Executive MBA ProgramTheme 8 LA 32, 2017-18

Competitive Strategy in Theme 8

In theme 4, we began with a basic overview of strategy, and introduced industry mapping, structural analysis, and business models. After your discussion of global strategy in theme 6, you have seen that strategic thinking is not about any one framework; instead, it is about thinking in ways that lead to deeper insight and more effective action in a wide range of ambiguous settings. In theme 8, we will review frameworks you already know and add some new frameworks so you can practice and develop an intuitive understanding of competitive advantage, competitor dynamics, corporate scope, and renewal.

Finance in Theme 8

In the finance portion of theme 8 we will cover the topics listed below. Focus on Shareholder Value

– Case study: Gulf Oil and Pioneer Natural Resources– Case study: Apple financial policy 2013 – Case study: Solar City

Leveraged Acquisitions– Case Study: HCA – Case Study: Heinz Acquisition– Case Study: Sterling Household Products Company

Derivative Securities: Structure, Pricing and Uses– Case Study: Valuing stock options in a compensation package– Case Study: Sanofi-Adventis acquisition of Genzyme– Case Study: Trendsetter

There is a finance text that accompanies Theme 8, in addition to the RWJJ used in themes 2 and 3. This is Valuation: Measuring and Managing the Value of Companies, Tim Koller, Mark Goedhard, and David Wessels from McKinsey and Co. (KGW), 6th (university) edition. This book is quite detailed and comprehensive. It is a big task to read and absorb all of this book. We will use this book as background reading and it will provide a reference if you want to dig deeper into any particular topic. The main readings for class sessions will be cases. But I will also indicate chapters in KGW that fit with the class sessions if you want more background.

GradingThe primary deliverable in this theme is the project. That counts for 50% of your grade. The other 50% is divided equally between deliverables for Bhambri and Campbell. In Strategy, there will be two or three unannounced in-class quizzes or worksheets to cover a particular weekend’s concepts. Your lowest score will be dropped and your remaining in-class submissions will account for 5% of the grade. The balance of 20% will be based on a take home case exam at the end of the theme that can be done individually or in a group. In Finance there will be one take-home exam which can be done individually or in a small group.

Executive MBA ProgramFriday, November 10, 2017

8:50 a.m. - 12:10 p.m. Professor: Bhambri

Developing and Executing Strategy:

In this first session of theme 8, we will review the case I assigned for the theme 4 written assignment. During the discussion, we will review key frameworks and questions that are essential components of strategic thinking. Initially, we will explore them by deconstructing the history of Wal-Mart. Wal-Mart is an excellent case to examine different aspects of strategy because it provides us the opportunity to study the evolution, rise, and possible vulnerabilities of one of the most powerful companies in the world. Wal-Mart created astonishing value for its investors in its first four decades. A $1650 investment in Wal-Mart stock at its initial offering in 1971 would have netted over $5 million by 2007. Its inexorable dominance was however interrupted partly by its own mis-steps and partly by the growth of online retailing. Did Wal-Mart the disruptor become Wal-Mart the disrupted? Why? Or why not? We are interested in mining this case for insights that are relevant to understanding the range of topics that comprise strategic thinking.

Key topics:

Business Models Strategy Assumptions Competitive Advantage Value Creation and Capture

Preparation questions:

1. Identify Wal-Mart’s early strategy, and explain how and why it enabled Wal-Mart to be so successful in an industry with intense rivalry.

2. In which areas has Wal-Mart stumbled? Why? 3. Describe Wal-Mart’s business model? Does it meet the characteristics of a “winning

business model”? Does Wal-Mart demonstrate “Both/And” Leadership? Explain your reasoning.

