to the bottling business: Why is the profitability so different? 3. How has the competition between Coke and Pepsi affected the industry profitability? Are these firms making strategic mistakes? And why or why not? 4. Airborne Express (differentiation to survive) 1. How did the express mail industry evolve over time? What are the main changes in

recent years and how were smaller competitors affected by these changes? 2. Compare Airborne Expresss strategy with the strategies of FedEx and UPS. 3. What is the advantage of Airborne Express Strategy? How has Airborne Express managed to success in its industry? Zara: Fast Fashion (9-703-497) (a traditional industry in the era of globalization) 1. Explain why Zara has become a successful fast growing company in the apparel industry? 2. What is Zaras value creation?

The Pharmaceutical Industry in the 1990s (vertical Integration) 1. What was the rationale for PBMs? 2. Does Medco fit with Mercks strategy? What does Medco bring to Merck? What are the advantages and disadvantages? What does Medco get from the Merck

acquisition? Kodak (A) (How did a big company respond to threats) 1. 2. 3. Explain why Kodak can maintain market dominance for almost a century. What was Kodaks response to threats from Fuji in film market and from digital revolution in imaging. Evaluate Kodaks strategic response.

The Walter Disney Company: The Entertainment King (9-701-035). (Diversification strategy, diversification management) 1. 2. 3. How did Disney achieve its status as the largest entertainment conglomerate? How did Disney explore its synergy of entertainment conglomerate? How should Disney maintain its goal of growth and profitability?

GEs two-decade transformation: Jack Welchs Leadership (Corporate transformation, Diversification strategy, Implementation) 1. How difficult a challenge did Welch face in 1981? How effectively did he take

charge? 2. What is Welchs objective in the series of initiatives he launched in the late 1980s and early 1990s? What is he trying to achieve in the round of changes he put in motion in that period? Is there a logic or rationale supporting the change process? 3. How does such a large, complex diversified conglomerate defy the critics and continue to grow so profitably? Have Welchs various initiatives added value? If so, how?

Evaluation Criterion of Case Presentation Presentation Case: Criterion Structure/ Organization Content Description Information presented in logical sequence that audience can follow Demonstrate full knowledge of the case under investigation with satisfactory explanation and elaboration Identification of, analysis of issues, presentation of solution/synthesis Delivery, tone and voice, and visual aids, Generate discussions, response to queries. Demonstrate good command of knowledge learned from this course and elsewhere. Weight 10% Score Date of Submission: Group #: Comments

30%

Issues and Analysis Presentation skill, Handle Q&A Command of Knowledge

20%

10%

30%

Group Members and individual contribution (total: 100%): Member ID No. 1. 2. 3. 4. 5. 6. __ _ _ _________ Name _________ _____Contribution_ __

________________ _______ ______________ _________ ____________ ___________ ____________ ___________ ____________ ___________ ____________ ___________

7.

____________ ___________

Evaluation Criterion of Case Written Report Title: Criterion Context and background information/ relevance Content Description Why of this case. How does this case relate to course materials. Case is informative and rich in learning material. Incidents are interesting and realistically portrayed Writing, free of errors, format/organization, information used Identification of issues, Analysis of issues, synthesis/solution, Application of knowledge learned from this course and elsewhere. Weight 10% Score Date of Submission: Group #: Comments

30%

Writing

10%

Analysis

30%

Application

20%

Group Members and individual contribution (total: 100%): Member ID No. 8. 9. 10. 11. 12. 13. __ _ _ _________ Name _________ _____Contribution_ ________________ _______ ______________ _________ ____________ ___________ ____________ ___________ ____________ ___________ ____________ ___________ __

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ASSURANCE OF LEARNING Adherence to Mission

Adherence to Program Learning Goals

Pedagogical Methodologies
Lecture Study Group Case Study Project Role-Playing Theater Learning Quantitative analysis Thinking Strategic Thinking Critical Thinking Quick Thinking Flexibility Creativity Persistency Acceptance of Others Confidence Selfmanagement Professional Knowledge Others: Concept mapping____ :______________________ Others: ________________________ :______________________ e-Learning Seminar Internship Independent Learning Seminar Others

Student Abilities Enhancement

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 Communication Comprehension Ability

Others: ________________________ :______________________ Others: ________________________ :______________________

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