= ;

Management 441: Strat= egic Management

Fall 2006

Dr. Tim Sch= oenecker

Room 3305 (= in School of Business Administrative Suite)

Phone: 650-2485

E-mail: tschoen@siue.edu

Internet: www.siue.edu/~tschoen

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Class Time: Friday 9:00am-11:50am

Office Hours: <= /span>Friday 12:00pm-1:00pm or by appointment

Required Materials

1. Barney, J.B. and Hesterly, W.= S., Strategic Management and Competitive Advantage, 2006, Pearson Prentice Hall, = Upper Saddle River, NJ.

2.&n= bsp; Thompson, A.A., G.J. Stappenbeck, and M. Reidenback= , The Business Strategy Game Online Version, 2006, Glo-Bus Software, Inc. (www.bsg-online.com) Note: All students will be require= d to register and pay for this simulation later in the semester.

Course Overview

Strategic Management focu= ses upon the activities of the general manager—the person who has the responsibility for determining the shape and character of a total enterpris= e or of one of its business units or divisions.= A general manager must possess a point of view that differs from tha= t of managers in functional areas at lower levels of the organization. At the functional level (marketing, accounting, etc.), the activities of managers and other employees are influenced and constrained by the organization's overall strategy. While functional managers are more concerned with efficiency (“Are we doing things right?”), gener= al managers are more concerned with effectiveness (“Are we doing the rig= ht things?"). Among your bu= siness courses, Strategic Management is unique in its focus on the organization as= a whole and its relationship with the external environment.

The strategic activities = of top managers have an important role in determining whether the firm survives in the long run. Top managers exercise th= is influence in two ways. First, they do so through the content of specific strategic decisions that they make or approve. Second, they do so t= hrough the processes of designing an organization structure, selecting executive personnel, measuring and evalua= ting managerial performance, and determining the set-up of the formal planning system.

The major focus of this course is on the analytical ta= sks of strategic managers: identifying, evaluating, and formulating strategies. These activities include analysis o= f the business environment, assessing the firm's strengths and weaknesses, setting goals for the business, and developing specific plans for how the firm will achieve its goals. Less empha= sis will be placed on strategy implementation issues, i.e., those activities th= at make it possible for the strategy to be carried out by the organization. Throughout the course, the ethical implications associated with strategic decisions will be discussed.

Course Goals

This course will strive to achieve the following speci= fic goals:

1. To develop an awareness of the strategic decisions that organizations must make, and of the concepts upon which these decisions depend.

2. To teach the theories and analytical techniques of strategic management. Additionally, you will learn the appropriate circumstances for applying these skills and how to critically interpret the results of these analyses.&n= bsp; We will apply these techniques in the context of various, real-world case studies and through a business simulation exercise.

3. To integrate the material alr= eady learned in other business courses -- accounting, finance, operations, etc., into a broader organizational context.&nbs= p; While you have already learned problem-solving skills in your other = coursework, they typically have been presented within a specific functional context. In this course, we will be looking= at entire organizations; this will require a broader perspective and the abili= ty to draw on skills learned in multiple courses to solve complex problems.

4. To prepare you for the transi= tion into the business world. A successful managerial career requires good communications skills. Therefore, class participation wil= l be emphasized in this course. It is vital t= hat you develop the ability to verbally express your ideas, recommendations, and criticisms in a clear, professional manner. It is also important for you to be= come comfortable speaking in front of groups, both in formal presentations and in informal discussions. Therefo= re, we will conduct case discussions as interactively as is possible. Finally, several written assignmen= ts will provide you with the opportunity to enhance your written communications skills.

Grading Policy

Midte= rm Examinations &= nbsp; &nbs= p; &= nbsp; &nbs= p; 140 pts.

Indus= try and Company Analysis Project &= nbsp; &nbs= p; 75 pts.

Simul= ation Results (Team) = ; &n= bsp; = ; &n= bsp; 50 pts.

Simul= ation Presentation (Team) &= nbsp; &nbs= p; &= nbsp; 40 pts.

Simul= ation Assignments (Team and Individual) &nbs= p; &= nbsp; 25 pts.

Class Participation = &nb= sp; = &nb= sp; = 50 pts.

Major= Field Test in Business &nb= sp; = &nb= sp; = 20 pts.

&= nbsp; &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p; = 400 pts.

Attendance

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In Management 441, there is no such thing as an excused absence. You are either present or you are not. Because so much of the learning in= this course occurs in the classroom, excessive absences can lead to either a fai= ling grade or dismissal from the course. While good attendance does n= ot ensure high marks in class participation, poor attendance will result in a = poor class participation grade.

Exams

Two written examinations will be held during the first= ten weeks of the semester. They a= re tentatively scheduled for September 22 and October 20. Each exam will be worth 70 points.= The exams will consist primarily of essay questions. A make-up exam will not be given without prior notification of absence.

Industry = and Company Analysis Project (ICA<= /st1:place>P)

Each student will complete the ICAP, in which he/she analyzes the structure of an industry, the strategy of a publicly-traded fi= rm that competes within that industry, and makes recommendations regarding the company’s future. No tw= o students will be allowed to analyze the same firm, although some students may analyze firms that compete within the same industry. I reserve the right to review = your selection of the company to be analyzed. This ICAP will be completed in the following stages:

Stage	Description	Due Date<= /p>	Points
1	Select industry and company	Sept. 8	0
2	Perform industry analysis	Sept. 29<= /p>	25
3	Develop company profile and analyze company strategy=	Oct. 27	25
4	Assess strategic “fit” and make recommendations	Nov. 17	25

At stage 4, all three sections of the paper must be submitted together. Specific details on each stage of the ICAP will be forthcoming. A late assignment will receive an automatic five-point deduction for each day that it is turned in late. Handing in the assignment after the class period= has ended will be considered one day late.