Required Readings:

The Inexorable Rise of Wal-Mart? 1998-2016 HBS 9-716-426 “Both/And” Leadership by Smith, Lewis, and Tushman HBR R1605-D Why the Lean Start-Up Changes Everything by Steven Blank HBR R1305C How to Design a Winning Business Model by Ramon Casadesus-Masanell & Joan

Ricart HBR R1101G

Executive MBA ProgramFriday, November 10, 2017

1:10 a.m.– 4:30 p.m. Professor Campbell

Financial Analysis for M&A

This session will consist of a review of some finance concepts from Themes 2 and 3 and a discussion of the key components of financial analysis needed to assess and value a potential acquisition.

Background Reading: KGW introductory chapters (1-6)

Executive MBASaturday, November 11, 2017

8:50 a.m. - 12:10 p.m. Professor: Bhambri

Capabilities, Competitive Interaction, and Renewal

In this session, we will explore strategic interaction among organizations with different business models. We will also examine the role of systematically building capabilities as the foundation for sustaining competitive advantage. We will expand our discussion from Wal-Mart to include eBay and Amazon and use these three related cases to define the scope of business strategy.

Key topics:

Business Renewal Capabilities based strategy

Preparation Questions:

1. What were the key drivers of profitability in eBay’s initial business model?

2. What were the key drivers of profitability in Amazon’s initial retail business model? How does this retail business model interact with that of eBay?

3. As it shifted to a retail and platform business model, what challenges did Amazon face? What business choices were critical in altering the competitive dynamic?

4. As you read the article on Amazon in Economist (3-25-2017), how would you describe the underlying logic of Amazon’s growth strategy and business model?

5. What are the key capabilities developed by Amazon that are most critical to its growth strategy?

Advance Reading:

eBay, Inc. and Amazon.Com (A), HBS #9-712-405

Pipelines, Platforms, and the New Rules of Strategy, Van Alstyne, Parker, and Choudary R1604C

“Primed: Are investors too optimistic about Amazon?” Economist, March 25, 2017

Assignment #1: Distributed in class

Executive MBA ProgramSaturday, November 11, 2017

1:10 p.m. – 4:30 p.m. Professor Campbell

Focus on Shareholder ValueThe central tenant of modern corporate finance is that companies should focus on creating shareholder value. Of course, in practice, even if there is agreement that this is the appropriate objective, there is often disagreement about the best way to go about this. We will consider two case studies. The first case is about Apple. In 2013 Apple was considering whether to start paying significant dividends. Several investors were putting pressure on Apple to do so. Apple ultimately did start paying significant dividends and it borrowed money to do so despite having a very large bank balance. You can increase your understanding of basic finance concepts by evaluating Apple’s recent performance and how alternative ways to distribute cash would influence its future performance metrics.

The second case is the classic Gulf Oil case about a hostile takeover attempt in the 1980s. It raises issues that are always present in capital markets and they are especially present today. We will start by examining whether Gulf Oil, under the direction of Jimmy Lee, is destroying value. The question in the case is whether the policies being pursued by Gulf management could be changed in a way so as to add value to shareholders and thereby drive up the price of Gulf Oil stock. The case requires that you determine what price an acquirer should be willing to pay for Gulf and how that price can be justified. It should be obvious that the same issues that arose in the Gulf case 30 years ago are crucial for understanding today’s energy market. We link the Gulf Oil case to the current oil market by examining the recent presentation on fracking by David Einhorn from Greenlight Capital.

Assignment:Case: Financial Policy at Apple 2013 HBS 5-215-022Background Reading: KGW Chapter 9 Case: Gulf Oil Corporation, HBS 9-285-053David Einhorn, Greenlight Capital, slide deck on fracking, May 4, 2015, https://www.greenlightcapital.com/926698.pdfBackground Reading: KGW Chapters 7, 11 and 12

Executive MBA ProgramFriday, December 1, 2017

8:50 a.m. – 12:10 p.m. Professor Bhambri

Strategy Disruption

Theories of disruption have achieved widespread attention in recent years. In today’s session, we will discuss underlying theories of disruption and evaluate models of disruption in the context of two potentially disruptive companies. We will develop the theoretical basics of disruption and discuss from the perspective of both, the disrupting company and the potentially disrupted industry. In addition, we will discuss processes of strategy development that can lead to disruptive breakthroughs.

