UT Dallas Syllabus for ba4305.501.11f taught by Ngah Lim (nxl091000)

8/6/2019 UT Dallas Syllabus for ba4305.501.11f taught by Ngah Lim (nxl091000)

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Course Syllabus BA 4305 Strategic Management Page 1

Course Syllabus BA4305 Strategic Management

Course Information

Course Number/Section BA 4305-003/004/501Course Title Strategic Management

Term Fall 2011Days & Times (Room #) Monday &Wednesday 11:30-12:45 PM (SOM 2.801)

Monday &Wednesday 01:00-02:15 PM (SOM 2.801)Monday &Wednesday 05:30-6:45 PM (SOM 2.116)

Professor Contact Information

Professor Elizabeth Lim, Ph.D.Office Phone 972-883-2298Office Location SOM 4.403Office Hours Mondays and Wednesdays 9:00 -9:45 AMOther Information Please email me through eLearning only.

Course Pre-requisites, Co-Requisites, and/or Other Restrictions

Co-requisite: BA 4371Pre-requisites: BA 3311, BA 3341, BA 3351, BA 3352, BA 3361, BA 3365 and STAT 3360 orBA 3360

Course Description

The strategic management course has been designated a capstone course in business. The purposeof a capstone course is to integrate the learning achieved in individual business courses,including finance, accounting, operations, MIS, marketing, and organizational behavior to study

the strategic management of the firm as well as the responsibilities of the general manager.

This course serves as an introduction to the strategic management process of organizations. Thestrategic management process is defined as the full set of commitments, decisions, and actionsrequired for a firm to achieve a competitive advantage and earn above-average returns. In thiscourse we will identify, describe, and illustrate the concepts and frameworks required toundertake a strategy analysis, analyze and appraise business, corporate, international, acquisition,restructuring, and cooperative strategies, as well as recognize the issues associated withimplementing strategies including corporate governance. We will also briefly touch upon issuesrelevant to the modern organization such as sustainability, social, and ethical responsibility anddiversity. Our viewpoint will be that of the general manager who has responsibility for the long-term viability of the firm.

This course is primarily aimed at providing you with the frameworks for understanding thedifferent parts of the strategic management process. The frameworks are targeted at promoting asystematic and rational approach to understanding strategy. In the first few classes, we will usethese frameworks to map the environment surrounding the firm, analyze the competitive situationfacing the firm, and understand the sources of competitive advantage that lie within the firm.Thereafter, the focus will shift to models of business, corporate, and international strategy.Finally, we will cover the issues associated with implementing strategy such as corporategovernance.


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The second goal of this course is application-oriented, that is to effectively apply the conceptualframeworks to business situations, case studies, and writing up a major research paper. Thiscourse will improve your application skills by analyzing case studies from a wide variety ofindustries, engaging in class discussions, and performing individual company analyses. Theseexercises will give you hands-on experience using the tools and approaches discussed in class.

For the class to work well, and for you to benefit from it, attendance and preparation for eachclass meeting is essential.

Student Learning Objectives/Outcomes

After completing this course you should be able to:-

1. Complete an external and internal analysis of a firm2. Identify the strategic problems of a firm3. Develop solutions to a firms strategic issues4. Integrate skills acquired in finance, accounting, marketing, and MIS courses to create a

successful firm strategy

Course Requirements

This course requires extensive reading, writing, active discussions, and diligent attention to theexercises. Each student will be expected to spend an average of 4 hours a week on this course inaddition to class time. This is particularly true during the first few weeks of the class. If a studentcannot commit this amount of time and effort on this course, he or she must realize that it may bevery difficult to earn a good grade. Failure to fully prepare for class is also detrimental to onesfellow students. It is the students responsibility to thoroughly read the syllabus, fully understandall the requirements, and keep track of all the important dates in order to succeed.

Course Format

I have designed this course to promote the objectives described above. The structure of thiscourse will be a combination of lectures, class discussions, group case analyses, and an individualresearch paper due at the end of the semester. Monday classes are designated as lecture and/ordiscussion sessions; the purpose of each class is to equip you with the models, frameworks, andapproaches and raise your awareness of the issues associated with each topic. Classes will be veryinteractive, drawing on everyones experiences and insights as much as possible.

The first Wednesday class (August 24) will serve as a course introduction, but generally,Wednesday classes will be designated as case discussions and analyses. For the most part, thecases are used to apply the concepts and approaches covered in the Monday class to actualbusiness situations. Each week (with the exceptions of the first and second weeks), you will be

required to read one chapter and one case.

Required Textbook and Materials

Hitt, Ireland, and Hoskisson. 2010. Strategic Management, Competitiveness andGlobalization: Concepts and Cases, Thompson, Southwestern (Ninth Edition)

**Textbook is available in the UTD Bookstore**


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Business News Sources

Business Week (www.businessweek.com)

The Wall Street Journal (www.wsj.com)

Financial Times (www.ft.com)

Forbes (www.forbes.com)

Fortune (http://money.cnn.com/magazines/fortune)Fast Company (www.fastcompany.com)

Reuters (www.reuters.com)

Bloomberg (www.bloomberg.com)

CNN Money (http://money.cnn.com/)

MSNBC (http://www.msnbc.msn.com/id/3032072/)

Business Wire (http://home.businesswire.com/)

Yahoo Finance (http://finance.yahoo.com/)

Course Assessment

Broadly, your progress in this course will be assessed using four key components:

Exams (Midterm & Final) 50% = 200 pointsGroup Oral Case Presentation 20% = 80 pointsIndividual Major Research Paper 20% = 80 pointsClass Participation 10% = 40 points

--------------------------Total 100% = 400 points

--------------------------

Grading Policies

Grading and evaluation of the above course components are detailed below. The weightedaverage score calculated from the above components is converted into a grade as follows:-

Score Grade

97 - 100 A+

94 -


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(1) Exams (50% of Course Grade)Midterm Exam (25% of Course Grade)

The in-class midterm exam will take place on October 5, 2011. This quiz will test yourunderstanding and knowledge of the first five chapters of the textbook. These five chapters coverstrategy analysis, business-level strategy, and competitive rivalry and dynamics. The questions

will be multiple-choice questions. The purpose of this quiz is to ensure that you are adequatelyfamiliar with the foundational topics of this course. This exam will test class powerpoint slides,class discussion, case studies, and textbook chapters. The exam will be closed book and notes.The key to doing well will be keeping up with the readings. Negative marking does not apply.Make-ups will only be granted under extenuating circumstances. Official documentations arerequired for make-ups. For example, a doctors note is required if a student is not able to take theexam due to medical reasons.

