MBA 534, STRATEGIC MANAGEMENT
Summer, 2002
Catalog Description:
The analysis, formulation, and implementation of a firm’s strategy are studied from a general management perspective. Interrelationships between the firm and its external environment, and between the firm’s corporate, business, and functional strategies are emphasized. Prerequisites: MBA 531; completion of core courses; consent of program director.
Dr. Joseph F. Michlitsch
Department of Management & Marketing
Southern
Voice: 618-650-2708
Fax: 618-650-2709
e-mail: jmichli@siue.edu
Web: http://www.siue.edu/~jmichli/
TEXT AND
1. Packet of articles. (Purchase)
2. Packet of cases. (Purchase)
3. Capstone simulation. I will deliver the manuals for this simulation at the introductory meetings. Then you must register on-line. Details at the introductory meeting.
4. Check my home page on the web for notes to download.
COURSE OVERVIEW
This is a comprehensive and integrative course. We will learn how to pull together all of your past learning through the concept of overall strategy. In doing so, we will take the role of top management whose primary concern is the overall and long run success of the organization. Since the job of top management necessarily cuts across all functional areas, we will learn to coordinate all of the areas into an overall successful strategy.
In addition to reinforcing and integrating previous coursework in a managerial setting, a primary objective of this course is to become proficient in analytical thinking and the use of analytical tools. We will use articles, cases, the text, videos, and classroom discussions and lectures to learn how to systematically analyze the structure of industries, how to assess and choose the best, or at least better, strategies for various organizations, and how to ensure that the various functional area decisions follow from and facilitate, rather than obstruct, the overall strategy.
A final objective of the course is to become familiar with current issues and managerial techniques. You will be encouraged, and required, to critically analyze these issues and techniques. Discussions and presentations of readings will provide opportunities to supplement theory and case analysis with current information that successful managers consider when planning and designing strategies for success of their organizations.
COURSE REQUIREMENTS AND GRADING
Participation. This course simulates taking the role of a member of a top management team. As such, it requires participation and thinking on one’s feet. Much of class time will be devoted to discussion of cases and related material representing a managerial situation. Consequently, it is essential for you to have read and analyzed each day’s material before coming to class. Bring your notes, especially for each case that is discussed. I will expect and encourage active participation from everyone in class discussions. Also be prepared to be called upon at random.
There are many forms of participation in a class. One form, active, oral participation in class will be evaluated for your participation grade. I will focus on the quality of your participation in class. Of course, the quality is related, at least to some extent, to quantity but quantity by itself is irrelevant or even negative. If quality is not there, then quantity helps point that out. A general guideline is about one good quality participation every two hours would earn a grade of C. After the first weekend, I will estimate your grade. I will also ask you to estimate your grade. Then I will compare the two and, in cases of disagreement, will send you a note and/or discuss it with you.
Attendance does not count for participation. In your organization/company, you wouldn’t get much credit just for “being there.” Would your supervisor give you a lot of credit if you just stood there when s/he asked you a question, especially one that required evidence and logical reasoning?
You will be assigned to ad-hoc groups for in-class presentation and discussion of cases. This will provide opportunities for team-work development skills and for improved case analysis through exchange and critique of ideas. Your active, oral participation here is part of the participation grade.
In-class group presentations and discussion assignments will vary. An example: A team will be given thirty minutes to prepare a summary of the main forces in the industry of one of the cases assigned for discussion. Then they will present this summary in five or ten minutes.
Exam. The mid-term exam will consist of essay type questions, and possibly some multiple-choice questions, covering all topics read or discussed up to the date of the exam. It will be designed to be completed in approximately one hour. Essay-type questions are written so that they can be answered in approximately one half page. Details, including examples of questions, will be discussed in class.
Individual Report. One individual written assignment is required. It will be given in a separate paper.
Simulation. Teams of two to four people will manage a computer-simulated company. Instructions are in the simulation manual, handouts, and discussions. Your contribution to this team will not be graded by me. I will discuss using a peer evaluation form with you. In severe cases, the other members can remove you from the team. If you are removed, you will earn zero points for the simulation and for the strategic plan.
Strategic Plan. On the last class day, your management team will discuss the general results of your simulated company (with the Board of Directors) and will outline your future plans for the next several years. Along with this discussion, a written strategic plan is due to the Board of Directors on that date. Members of the Board of Directors are interested in your recommended future strategy and the external and internal analysis that supports it. They want to know the reasoning for your conclusions. Details will be discussed in class
Format for the strategic plan:
1. Title page: Name of your company, a title such as “Strategic Plan” or similar title, your individual names.
2. Executive summary – 1 page. Please remember, this is an executive summary (An executive reader must get all of the points in your paper from this summary. S/he should not have to read the rest of the paper!), not an introduction.
3. External analysis, probably including these sections:
Markets/industry
Competition
Economy (exchange rates, effects of economic indicators, etc.)
Other
4. Internal analysis, including:
Marketing
Production/operations
Human Resources
Finance
Strategy
5. The plan:
Plan for the next year, including specific goals
Plan for about the next 2 years
6. Appendix: Graphs to back up analysis. Present them in order. Cite every one. Label them properly.
7. Use 12 point type and at least 1 inch margins all around. Single-space the executive summary. Usually strategic plans are single-spaced throughout. Consider double-spacing the body of the plan to make it easier to read and to leave room for comments. If you single-space, please do not go over 10 pages, counting only the body; 20 pages if double-spaced.