Case: Netflix in 2011 9-615-007Case: Airbnb: Business Model Development and Future Challenges W16782Reading: Reinventing your Business Model by Johnson, Christensen, Kagermann, R0812C

Case: Netflix in 2011 9-615-007

Questions:

1. How would you characterize the differences between Blockbuster’s and Netflix’s business models?

2. In what specific ways was Netflix disruptive? 3. How would you explain Blockbuster’s response?4. What strategy theories help explain and clarify the Blockbuster/Netflix landscape?5. Did Reed Hastings make the right move at the time of the case in trying to separate the

DVD-by-mail business from the streaming business?

Case: Airbnb: Business Model Development and Future Challenges W16782

Questions:

1. What is Airbnb’s business model?2. How has the industry evolved, and what are the major threats to Airbnb now?3. What should Airbnb do about its legal challenges and competitive threats? What are the

broader implications for the sharing economy?

Readings:Case: Netflix in 2011 9-615-007Case: Airbnb: Business Model Development and Future Challenges W16782Reading: Reinventing your Business Model by Johnson, Christensen, Kagermann, R0812CReading: Building a Winning Business Model Portfolio by P. Aversa, S. Haefliger, and D.G. Reza SMR 613

Executive MBA ProgramFriday, December 1, 2017

1:10 p.m. – 4:30 p.m. Professor Campbell

Leveraged Acquisitions

The main purpose of this session is to consolidate our understanding of the how to value a levered company. This is one of the most important and fundamental finance topics you are supposed to learn in any MBA program. This is the session where we try to make sure you have learned enough about how to do this that you can understand future transactions you see in the marketplace or ones you might actually be involved in. We will focus on two case studies. The first is about HCA, the largest hospital management company in the US, which went private via an LBO in 2006 and went public again in 2011. The case contains a valuation of HCA done at the time of the LBO. In the HCA case there are a variety of issues surrounding the strategy and management of HCA as well as the potential conflict of interest of some of the parties involves. We will discuss these issues to some degree, but this is not our primary focus. The basic question we will address is the valuation of HCA. The exhibits in the case contain a detailed valuation performed by the investment bankers. Our task will be to make sure we understand what they did and why. In addition, we will ask whether the approach taken in the valuation fully captures the strategy behind the private equity firms who acquired HCA. We will

also analyze the acquisition of Heinz by an investor group including Berkshire Hathaway (Warren Buffet). This case provides an interesting complement to the HCA case and it will help you solidify your understanding not only of how to value a levered company but also of the strategies pursued investors in highly levered companies.

Assignment:

Case Studies: HCA (A) and (B) and Heinz KEL848 Background Reading: KGW Chapters 8, 13 and 29“The Cost of Capital: Principles and Practice” UV6793 “Beta, Leverage and the Cost of Capital”, IES416

Executive MBA ProgramSaturday, December 2, 2017

8:50 a.m. – 12:10 p.m. Professor Bhambri

Industry and Strategy Evolution

Key to our understanding of competitive behavior is recognizing that competitive advantages change hands as industries evolve and the bases for advantage change. We will examine how external shocks and trends such as new technologies and competitive moves can fundamentally alter the competitive structure of industries, which in turn impacts competitive behavior. All market positions, no matter how well protected, are competed away and weakened over time. Learning to assess the implications of such changes on consumer preferences, price sensitivity, and buying behavior, and competitive market positions, early, is essential for strategic success. When Apple Inc. passed $600 billion in market valuation, it became the most valuable company in the history of the world, and it is now on the brink of possibly becoming the first trillion dollar company. Yet, a little less than 20 years ago, Apple was on the verge of bankruptcy. What can we learn about strategy from a company whose turnaround has been described as the most remarkable story in business history?