Final Exam (25% of Course Grade)

The final examination will take place on November 30, 2011. While the mid-term examination isgeared toward gauging your conceptual knowledge of different types of strategies, the goal of thefinal will be to demonstrate your understanding of strategy implementation. This exam will test

class powerpoint slides, class discussion, case studies, and textbook chapters. The finalexamination will be non- cumulative, and will cover course materials covered after the midtermexamination. The exam will be closed book and notes. The key to doing well will be keeping upwith the readings. Negative marking does not apply. Make-ups will only be granted with writtenpermission from the Office of the Dean of Students.

(2) Group Oral Case Presentation (20% of Course Grade)In the second week, I shall dedicate some class time for students to form their own teams. Eachteam should have about two to four students. Each group will be responsible for making one oralpresentation of a case analysis. I will also allow teams to pick their own cases and case questionson a first-come-first-serve basis. A list of case discussion questions are appended to this course

outline (pages 12-14). We will cover eight cases in this course, each listed on pages 12-14. I willcover the first case Ford.

The presenting group will play a leading role in our discussion by outlining what they think arethe central issues confronting the company, analyzing these issues, and presenting the results oftheir analysis to the class. It is the responsibility of the presenting group to lead a furtherdiscussion of the case involving the rest of the class. Each group is also to generate somediscussion issues for the class and conduct further to-date research on the case. The case analysisshould address the questions as listed in the case question guide and offer recommendations forfuture action. It is the responsibility of the group, not the instructor, to organize their group suchthat a rigorous case analysis is submitted to the correct location and within the prescribeddeadline.

A soft copy of the presentation slides should be emailed to me before class. In addition, a hardcopy of the presentation slides must be submitted at the beginning of class on the day of therelevant case class. Your case presentation schedule is included in the class schedule (seepage 11). Two teams will work on the same case but on different questions (see pages 12-14).Each team will have about 30-35 minutes to complete your presentation on Wednesday useyour time wisely. Appendix A details the grading criteria for your group oral presentation.


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Each group member should participate equally during the case presentation. This is veryimportant. I do not want one or two members of the group to dominate the case presentation. Inorder for your team to do well, each member must be actively involved in the research,discussion, and preparation of the case presentation. Failure to participate hurts both you andyour other team members. Thus, there is little tolerance for free riding. It is primarily yourresponsibility to eliminate free riding and ensure that team members participate. The incentive

alignment mechanism will be the peer evaluation at the end of the course. Individual memberswho have not contributed to the group effort will have the final grade for the presentationadjusted to reflect their actual contribution level. Bonus points may potentially be awarded for thebest case presentation.

I am particularly interested in your ability to identify the relevant issues, apply the integrativetools in this course, and persuasively articulate innovative but realistic recommendations. Youmay be familiar with the actual outcome of the firms dilemma. This should not bias yourresponse because their decision does not validate or invalidate your action plan. Attempts to becreative will be rewarded, however they must be reasonable, logical, fully supported (i.e., dontassume I know what you mean) and well-developed (i.e., think through the implications of yourrecommendations). However, mere creativity is not sufficient. You must make it clear that you

have grasped the concepts of this course.

NOTE: A real business environment does not generally pose clear questions or answers.Managers rarely know whether they have made the right strategic decisions. Strategy casessimulate this ambiguity. As such, there are no correct solutions to the case that you will undertaketo analyze and I will offer none, although I will provide my opinion about the logic and rationaleyou exercised in reaching your conclusions. Therefore, the most important aspect of this course isthe quality of your questions and answers, and the quality of your thought processes. Also, yourability to communicate your logic and respond to questions about your analyses andrecommendations is important.

(3) Individual Research Paper (20% of Course Grade)See Appendix B for details. Extensions will only be granted under extenuating circumstances.Official documentations are required if an extension is requested. For example, a doctors note isrequired if a student is not able to submit the paper due to medical reasons.

(4) Class Participation (10% of Course Grade)Class Attendance: Class attendance is part of the learning process. I will therefore monitor yourattendance every day. Although you will not be graded on your class attendance, you cannotparticipate in class discussions if you do not attend class. Since your class participation is worth10% of your course grade, I strongly encourage you to take class attendance seriously.

Class Participation:Strategic thinking and analysis is best learned through practice. The cases wewill study are about real world business situations; they are an opportunity to both apply the

concepts we discuss in class as well as further develop our ability to think about business strategy.How much you get out of a case depends on your preparation and active participation. Please readthe handout How to Prepare an Effective Case Analysis (will be available on eLearning) prior toanalyzing cases.

Each student is expected to effectively participate in Monday class discussions (worth 5% of yourcourse grade) and Wednesday case discussions (worth 5% of your course grade) - comment,


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question, argue, and analyze. Class participation provides an opportunity to developcommunication skills - in presenting a point of view and in listening. In many ways, these skills areas valuable as the "analytical frameworks" to be discussed during the course. Case preparationinvolves identifying the key issues, problems, and opportunities facing the manager; identifying andevaluating alternative solutions; and proposing and supporting your recommended course of actionwith qualitative and quantitative information.