SUMMARY OF GRADED WORK:
Each of the five graded works is 20% of the course grade: Mid-term exam, participation, individual report, simulation financial results, and the strategic plan.
OTHER INFORMATION.
I expect you and me to attend all scheduled classes. If absent, we are responsible for our respective roles.
Please contact me if you have questions. Also let me know if you have business travel or emergencies. We will try to work assignments around these.
Since the case method involves student-centered learning, my role is to facilitate that process. I will present theory relevant to the case analysis when appropriate and will attempt to broaden and deepen understanding on related issues. I may summarize at various points, especially at the end of the case presentation and class discussion in order to emphasize different ways to approach the case analysis. My job also consists of asking questions and requiring that your conclusions be explained and defended.
Grades are based upon the degree to which the main issues have been identified and explained in a case/question, the reasonableness and depth of analysis, and the support for conclusions. The quality of writing and oral work is an integral part of these assignments since points and arguments must flow and be supported.
As a general rule, I will not accept assignments late. If you have an emergency or very important travel, please let me know as soon as possible. We will work something out, especially when there is a test or paper due.
You may wish to download a Word file that contains an overall outline that can be used to guide analysis of cases. It is a fairly comprehensive set of questions that is intended to encourage and prompt search for information when analyzing an industry and organization. It is called (Outline).
SCHEDULE
· For each case that is
assigned, be ready to actively participate in the case discussion. Prepare a complete analysis: Analyze the external factors, internal
strengths, weaknesses, strategy(ies), and alternative
potential overall strategies. Of course,
also be ready to discuss the concepts and tools discussed in the readings.
· “Visual aids” in the third column refers to PowerPoint files attached to this syllabus on my homepage.
May 31: Introduction. This meeting is crucial since be need to get
set up for a lot of work between this time and the first class in three
weeks. Also, the first decision for the
simulation is due on June 22, at the beginning of class. We will have to get set up for the
simulation. Start forming your team of 4
people for the simulation.
June 21-23:
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Topics/Assignments |
Readings/Cases |
Visual Aids |
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Strategic management. |
Are you sure you have a strategy? (Hambrick) Power grid. (Wysocki) On a mission. (Ellingwood) Service with a smile. (Romine) |
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External analysis; industry, markets, competitors, economy, etc. |
Disruptive technologies. (Bower) Headwinds. (Wysocki) Pair braves the odds in bid to build an airline. How competitive forces shape strategy. (Porter) Case: Ready-to-eat breakfast cereal industry. |
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Internal analysis; competencies, strategy, competitive advantage, value chain. |
Looking inside for competitive advantage. (Barney) EVA & MVA (Lehn) How fast can your company afford to grow? (Churchill) Case: Airborne Express. |
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Implementation of strategy, sustainable competitive advantage. |
Using the balanced scorecard as a strategic management system. (Kaplan) Place vs.
product. ( The anti-control freak. (Colvin) Well-trained, motivated employees are crucial… (Potochny) If you can’t get this right. (Alsop) Case: Starbucks. |
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Business level strategy; matching strategy to situation. |
Generic competitive strategies. (Porter) Differentiation versus low cost or differentiation and low cost? (Hill) Porsche goes soccer mom. (Meredith) Spending soars on drug ads that target public. (Johnson) Case: Saturn Corporation in 1998. |
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Simulation |
First decisions
due Friday, Second decisions
due Saturday, Third decisions due Sunday, 10 a.m. |
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Individual Report |
Due Sunday a.m. |
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Mid-term Exam |
Sunday, mid-afternoon. |
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July
1: Fourth decisions due by
July 12-14
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Competitive dynamics |
Review of all before. The chairman of the board looks back. (Fortune) King of the hill. (Smith) The price is not always right. (Revell) Best beats first. (Collins) The last-mover advantage. (Chen) Case: Matching Dell. |
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Corporate level strategy; diversification, acquisition, restructuring, alliances. Managing the portfolio. |
Psst… The mergers mavens still have it wrong! (Lubatkin) Not all M&A’s are alike. (Bower) They shopped – now they’ve dropped. (BusinessWeek) We control the
vertical. ( A merger’s bitter harvest. (BusinessWeek) Case: Newell Company. Case: Black & Decker (Not in case packet.) |
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Global strategy. |
Case: |
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E-business. |
Strategy and the Internet. (Porter) Driving e-business excellence. (Barua) How Amazon cleared that hurdle. ( |
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Tying it all together. |
The boardroom follies. (Colvin) Enron electrified. (Zellner) The envelope, please. (Colvin) Why Enron went bust. (McClean) |
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Simulation. |
Fifth decisions due Friday, Sixth decisions due Saturday,
Seventh decisions due Sunday, |
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Final Exam. |
This consists of the written strategic plan and participation in discussion of the plan and the underlying analysis. Sunday, mid afternoon. Write the strategic plan after the fourth set of decisions. The discussion on Sunday afternoon must include information through the last results. |
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