Key topics

Creation of competitive advantage in new businessesValue Creation versus Value CaptureIntegrating strategy and industry analysisFirst Mover and Second Mover AdvantagesCompeting with Platforms

Required Readings: Apple, Inc. in 2015 9-715-456

Why it pays to be a category creator by Eddie Yoon and Linda Deeken, HBR Reprint

Article: How Companies Become Platform Leaders, A. Gawer and M. Cusumano, SMR 268

Case Discussion Questions:

1) What was the nature of competition in the personal computer industry in the late 1970s? in the mid-1980s? in the early 1990s? at the end of the case? What factors explain the dramatic changes?

2) Historically, what were Apple’s competitive advantages? Evaluate Apple’s strategies at different phases of its history.

3) How does the evolution of iPod and iTunes differ from that of personal computers? Why? 4) How does the evolution of the iPhone and the app store differ from that of iPod and

iTunes? Why? 5) How is Apple under Tim Cook different from Apple under Steve Jobs? How does the

evolution of the iPhone and the app store differ from that of iPod and iTunes? Why? 6) What is your analysis of the prospects of the iWatch? Why?

Readings: Apple, Inc. in 2015 9-715-456

Why it pays to be a category creator by Eddie Yoon and Linda Deeken, HBR ReprintHow Companies Become Platform Leaders, A. Gawer and M. Cusumano, SMR 268

Executive MBA ProgramSaturday, December 2, 2017

1:10 p.m. – 4:30 p.m. Professor Campbell

Levered Acquisitions Continued

In this session we will continue our discussion of leveraged acquisitions. We will discuss the Sterling Household Products company. This is a comprehensive case which involves the choice of an appropriate financial structure, calculation of the appropriate cost of capital and the valuation of a levered acquisition target. This case gives you an opportunity to make sure your valuation skills have been effectively developed.

Assignment: Sterling Household Products, HBS 9-913-556

Executive MBA ProgramFriday, January 5, 2018

8:50 a.m. – 12:10 p.m. Professor Campbell

Options and Other Derivatives

This session will provide an introduction to options and futures contracts and their uses. An understanding of options is crucial for most practical real investment decisions. In addition, with the widespread use of options in compensation packages, a basic understanding of option pricing is now an essential skill for almost anyone in senior management, regardless of their specific area of expertise. In this session we will develop the basics of the definitions of options, futures and swaps. We will examine the determinants of option prices and introduce the Black-Scholes option pricing model. We will also discuss binomial option pricing. As you read RWJ you may find the material on option pricing a bit intimidating, particular as you try to come to grips with the Black-Scholes option pricing model. This model is based on some formidable mathematics. Fortunately, you don’t need to really understand the math to get the basic intuition of what is going on, nor do you need to understand the math to use the formula in a spreadsheet. A spreadsheet with the B-S formula loaded in it is provided (emailed) to you. We will go through the output from this spreadsheet in class. We will also go through a variety of examples of option positions and we will graph and compute their payoffs. This sort of exercise is the best way to get an understanding of both options and futures. Once we have done this, then I will try to explain how the Black-Scholes model works and how you can use it. Assignment:Reading: RWJJ Chapters 22 23 and 25 Spreadsheet: Black-Scholes Option PricingTeaching Note: “Introduction to Derivatives” Ivey 905 N13

Executive MBA ProgramFriday, January 5, 2018

1:10 p.m. - 4:30 p.m. Professor: Bhambri

Managing the Acquisition Process

Decision-making and Acquisitions

We will go deep into a discussion of a specific acquisition to understand organizational processes and how they affect decision-making. Specifically, we will discuss a case series that starts with a bid by Cadbury Schweppes to acquire Adams. We will follow up with an acquisition involving a private equity firm.