The most common way to contribute to class learning is through contributing to the discussion.Fundamentally, a good contribution involves presenting a clear opinion, expressing it civilly, andsupporting the opinion. In addition, we all have the responsibility to create an environment whereeach member of the class feels comfortable offering his or her opinion; thus, knowing how tolisten is also important. Please note that simply attending class contributes minimally to classlearning. Again, your class participation grade will depend upon your active participation indiscussions, NOT on class attendance.

Class participation will be graded based on the quantity and quality of contributions to the classdiscussions. With regard to quality, some of the following criteria normally applied are:-

Are the points that have been made relevant to the discussion? Are the points simple recitations of case facts, or have new implications been drawn? Is there evidence of analysis rather than mere expression of opinions? Are the comments linked to those of others? Did the contribution further the class understanding of the issue?

Final Grade

Following the universitys guideline for grade distribution, the final grade of a student will bebased on the relative standing of his or her total credit points accumulated from all therequirements as compared with the rest of the class. In compliance with the universitys policy ofconfidentiality, no grade information will be transmitted via phone or e-mail.

Miscellaneous Course Policies and Extra Credit Opportunities

Peer evaluation: Given that some component of your course grade will come from group work, itis very important that each member contributes fairly toward the work. To prevent free riding Ihave introduced the final peer evaluation. After all groups have completed their last assignment,each member individually submits a final peer evaluation. Individual grades can fluctuate asmuch as a letter grade (up or down) based on how much you have contributed to the success ofyour group.

Class Participation: Participation is highly encouraged. This is a course that stresses activelearning. Just as you dont learn Karate from a how to book, you wont master the strategy

material by passively sitting back like a wallflower. Additionally, participation satisfies animportant communication objective of the class. Therefore, please read, understand, and preparethe assigned cases, as well as offer insights during class discussions; what you get out of thiscourse will be directly related to what you put into it. I will award extra course credit to thosewho make ongoing contributions to class discussions at the end of the semester.

Extra Credit: There will be additional opportunities to gain extra course credit. In the firstinstance, every student will have the opportunity to gain 5 points of extra course credit at somepoint throughout the semester by answering questions related to the lecture material at the


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beginning of class. At the start of each Monday lecture (excluding the first) I will review thecurrent weeks material by asking two questions. I will nominate a student randomly to answerthe question. If the question is answered correctly extra credit will be awarded. This mechanismprovides an incentive for you to prepare for class by reading the lecture materials in advance.

I will also sometimes post interesting hot-off-the-press business articles on eLearning throughout

the semester. Each student will have the opportunity to obtain 5 points of extra credit per articleby discussing how each article relates to the lecture topic on the eLearning discussion forum.

In addition, each student will have the opportunity to earn 10 points of extra credit by satisfyingtwo requirements. The first requirement is to present a brief (~5-10 minutes) in-class report of acurrent business story relating to the topic we are discussing in any particular week. These storieswill be presented in our Wednesday class. The second requirement is to provide a one-pagedouble-spaced analysis of your company/business story that relates to the strategy topics/conceptswe discussed in our Tuesday class. NOTE:- I am looking for analytical thinking that ties yourstory to what we covered in class, not regurgitation of a business story that you picked up fromother sources.

Important Notes

Throughout the semester, each student is expected to follow the universitys guideline on studentconduct with regard to cheating and other dishonorable behaviors. Severe consequences canoccur if such rules are not followed. The instructor also reserves the right to deduct from astudents individual class participation credit if the student has shown severe non-constructivebehavior in class (such as disrupting the class or abusing another individual), in addition to otherdisciplinary actions. If a student is absent or late to a class meeting, it will be his or herresponsibility to catch up with all the missed materials including any announcements made whilethe student was absent. No make-up exams or lectures will be given. It will also be the studentsresponsibility to accept any consequences that may result from absences. No late assignments willbe accepted. Finally, it is a students responsibility to read the syllabus thoroughly and regularly

and keep track of all the important dates and requirements every week. Experience shows that theanswer for most questions that students ask can in fact be found in the syllabus.

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have rules and regulationsfor the orderly and efficient conduct of their business. It is the responsibility of each student andeach student organization to be knowledgeable about the rules and regulations which governstudent conduct and activities. General information on student conduct and discipline iscontained in the UTD printed publication, A to Z Guide, which is provided to all registeredstudents each academic year.

The University of Texas at Dallas administers student discipline within the procedures ofrecognized and established due process. Procedures are defined and described in the Rules andRegulations, Series 50000, Board of Regents, The University of Texas System, and in Title V,Rules on Student Services and Activities of the universitysHandbook of Operating Procedures.Copies of these rules and regulations are available to students in the Office of the Dean ofStudents, where staff members are available to assist students in interpreting the rules andregulations (SU 1.602, 972/883-6391) and online athttp://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-HOPV.html
http://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-HOPV.htmlhttp://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-HOPV.html


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A student at the university neither loses the rights nor escapes the responsibilities of citizenship.He or she is expected to obey federal, state, and local laws as well as the Regents Rules,university regulations, and administrative rules. Students are subject to discipline for violatingthe standards of conduct whether such conduct takes place on or off campus, or whether civil orcriminal penalties are also imposed for such conduct.

Academic Integrity

The faculty expects from its students a high level of responsibility and academic honesty.Because the value of an academic degree depends upon the absolute integrity of the work done bythe student for that degree, it is imperative that a student demonstrates a high standard ofindividual honor in his or her scholastic work.

Scholastic Dishonesty, any student who commits an act of scholastic dishonesty is subject todiscipline. Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion,submission for credit of any work or materials that are attributable in whole or in part to anotherperson, taking an examination for another person, any act designed to give unfair advantage to astudent or the attempt to commit such acts.

Plagiarism, especially from the web, from portions of papers for other classes, and from any othersource is unacceptable and will be dealt with under the universitys policy on plagiarism (seegeneral catalog for details). This course will use the resources of turnitin.com, which searches theweb for possible plagiarism and is over 90% effective.