Case: Cadbury Schweppes: Capturing Confectionery (A) 9 708 453

After reading the A case:1) As a member of the Board of Cadbury Schweppes would you approve a

bid of more than $4 billion for Adams? Why? Why not?2) What is your view of the strategic justification and the challenges?3) What is your view of the organizational justification and the

challenges?

Case: Cadbury Schweppes: Capturing Confectionery (B) 9 708 454

After reading the B case:1. Do you agree with the methods used in the valuation calculations?

Are you more supportive of the bid after you review the detailed calculations? Why or why not?

Case: $19B 4 txt app WhatsApp ….omg!, HBS 9-715-441

Preparation questions:1. Do you agree with Facebook’s $22b purchase of WhatsApp? Why or why not?2. What analyses support your position? What assumptions are you making? What kind of

acquisition is this in terms of Christensen’s M&A Playbook?3. In terms of Christensen’s M&A Playbook, what types of acquisitions are most successful in

general? Why?

Readings:Cadbury Schweppes: Capturing Confectionery (A) 9 708 453Cadbury Schweppes: Capturing Confectionery (B) 9 708 454$19B 4 txt app WhatsApp ….omg!, HBS 9-715-441The New M&A Playbook C. Christensen, R. Alton, Curtis, A. Waldeck HBSP R1103B

Executive MBA ProgramSaturday, January 6, 2018

8:50 a.m. – 12:10 p.m. Professor Campbell

Option Pricing and Applications

In this session and the next we will continue our discussion of derivatives. We will focus on the pricing of options. We will explore the Black/Scholes option pricing model and see how to price stock options in executive compensation packages. We will briefly examine binomial option pricing. Finally, we will discuss how the growth of options and the advent of modern option pricing has influenced corporate finance.

Assignment:Case: “Valuing Stock Options in a Compensation Package” HBS 9-914-517

Executive MBA ProgramSaturday, January 6, 2018

1:10 p.m. - 4:30 p.m. Professor: Bhambri

Building Capabilities through Strategic Alliances

While some companies develop capabilities in house, many companies, regardless of size, partner to develop and leverage capabilities. In this session, we will look at the imperatives, benefits, and challenges of global alliances and other capability building partnerships and acquisitions.

Key topics:

Key Success Factors in Strategic AlliancesDifferent types of alliancesEvolution of strategic alliancesCapability acquisition

Case: Bharti: Flying on the Wings of Others (A) IMD-3-1115

Questions:

1. If you were leading the negotiations for Bharti, what would be your position? What is your strategic goal? What would you compromise? What would you hold firm? What alternatives should you consider? Analyze the logic of your position clearly.

2. If you were leading the negotiations for BT, what would be your position? What is your strategic goal? What would you compromise? What would you hold firm? What alternatives should you consider? Analyze the logic of your position clearly.

Readings:

Case: Bharti: Flying on the Wings of Others (A) IMD-3-1115Reading: When to Borrow via Alliance: Alliance Versus Acquisition, L. Capron & W. Mitchell, HBSP 9500BC

In-class quiz or worksheet

Executive MBA ProgramFriday, January 19, 2018

8:50 a.m. – 12:10 p.m. Professor: Bhambri

Corporate Strategy: Managing Multiple Businesses

So far, most of our discussions have focused on business unit strategy as opposed to corporate level strategy. Whereas business strategy focuses on the question of how to compete, corporate strategy focuses on which businesses to compete in and the extent and type of coordination across businesses. Today, we will focus first on Danaher Corp., a company with a remarkable record and a disciplined process for managing a diversified collection of businesses. We will then move to an emerging group of companies that might be called the new conglomerates, companies that are the hub of eco-systems and companies where the glue

comes through digital infrastructure. To explore these topics, we will look at Alibaba, a very different company from Danaher.

Topics:

Acquisition processesValue added in acquisitionsIntegration across BusinessesParenting AdvantageDifferent corporate models

1. Case: Danaher Corporation #9-708-445 (revised November 30, 2015)

Questions:

1. What is Danaher’s acquisition process? Is it a sustainable process?1. If you are a business unit manager, what is the value that you get from being part of

Danaher? What are the disadvantages that you face?2. If you were managing a firm, would you rather compete against a division of a

conglomerate like Danaher or an independent firm? Explain your answer.3. If you were an investor, would you rather invest in a firm that competes in only one

business or a firm that competes in many businesses?4. What seem to be the current trends driving conglomerates?

Case: Alibaba Group: Fostering an E-Commerce Ecosystem # W16858

Questions:

1. How would you characterize Alibaba’s growth strategy over time?2. What strategic and managerial challenges did Alibaba face in managing growth? What

was the role of corporate management in managing growth?3. What do you foresee as potential challenges for Alibaba in its future growth?

Readings:

Case: Danaher Corporation #9 708 445Alibaba Group: Fostering an E-Commerce Ecosystem # W16858Reading: Corporate Strategy – module note 9-713-415Reading: Avoiding the dinosaur trap, Economist, May 31, 2014Reading: Return of the giants, Economist, November 21, 2012Reading: From dodo to phoenix, Economist, January 11, 2104

In-class quiz or worksheet

Executive MBA ProgramFriday, January 19, 2018

1:10 a.m. – 4:30 p.m. Professor Campbell

Value Creation With Options

In this session we will continue our examination of derivatives. First, we will explore the use of convertible preferred stock in financing entrepreneurial companies. This will give us an opportunity to discuss why preferred and convertible preferred securities are commonly used to finance entrepreneurial companies. Some readings on this topic are provided. Second, we will examine the use of a derivative security in an acquisition.

Assignment:Cases: “Term Sheet Negotiations for Trendsetter, Inc.” HBS #9-801-358“Sanofi Acquisition of Genzyme” UV6871Readings entrepreneurial finance: “A Note on Private Equity Securities”, Lerner and Hardymon,

HBS #9-200-027,“The Basic Venture Capital Formula”, Sahlman, HBS #9-804-042“Risk and Reward in Venture Capital”, Sahlman, HBS #N9-811-036

Executive MBA ProgramSaturday, January 20, 2018

8:50 a.m. – 12:10 p.m. Professors Bhambri and Campbell

Evaluating a Deal

In this session, we will review two theme 8 reports prepared by last year’s EMBA class and we will examine an entrepreneurial venture in the energy industry.

Assignment:

8:50 am – 10:20 amCase Study:

1. Microsoft/LinkedIn: Chieppa, Dustin; Constant, Michelle; Ping, Justin; Purcell, Marc; Stewart, Simeon; Stockhausen, Peter

2. Microsoft/LinkedIn: Andrews, Charity; Andrews, Nathan; Dutta, Neil; Kight, Steven; Kwon, Shally; Saraf, Vikram; Zumba, Julia

For the first session, the two teams who prepared reports on Microsoft/LinkedIn will attend class as guest speakers and will share the key points of their reports and also their suggestions on how your can make your project a successful experience. Please review the reports in advance.

10:40 am – 12:10 pm Case Study: Tesla/Solar City and Pace Funding Group

Background Reading: KGW Chapters 26 and 27

Executive MBA ProgramSaturday, January 20, 2018

1:10 p.m. – 4:30 p.m. Professors Bhambri and Campbell

Project Workshop

In this session you are to work on your “valuation projects” in your teams. This provides an opportunity for faculty to meet with each team (in addition to any meetings outside of class) and discuss the progress in preparing for the project presentation.

Executive MBA ProgramFriday, February 2, 2018

1:10 p.m. - 4:30 p.m. Professor: Bhambri

Transformation and Renewal

Many cases that we study describe success outcomes (or failures) in retrospect. What are the processes that lead to these outcomes? Why are some companies able to develop creative strategies while others are not? One of the most recognized leaders of the past century is Jack Welch. For our last session, we will use a case on GE under Jack Welch and look at its process of transformation. We will also look at his successor, Jeff Immelt.