Copyright Notice

The copyright law of the United States (Title 17, United States Code) governs the making ofphotocopies or other reproductions of copyrighted materials, including music and software.Copying, displaying, reproducing, or distributing copyrighted works may infringe the copyrightowners rights and such infringement is subject to appropriate disciplinary action as well as

criminal penalties provided by federal law. Usage of such material is only appropriate when thatusage constitutes fair use under the Copyright Act. As a UT Dallas student, you are required tofollow the institutions copyright policy (Policy Memorandum 84-I.3-46). For more informationabout the fair use exemption, see http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any college-levelcourses. These dates and times are published in that semester's course catalog. Administrationprocedures must be followed. It is the student's responsibility to handle withdrawal requirementsfrom any class. In other words, I cannot drop or withdraw any student. You must do the properpaperwork to ensure that you will not receive a final grade of "F" in a course if you choose not to

attend the class once you are enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Services and Activities,of the universitysHandbook of Operating Procedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other fulfillmentsof academic responsibility, it is the obligation of the student first to make a serious effort to
http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htmhttp://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm


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resolve the matter with the instructor, supervisor, administrator, or committee with whom thegrievance originates (hereafter called the respondent). Individual faculty members retainprimary responsibility for assigning grades and evaluations. If the matter cannot be resolved atthat level, the grievance must be submitted in writing to the respondent with a copy of therespondents School Dean. If the matter is not resolved by the written response provided by therespondent, the student may submit a written appeal to the School Dean. If the grievance is not

resolved by the School Deans decision, the student may make a written appeal to the Dean ofGraduate or Undergraduate Education, and the deal will appoint and convene an AcademicAppeals Panel. The decision of the Academic Appeals Panel is final. The results of the academicappeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean ofStudents, where staff members are available to assist students in interpreting the rules andregulations.

Incomplete Grade Policy

As per university policy, incomplete grades will be granted only for work unavoidably missed at

the semesters end and only if 70% of the course work has been completed. An incomplete grademust be resolved within eight (8) weeks from the first day of the subsequent long semester. If therequired work to complete the course and to remove the incomplete grade is not submitted by thespecified deadline, the incomplete grade is changed automatically to a grade ofF.

Disability Services

The goal of Disability Services is to provide students with disabilities educational opportunitiesequal to those of their non-disabled peers. Disability Services is located in room 1.610 in theStudent Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday andWednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:The University of Texas at Dallas, SU 22PO Box 830688Richardson, Texas 75083-0688(972) 883-2098 (voice or TTY)[email protected]

If you anticipate issues related to the format or requirements of this course, please meet with theCoordinator of Disability Services. The Coordinator is available to discuss ways to ensure yourfull participation in the course. If you determine that formal, disability-related accommodationsare necessary, it is very important that you be registered with Disability Services to notify them ofyour eligibility for reasonable accommodations. Disability Services can then plan how best to

coordinate your accommodations.

It is the students responsibility to notify his or her professors of the need for such anaccommodation. Disability Services provides students with letters to present to faculty membersto verify that the student has a disability and needs accommodations. Individuals requiringspecial accommodation should contact the professor after class or during office hours.
mailto:[email protected]:[email protected]


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Email Use

The University of Texas at Dallas recognizes the value and efficiency of communication betweenfaculty/staff and students through electronic mail. At the same time, email raises some issuesconcerning security and the identity of each individual in an email exchange. The universityencourages all official student email correspondence be sent only to a students U.T. Dallas email

address and that faculty and staff consider email from students official only if it originates from aUTD student account. This allows the university to maintain a high degree of confidence in theidentity of all individual corresponding and the security of the transmitted information. UTDfurnishes each student with a free email account that is to be used in all communication withuniversity personnel. The Department of Information Resources at U.T. Dallas provides a methodfor students to have their U.T. Dallas mail forwarded to other accounts.

Technical Support

If you experience any problems with your UTD account you may send an email to:[email protected] or call the UTD Computer Helpdesk at 972-883-2911.

Field Trip Policies / Off-Campus Instruction and Course Activities

Off-campus, out-of-state, and foreign instruction and activities are subject to state law andUniversity policies and procedures regarding travel and risk-related activities. Informationregarding these rules and regulations may be found at the website addresshttp://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional information isavailable from the office of the school dean.

Religious Holy Days

The University of Texas at Dallas will excuse a student from class or other required activities forthe travel to and observance of a religious holy day for a religion whose places of worship are

exempt from property tax under Section 11.20, Tax Code, Texas Code Annotated.

The student is encouraged to notify the instructor or activity sponsor as soon as possibleregarding the absence, preferably in advance of the assignment. The student, so excused, will beallowed to take the exam or complete the assignment within a reasonable time after the absence: aperiod equal to the length of the absence, up to a maximum of one week. A student who notifiesthe instructor and completes any missed exam or assignment may not be penalized for theabsence. A student who fails to complete the exam or assignment within the prescribed periodmay receive a failing grade for that exam or assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose ofobserving a religious holy day] or if there is similar disagreement about whether the student has

been given a reasonable time to complete any missed assignments or examinations, either thestudent or the instructor may request a ruling from the chief executive officer of the institution, orhis or her designee. The chief executive officer or designee must take into account the legislativeintent of TEC 51.911(b), and the student and instructor will abide by the decision of the chiefexecutive officer or designee.
mailto:[email protected]://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htmhttp://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htmmailto:[email protected]


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FALL 2011 CLASS SCHEDULEThe Professor reserves the right to make changes to the syllabus and schedule as needed

throughout the course of the semester.