Key topics

Phases in strategic transformationDifferent types of transformationManaging the context

Case: GE’s Two Decade Transformation: Jack Welch’s Leadership # 9 399 150Case: Leading Transformation by Immelt, Gulati, Prokesch HBR R1705B

Questions:

1. What were Welch’s early decisions as CEO? What impact did they have?2. What are the different phases that you see during Welch’s two decades at GE’s helm?

Is there a pattern that you can generalize?3. What legacy did Welch leave for Jeff Immelt?4. What is your assessment of Immelt’s transformation? Why has GE’s stock price

languished during his tenure?

Readings:

Case: GE’s Two Decade Transformation # 9 399 150 Case: Leading Transformation by Immelt, Gulati, Prokesch HBR R1705B Case: Man Jit Singh at Sony Entertainment Television (A) HBSP 414 028

We are tentatively scheduled for Man Jit Singh to visit class for a presentation and Q&A with the class. I will confirm closer to the class date.

Case: Man Jit Singh at Sony Entertainment Television (A) HBSP 414 028Questions:

1. What are the challenges that Man Jit Singh faced at Multi Screen Media? 2. What is your assessment of the key actions Singh has taken?3. What recommendations would you make to him?

Readings:

Case: GE’s Two Decade Transformation # 9 399 150 Case: Leading Transformation by Immelt, Gulati, Prokesch HBR R1705B Case: Man Jit Singh at Sony Entertainment Television (A) HBSP 414 028

Executive MBA ProgramSaturday, February 3, 2018

1:10 p.m. - 4:30 p.m. Professor: Bhambri

New Executives and Taking Charge

Today, we will look at a short case, Mega Corporation, in which I will ask you to put yourself in the role of Tom Rice, the newly appointed CEO of Mega Corp, and ask, “if you were appointed to lead a new business, what would you do?” We will use today’s session to pull together much of what we have covered in themes 4 and 8.

Case: Mega Corporation (A)

Questions:

1. If you were Tom Rice, what would you do? On the first day? In the first week? In the first month?

Readings:

Case: Mega Corporation (A) (USC case)Reading: When New CEOs Succeed and Fail, Greiner, Cummings & Bhambri, Organizational Dynamics, 2003

Theme 8 Strategy Wrap-up

Take home case exam distributed today, due Monday, March 13, before 10 am.

Executive MBA ProgramFriday, February 16, 2018

1:10 p.m. – 4:30 p.m. Professor CampbellM&A Market and Practices

This session will be presented by a guest speaker. Paul Weisbrich is Managing Director of DA Davidson & Company. He has many years of experience as an investment banker arranging mergers and acquisitions. He is an EMBA alum (class 3).

Executive MBA ProgramSaturday, February 17, 2018

8:50 a.m. – 1:10 p.m. Professor Bhambri

Executive MBA ProgramSaturday, February 17, 2018

1:10 p.m. – 4:30 p.m. Professor Campbell Turnarounds and Disruption

This session will be presented by a guest speaker, TBA.

Executive MBA ProgramFriday, March 2, 2018

8:40 a.m. – 4:30 p.m. Professors Bhambri and Campbell

TOPIC: Project Presentations

Case #1 Topic to be announced

Case #2 Topic to be announced

Case #3 Topic to be announced

Case #4 Topic to be announced

Executive MBA ProgramSaturday, March 3, 2018

8:50 a.m. - 12:10 p.m. Professors Bhambri and Campbell

TOPIC: Project Presentations

Case #5 Topic to be announced

Case #6 Topic to be announced

Executive MBA ProgramSaturday, March 3, 2018

1:10 p.m. – 4:30 p.m. Professors Bhambri and Campbell

Guest Speaker

Ravi Sawhney, founder/CEO of award winning firm, RKS Design, and founder/CEO of LoanGifting.Com.