DATE/DAY TOPIC READING ASSIGNMENTS

August 24 (Wed) Introduction to Course Syllabus

Section 1Principles of Strategy AnalysisAugust 29 (Mon) Strategic Management & Competitiveness TEXT: Chapter 1

August 31 (Wed) Analyzing the External Environment TEXT: Chapter 2

September 5 (Mon) Labor Day (No Class)

September 7 (Wed) Library Resource Presentation by LoreenPhillips

September 12 (Mon) Analyzing the Internal Environment TEXT: Chapter 3

September 14 (Wed) Preparing an Effective Oral Case Analysis CASE 1: Ford (To be presentedby Professor in class)

Section 2Business Strategy and Competitive Rivalry

September 19 (Mon) Business-Level Strategy TEXT: Chapter 4

September 21 (Wed) Business-Level Strategy CASE 2: Nintendo

(Groups 2.1 & 2.2 Presentations)September 26 (Mon) Competitive Rivalry & Dynamics TEXT: Chapter 5

September 28 (Wed) Competitive Rivalry & Dynamics CASE 3: Apple(Groups 3.1 & 3.2 Presentations)

October 3 (Mon) Midterm Review Session Chapters 1-5

October 5 (Wed) Midterm Exam Chapters 1-5

Section 3Principles of Corporate Strategy

October 10 (Mon) Corporate Level Strategy TEXT: Chapter 6

October 12 (Wed) Corporate Level Strategy CASE 4: eBay(Groups 4.1 & 4.2 Presentations)

October 17 (Mon) Acquisition & Restructuring Strategy TEXT: Chapter 7

October 19 (Wed) Acquisition & Restructuring Strategy CASE 5: Blockbuster(Groups 5.1 & 5.2 Presentations)

October 24 (Mon) International Strategy TEXT: Chapter 8

October 26 (Wed) International Strategy CASE 6: Nike(Groups 6.1 & 6.2 Presentations)

October 31 (Mon) Cooperative Strategy TEXT: Chapter 9

November 2 (Wed) Cooperative Strategy CASE 7: Room & Board(Groups 7.1 & 7.2 Presentations)

Section 4Principles of Strategy Implementation

November 7 (Mon) Corporate Governance TEXT: Chapter 10

November 9 (Wed) Corporate Governance CASE 8: From Swords toPloughshares

(Groups 8.1 & 8.2 Presentations)November 14 (Mon) Research Project Review Session Syllabus (Appendix B) &Research Paper Grading Rubric

November 16-23 In-Class Research Project Discussion Sessions

November 28 (Mon) Final Review Session & Individual ResearchPaper Due

Chapters 6-10

November 30 (Wed) Final Exam Chapters 6-10

Note: Cases can be found at the back of your textbook.


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BA 4305 STRATEGIC MANAGEMENT FALL 2011

Case Analysis Question Guide

Case 1: Ford (To be completed by Professor)

1. How can Ford successfully position itself in terms of Porters five forces of competition?2. What conditions and tools can facilitate Fords efforts to produce differentiated products at

relatively low costs?

Case 2: Nintendo

Group 2.1

1. What aspects of Nintendos business-level strategy made it a game-changer in the video gameindustry?

2. What impact has it had on the competitive dynamics of the industry?Group 2.2

3. How did competitors fail to anticipate a change in the terms of competition?4. What conditions now serve as barriers to effective competitive response on the part of

Nintendos competitors?

Case 3: Apple

Group 3.1

1. What are the key strategic challenges facing Apple Computer?2. What critical external and internal environmental factors have strategic implications for

Apples future?

Group 3.2

3. How does Apples strategy stand up against industry rivalry?4. What recommendations canbe made to enhance the effectiveness of the companys strategy

or to change its strategic approach for better results?

Case 4: eBay

Group 4.1

1. What are the greatest opportunities and threats existing in eBays current externalenvironment?


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2. What are the companys greatest strengths and weaknesses?

Group 4.2

3. In what ways can eBay differentiate itself from the competitive pack of online marketplacegiants and expanding retail brands?

4. At what level of diversification is eBay at? How can an effective corporate strategy help thecompany achieve its objectives?

Case 5: Blockbuster

Group 5.1

1. Use Porters 5 Forces Model to analyze the mail rental and video-on-demand industries in theUS. Given this analysis, are these industries attractive or unattractive?

2.

Who are Blockbusters main competitors and how does Blockbuster measure up against thesecompetitors?

Group 5.2

3. Create a SWOT analysis to understand Blockbusters strengths and weaknesses. DoesBlockbuster have a sustainable competitive advantage in the mail rental and video-on-demand industries? If so, what is the source?

4. How has Blockbuster attempted to overcome obstacles posed by being a late player in arapidly changing marketplace in terms of its acquisition strategy? Do you recommend anychanges and/or foresee any challenges?

Case 6: Nike

Group 6.1

1. Use Porters 5 Forces Model to analyze the footwear, apparel, & equipment industry in theUS. Given this analysis, is the industry attractive or unattractive?

2. What is Nikes international-level strategy? Do you recommend any changes and/or foreseeany challenges to this strategy?

Group 6.2

3. Create a SWOT analysis to understand Nikes strengths and weaknesses. Does Nike have asustainable competitive advantage? If so, what is the source?

4. Conduct a value chain analysis to identify Nikes value-creating activities.


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Case 7: Room & Board

Group 7.1

1. How does the company work with employee and supplier stakeholders to achieve sharedobjectives? What role does the exchange of resources play in these cooperative relationships?

2. What type of cooperative strategy does Room and Board engage in? Why do you think so? Isthis cooperative strategy appropriate for this company?

Group 7.2

3. In what ways does Room and Boards competitive advantage offer value to customers whichis superior to the value that traditional or alternative furniture retailers provide?

4. What measures can John Cabbert take to perpetuate the successful features of his businessstrategy and to sustain the companys high level of performance?

Case 8: From Swords to Ploughshares

Group 8.1

1. How successful has the business been at recognizing and satisfying stakeholder interests?2. What mechanisms are available to manage relationships with stakeholders and to influence

the strategic direction and performance of the company?

Group 8.2

3.

Was the board of directors for Space Center Enterprises successful in fulfilling its governancerole and in meeting the challenges it faced?