Case: RKS Guitars HBS #507 003

Campbell Theme 8 materials to be ordered from HBS:Financial Policy at Apple 2013 HBS 5-215-022Gulf Oil Corporation, HBS 9-285-053HCA (A) and (B) and Heinz KEL848“The Cost of Capital: Principles and Practice” UV6793 “Beta, Leverage and the Cost of Capital”, IES416“Introduction to Derivatives” Ivey 905 N13 “Valuing Stock Options in a Compensation Package” HBS 9-914-517“Term Sheet Negotiations for Trendsetter, Inc.” HBS #9-801-358“Sanofi Acquisition of Genzyme” UV6871“A Note on Private Equity Securities”, Lerner and Hardymon, HBS #9-200-027,“The Basic Venture Capital Formula”, Sahlman, HBS #9-804-042“Risk and Reward in Venture Capital”, Sahlman, HBS #N9-811-036 “Sterling Household Products Company”, Fruhan, HBS, 9-913-556

Please also order, but do not distribute: “Landmark Facility Solutions”, 9-915-527

Bhambri theme 8 materials to be ordered from HBS except where indicated:

The Inexorable Rise of Wal-Mart? 1998-2016 HBS 9-716-426

“Both/And” Leadership by Smith, Lewis, and Tushman HBR R1605-D

Why the Lean Start-Up Changes Everything by Steven Blank HBR R1305C

How to Design a Winning Business Model by Ramon Casadesus-Masanell & Joan RicartHBR R1101G

eBay, Inc. and Amazon.Com (A), HBS #9-712-405

Pipelines, Platforms, and the New Rules of Strategy, Van Alstyne, Parker, and Choudary R1604C

“Primed: Are investors too optimistic about Amazon?” Economist, March 25, 2017 (From Economist Magazine)

Netflix in 2011 9-615-007Airbnb: Business Model Development and Future Challenges W16782Reinventing your Business Model by Johnson, Christensen, Kagermann, R0812C Building a Winning Business Model Portfolio by P. Aversa, S. Haefliger, and D.G. Reza SMR 613

Apple, Inc. in 2015 9-715-456

Why it pays to be a category creator by Eddie Yoon and Linda Deeken, HBR ReprintHow Companies Become Platform Leaders, A. Gawer and M. Cusumano, SMR 268

Cadbury Schweppes: Capturing Confectionery (A) 9 708 453Cadbury Schweppes: Capturing Confectionery (B) 9 708 454$19B 4 txt app WhatsApp ….omg!, HBS 9-715-441The New M&A Playbook C. Christensen, R. Alton, Curtis, A. Waldeck HBSP R1103BBharti: Flying on the Wings of Others (A) IMD-3-1115

When to Borrow via Alliance: Alliance Versus Acquisition, L. Capron & W. Mitchell, HBSP 9500BC

Danaher Corporation #9 708 445 (revised 2015)Alibaba Group: Fostering an E-Commerce Ecosystem # W16858Corporate Strategy – module note 9-713-415Avoiding the dinosaur trap, Economist, May 31, 2014Return of the giants, Economist, November 21, 2012From dodo to phoenix, Economist, January 11, 2104Microsoft-LinkedIn reports from 2016-2017 (USC)

GE’s Two Decade Transformation # 9 399 150

Leading Transformation by Immelt, Gulati, Prokesch HBR R1705B Man Jit Singh at Sony Entertainment Television (A) HBSP 414 028RKS Guitars HBS #507 003

USC materials:

Microsoft-LinkedIn reports from 2016-2017Mega Corporation (A) (USC case)When New CEOs Succeed and Fail, Greiner, Cummings & Bhambri, Organizational Dynamics, 2003

Make copies of but DO NOT distribute Mega B, C, D. These will be distributed in class on Saturday, February 3, 2018.