4. Based on strategic leadership responsibilities, was Paddy qualified to fill in his fathersfootsteps as CEO of the newly-merged Meritex organization?


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APPENDIX AGROUP CASE PRESENTATION CRITIQUE FORM

Team # / Names of Group Members:

Section #:

Date:

PRESENTATION CRITERIA

(Total = 80 points)

Poor Fair Good Very

Good

Excellent Points

awarded

OPENING (10 points)

Introduction / provides case background(5 points)

Grabs attention / establishes credibility / rapport(5 points)

BODY/CONTENT (40 points)

Adequately answers case questions(10 points)

Use of sufficient case evidence(10 points)

Application of course materials(10 points)

Additional case-related research(10 points)

CLOSING (10 points)

Effectively summarizes

(5 points)Quality of class discussion questions

(5 points)

PRESENTATION STYLE/VISUAL

(20 points)

Structured/Organized/Readable/Creative(10 points)

Ability to get class to participate/argue/debate(10 points)

Additional Comments:

Presentation Grade:


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APPENDIX BINDIVIDUAL RESEARCH PAPER

Individual Company Analysis: Outline

Each student is asked to write a thorough company analysis. This means a maximum of 10double-spaced pages of text (or content) on 12 points Times Roman font PLUS exhibits and

references. All exhibits, figures, tables, visual aids should be attached at the back of the paperafter page 10 although you may reference them in the text (e.g., please refer to Table 1 inAppendix 1). You should use APA format for your citations. You should also use subtitles inyour paper to help me follow your writing [e.g., (1) Financial Analysis, (2) Internal AnalysisUsing VRIO Framework, (3) External Analysis Using Porters 5 Forces, etc]. Remember, if Icant follow what you write you will get zero point.

When writing this assignment, each student should adopt the role of an outside analyst from aconsulting firm that is evaluating the current and future potential of the strategies being pursuedby the firm being researched. Please note that extensive outside research will be required tocomplete the assignment.

A complete analysis contains five main parts:

1. A financial analysis to assess the companys health2. An internal analysis of the firm3. An external analysis of the firm4. The identification of the firm's strategy as well as the strategies of its competitors5. A set of strategic recommendations for the focal firm based on your analysis

Begin with a short executive summaryabout four sentencesthat explains which firm you areanalyzing, what you looked at, and (in one short paragraph or less) what you recommend. Thiswill help your readers grasp what is happening without reading the entire case in order to set upthe scenario.

1. Financial Analysis

The financial analysis should demonstrate two things:

1. Is the firm itself financially healthy? Look at its performance over time, both in terms ofbeing profitable or solvent, and how the market has rewarded it. In general, this portionof the assignment should be an in-depth analysis of the financial status of the firm(s)being considered.

2. How strong is it relative to its competition? Are its competitors more or less profitableover time? How has the market valued them?

You dont need to be a finance major to complete this portion of the assignment. However, youshould include appropriate figures and ratios to illustrate your points. Whatever you find fromoutside research, put it into useful charts or tables and place it in the exhibits section. State yourconclusions in the report itself, and reference the specific exhibits when you do. The key is tosupport your conclusions. Everything you include must lead to a point, otherwise do not includeit. The tables below should serve as a template for your analysis.


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Sample Tables for the Financial Analysis

Case Firm Current Year Prior Year % Change

Income Statement

...

Balance Sheet

...Table 1. Change in Financials

Case Firm Closest Competitor(s)

Income StatementSales

...

Balance Sheet

Total Assets

...

Table 2. Common Size Statements of Case firm and closest competitor for 20__

RatioCase Firm Closest Competitor(s)

Current Ratio

Quick Ratio

Debt-to-equity Ratio

Debt-to-total Assets Ratio

Inventory Turnover

Total Asset Turnover

Gross Profit Margin

Net Profit Margin

Return on AssetsReturn on Equity

Table 3. Financial Ratios for Case firm and closest competitor for 20__

2. Internal and External Analyses

Generally, the internal and external analysis sections should identify the resources andcapabilities which the firm can leverage within its marketplace in order to remain successful inthe future. A complete firm-level study will contain two main parts:

1. The external analysis of the firm, which describes the context in which the firm mustcompete. A thorough external analysis will first address the general environment

described in class (see the lecture noteslegal, economic, etc.). Second, look at theindustry dynamics and competitive market (e.g. who is the firm selling to, whatchallenges does the firm face in profitably reaching their customers). Next, the analysisshould discuss the firms competitorsare they larger, smaller, more profitable, moreflexible? What advantage or disadvantage would these competitors have in themarketplace? The 5-forces model is a good tool to organize your work when defining thecompetitive environment. While not perfect, it will ensure that you have covered themain points.


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2. The internal analysis of the firm describes the strengths and weaknesses the firm brings toits competitive environment. What resources or capabilities can a firm leverage againstits competitors and/or to tap new markets? What weaknesses we might see that willhandicap the firm in the future? What are the key strategies the firm is pursuing? Explainwhether the strategies are good or bad, and provide support for your arguments.

A good internal analysis will show the difference between core competencies and theirresults. As an example, cost leadership can be the result of engineering capabilities.While sometimes difficult to use, the VRIO analysis is another good analytical tool whichcan help you to organize your thoughts and develop a supporting argument for why aresource or capability yields a competitive advantage.

3. Identification of the firm's strategy and its competitors' strategies

This section is meant to accomplish two goals: First, you are asked to summarize the focal firm'sstrategy as well as its competitors' strategies, based upon your analysis of the internal and theexternal environments. Second, you should discuss why each firm has chosen its respectivestrategy, as well as the main advantages and disadvantages of each, based upon the firm's

characteristics. Keep in mind that this does not mean that you should replicate the same level ofanalysis that you have performed on the focal firm on every competitor. However, you should befamiliar enough with each competitor to discuss its strategy at a high level. This task should beaccomplished by means of a table, as follows:

Firm Name Strategy Highlights Rationale for Strategy Pros and ConsFocal firm ...

Competitor 1 ...

Competitor 2 ...

...

4. Value Chain Analysis: Outline

In addition to the individual company analysis, each student is asked to write a thorough valuechain analysis. A value chain analysis allows the firm to understand the parts of its operationsthat create value and those that do not. It is a template that firms use to: (1) understand their costposition, and (2) identify multiple means that might be used to facilitate implementation of achosen business-level strategy.

A complete value chain analysis broadly contains two main parts:

6. Primary activities involved with: (1) a products physical creation, (2) a products saleand distribution to buyers, and (3) the products service after the sale;

7. Support activities that provide the support necessary for the primary activities to takeplace.

As illustrated below, the value chain shows how a product moves from raw-material stage to thefinal customer. To be a source of competitive advantage, a resource or capability must allow thefirm: (1) to perform an activity in a manner that is superior to the way competitors perform it, or(2) to perform a value-creating activity that competitors cannot complete.


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As simple illustrations, the value chain analysis should include some the following ideas:

(A) Primary Activities

(1)Inbound Logistics. What activities are used to receive, store, and disseminate inputs to aproduct (materials handling, warehousing, inventory control, etc.) in your company?

(2) Operations. Describe the activities necessary to convert the inputs provided by inboundlogistics into final product form (machining, packaging, assembly, etc.) What are the

chief elements of your companys production strategy? (e.g., making plant upgrades, use

of TQM/Six Sigma programs, etc)?

(3) Outbound Logistics. What activities are involved with collecting, storing, and physicallydistributing the product to your customers (e.g., finished goods warehousing, order

processing, etc)?

(4)Marketing & Sales. Analyze the chief elements of your companys marketing strategy(e.g., pricing, advertising, promotions, distribution channels, deployment of all the other

weapons of competitive rivalry).

(5) Service. Describe the activities designed to enhance or maintain your products value(repair, training, adjustment, etc).


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(B) Support Activities

(6) Firm Infrastructure. Analyze the activities that support the work of the entire value chain(e.g., general management, planning, finance, accounting, legal, government relations,

etc). For example, what are the chief elements of your companys finance strategy (e.g.,

the use of debt, dividend payments, sales/purchases of stock, use of cash, etc)? What is

your companys strategy for exercising social responsibility and being a good corporate

citizen?

(7)Human Resource Management. How does your company recruit, hire, train, develop, andcompensate its personnel (e.g., use of overtime, worker compensation)?

(8) Technology Development. What activities are completed to improve your firms productand what processes are used to manufacture it (process equipment, basic research,

product design, etc)?

(9) Procurement. Describe the activities completed to purchase the inputs needed to produceyour firms products (raw materials and supplies, machines, laboratory equipment, etc).

In addition, the value chain analysis should include the following:

(10)Competitor Analysis. Benchmark each activity against the closest competitor andindustry averages. For example, in your analysis, elucidate what each firm spends onmarketing? What marketing methods are used? Did the marketing tactics change inresponse to competition? In addition, each activity should be examined relative tocompetitors abilities and rated as superior, equivalent or inferior.

(11)Temporal Comparison. Compare each activity over two logical points in time (change inthe economy, introduction of a new product in the industry, disaster like BP, Toyotarecalls).

5. Recommendations

Having analyzed the firm and its competitors, you should have an idea of what strengths the firmshould be leveraging on and you can look again at the external environment to see whatopportunities it should pursue. In many of the cases, the firm in question is contemplating, or hasimplemented, several specific strategic actions (e.g., an acquisition). In this situation, the writtencase analysis should also include an evaluation of these specific strategic actions and, whereappropriate, recommendations should be made and justified. The recommended strategy shouldoccupy the last quarter to one-third of your analysis. Ideally, you would give one to three

alternatives, possibly listed in bulleted form. One option could actually include dont changeanything, but very likely this will not be the best choice, especially in a competitive market.Select one of these alternatives as the preferred recommendation. While all three might be good, afirm may only be able to attack one at a time, and will want to know which one you think has thebiggest return. Explain why you believe this is the best option for the firm. The alternatives needto be specific action itemssomething that if it were developed into a plan, you could go to a bank and get financing. As an example, instead of saying Firm Z should acquire othercompanies, try to suggest possible candidatesand say why Firm Z would benefit. If you cant


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find specific firms, you could say, acquire firms in the range of $XX revenue, or $YY marketcapitalization, or some other relevant factor. Instead of saying form an alliance, you couldrecommend form an R&D alliance with Q to leverage this firms superior product rolloutcapabilities against Qs more advanced technology. It may take some effort, but this will showthat you understand a) what makes the firm strong or weak and b) how it can take advantage ofthose factors. You could even recommend a firm liquidatebe specific and say how management

should sell it off.

Additional Requirements

Obviously to do a good strategic analysis of a firm, you will need to compile additional data. Theuniversity subscribes to many online journals, and much news is available from sources like APor Reuters, or even Lexis-Nexis. Keep records of what you find. If you cite from press releases orarticles, list them in a bibliography. If you use numbers from an investing website, compile theinformation you use into some easy-to read tables or charts, and put all of this into your exhibits.Try not to include things in the exhibits for the sake of taking up spacepredigest the usefulknowledge for your audience so that they can quickly spot what is important.

Finally, you should be thinking critically about the firm in this analysis. I dont have to agree withyour conclusions or recommendations, if you argue them convincingly. I am looking to see thatyou understand the process for completing this assignment. Once you understand the logicalframework to follow, good answers come with practice.

Additional Oral/Written Evaluation Guidelines. Excellent analyses tell a story about a firmsstrategies and describe the fundamental economics of a firms strategy, how different parts of thestrategy are related, and the longer-term objectives of a given strategy. It is important that eachmajor point in their argument be justified with reference to critical facts in your research, andappropriate ideas and concepts from lectures and the readings be seamlessly incorporated into thediscussion.

Mediocre analyses demonstrate few of these attributes. Instead of telling a story about a firmscorporate strategies, these analyses simply repeat the facts and assertions contained in thematerials you gather. Critical facts about the company are ignored, or not integrated into thepaper. For example, a mediocre analysis will often include a summary and cursory discussion of afirms profit and loss statement and its balance sheet, but will fail to discuss the strategicimplications of these analyses. The author(s) of these analyses often seem more interested inmaking sure that every theory or model mentioned by the professor or in the book is mentioned inthe report than making sure that the report tells an integrated story about a firms strategy. Often,the different parts of these mediocre analyses are not linked--almost as if different people wrotedifferent sections, but no one took the time to bring these sections together or to discuss theimplications of each section for other sections. These analyses rarely generate any counter-intuitive or surprising analyses or recommendations. At the end of reading or listening to these

analyses, the reader/listener is only convinced that, in fact, members of the group read the case.The reader is not convinced about the wisdom of any final recommendations.

Individual Company Analysis: Rubric for Grading Final Assignment

The following rubric contains five main sections: Financial Analysis, Internal Analysis &External Analysis, Value Chain Analysis, Supplementary Analysis, and Recommendations. Eachsection is worth between 15 and 40 points. The following objectives guide this rubric for thepurpose of meeting the Capstone individual requirements for BA 4305:


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1. Complete an internal and external analysis of a firm.2. Identify the strategic problems of a firm.3. Integrate skills acquired in finance, accounting, marketing, production, and MIS courses

to create a successful firm strategy.

4. Develop ethical solutions to the problems identified from the firm analysis.Financial Analysis (20)

The goal of the financial analysis is to assess the financial health of the firm and compare the firmwith its competition.

Criteria: Does not meetexpectations (0)

Needs improvement(2.5)

Meets expectations(5)

Statement of financialhealth

Analysis over time

Analysis comparedwith competition

Appropriateness offigures and supportingmaterial

Internal Analysis (20)

The goal of the internal analysis is to identify firm strengths and weaknesses. The VRIOframework will help guide a resource and capability discussion, and build on the strengths andweaknesses identified in the first part of this section.

Criteria: Does not meetexpectations (0) Needs improvement(2) Meets expectations(4)

Strength and weaknessanalysis

Discussion of value

Discussion of rarity

Discussion ofinimitability

Discussion of non-substitutability

External Analysis (20)

The goal of the external analysis is to assess the environment in which the firm competes. Tosupplement this, a stakeholder analysis gauges potential issues outside the context of firm to firmcompetition for a complete external analysis. While the rubric proposes a Porter's 5-Forcesanalysis other analytical tools are acceptable. A general assessment statement will integrate theanalyses into a comprehensive statement of the competitive environment.


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Needs improvement Meets expectations

Stakeholder analysis (1.5) (3)

Threat of entrants (1.5) (3)

Buyer power (1.5) (3)

Supplier power (1.5) (3)

Threat of substitutes (1.5) (3)Threat of rivalry (1.5) (3)

General assessment ofcompetitiveenvironment

(1) (2)

Value Chain Analysis (15)

The goal of the value chain analysis is to integrate the various areas of business surrounding afirm and its competitors, such as, for instance: (1) the elements of a company's marketing mixusing the 4P framework: Product, Price, Promotion, Place; (2) pricing strategies such as markuppricing and target pricing; (3) solve typical operations management problems: e.g. forecasting,

inventory control, and quality control; (4) describe what drives a firms cost of capital and how toestimate it; (5) analyze investments in real and financial assets using various methodologies.There are three components to the value chain analysis, as outlined below:

Primary Activities Analysis (5) - The goal of this analysis is to assess the primaryactivities in the value chain analysis.



Meetsexpectations (1)

Inboundlogistics

Operations

OutboundlogisticsMarketing &Sales

Service

Support Activities Analysis (4) - The goal of this analysis is to assess the supportactivities in the value chain analysis.


Needsimprovement(0.5)

Meetsexpectations (1)

Firminfrastructure

Human resourcesmanagementTechnologydevelopment

Procurement


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Supplementary Value Chain Analysis (6) - The goal of the supplementary analysisis to emphasize the need for competitive benchmarking and comparison of activitiesover time.

Criteria: Does not meet

expectations (0)

Needs

improvement(1.5)

Meets

expectations (3)

Competitoranalysis

Temporalcomparison

Supplementary Analysis (20)

The goal of the supplementary analysis is to emphasize the need for succinct presentation andquality communication in the business environment.




Executive Summary

Organization andcommunication

Tables, figures, andattachments other thanfinancial tables

References

Recommendation(s) (40)

The goal of the recommendations is to assess the translation of analysis into a firm strategy. Thissection should comprise 25 - 35% of the paper. The recommendations should reflect the analysisfrom above, leading to a commitment to one strategy as the 'strongest' candidate supported byanalytical conclusions. The final step is to outline a specific plan for implementation.


Needs improvement(5)


Identify the firm'scurrent strategy

Recommend three (3)potential strategiesCommit to one of the

recommendedstrategies

Outline a strategicimplemental plan


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C S ll b BA 4305 St t i M t P 25

Definitions:

Does not meet expectations - an element is missing in whole or in part. For instance, in theexternal analysis a student presents the 5-Forces with some analysis but without a statement ofthe strength of the force (high, moderate, low).

Needs improvement - an element contains incorrect information, lacks support for analysis,contains mere restatement of facts, and/or does not incorporate appropriate use of terminology.For instance, in a 5-Forces analysis a student incorrectly states the strength of the force (high,moderate, low).

Meets expectations - an element is correctly determined, discussed with evidence, and usesappropriate terminology.

UT Dallas Syllabus for ba4305.501.11f taught by Ngah Lim (nxl091000)

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