Strategy Simulatio= n Game

The final six weeks o= f this course will be devoted to a computer simulation exercise. Participation in the game will be = a team project with each team consisting of 4 or 5 members. Each team will manage an athletic footwear manufacturing company. All of the teams formed from this section constitute an industry, and these tea= ms (companies) will compete against each other.

There are several distin= ct components to this exercise that will be graded separately. Fifty points will be determined by= the financial performance of your team relative to its competitors. Another 40 points will be determin= ed by a team presentation that discusses your firm’s strategy and performan= ce. This presentation will take place = on December 14 during the final exam period. Finally, 25 points will be determined by several short assignments that are associat= ed with the simulation. These va= ry from on-line quizzes (taken individually) associated with the simulation to= brief team memos. Details on all as= pects of the simulation will be provided later this semester. The attached class schedule provides a tentative s= chedule of when the decisions are due.

With the exception of the on-line quiz, all of the ite= ms associated with the simulation are expected to be team activities. Since these activities represent a= large portion of your final grade, it is critical that each team member makes a significant contribution to the team’s effort. I have developed two incentives to= try to discourage any “free-riding” by team members. First, members of each team have the option of “firing” a team member = for the final presentation. In th= at case, the person “fired” would have to write an individual repo= rt on the simulation. Second, yo= ur grade on any of the three elements of the exercise may be modified based on the result= s of required peer evaluations of your contributions in each element of the exer= cise. The peer evaluations will be used = to adjust each team member’s grade by as much as 25% of the points associated with each of the elements. While you should try to solve any team-related problems internally (this will be a skill that you will need in your careers), do not wait until the end of the semester to let me know that your team is having serious difficulties dividing the workload.

Major Field Test in Business

As a part of the School= ’s assessment program, each student enrolled in Management 441 is required<= /i> to take the Major Field Test in Business (MFT). The MFT covers virtua= lly all of the areas of business that you have studied (economics, accounting, marketing, management, etc.). Student performance on the MFT provides the School with an understan= ding of how well our students are retaining important business knowledge. Becaus= e it includes topics covered by virtually all of your business courses, you are = not expected to study for the MFT. For this section of Management 441, the MFT will be taken on Friday, December 8 during our regular class time.

Five percent (20 points) of your course grade will be determined by your performance on the MFT. Students who do not complete the Major Field Test in Business will not receive a course grade for Management 441.

Class Participation<= o:p>

As was stated earlier, = a critical skill for any manager is the ability to clearly articulate his or her metho= d of analysis and to persuade others to the merits of this analysis. Active class participation by stud= ents is an essential part of the learning experience in this course. Points for class participation wil= l not be awarded for simply “showing up”. You must be an active participant = in class discussions (especially on case study days) to earn a good grade in participation. Fifty points w= ill be associated with class participation in this course.

Failure to take an active role in class discussion pen= alizes you and your classmates in several important ways. Additionally, because re= gular presentation of your ideas sharpens your mastery of the subject matter, fai= lure to participate in class discussions on a regular basis may be associated wi= th other work (exams, written assignments, etc.) that does not reach its potential. On the other hand, please remember that the quality of your participation is also important. You will not raise your participat= ion grade by speaking frequently and saying nothing. Keep in mind that there is a diffe= rence between "being wrong" and "saying nothing". A comment that may be wrong, but t= hat deals with a critical issue, can be very valuable to the discussion. A comment that says nothing, or si= mply restates another student's comment, is of little value to the class.



Policy on Fatal Errors=

Formal writte= n work in this course is expected to conform to professional business standards. As business students, you must pra= ctice professional standards of writing. To this end, all written assignments done out of class must meet min= imal standards to be acceptable. T= hese are minimal standards and address such things as spelling, punctuation, for= mat and basic grammar. Mistakes o= f this sort make readers question your basic competence and they have negative consequences for career advancement. The following “fatal error policy” will be used in this course.

The term fatal errors refers to technical errors in language and errors of form= . Specifically, fatal errors include= the following:

         = 1)   Misspelled words

         = 2)   Sentence fragments

         = 3) Run-on sentences and comma sp= lices

         = 4)   Mistakes in capitalization

         = 5)   Errors in punctuation

         = 6) Errors in verb tense or subject/verb agreement

         = 7)   Improper citation/references<= /p>
         = 8)   Lack of consistency in format=

Writing assignmen= ts with more than three fatal errors on any one page or six or more in the entire document are unacceptable and will be returned to you without a grade. The assignment must be corrected a= nd returned to me by the next class period.&n= bsp; Grades on papers returned because of fatal errors will be reduced by= the equivalent of one letter grade. Resubmitted assignments exceeding the fatal error limit will receive= a failing grade.

One way of avo= iding some of these errors is to pay careful attention to what you write. Other ways of avoiding these errors include: 1) the use of spelling and grammar software (available in our comp= uter and writing labs); these programs will detect some kinds of fatal errors, b= ut not others; 2) enlisting the help of someone else to proofread your document (your fellow students or team members can help here); 3) writing a draft an= d then editing it into a final product well before it is due, allowing you to do a= careful final check; and 4) taking advantage of the assistance available in the Wri= ting Lab. Ultimately, you a= re responsible for producing a document that meets acceptable standards for pr= ofessional writing. These minimal standa= rds are quite reasonable for university-level work.

S= chool of Business = Code of Professionalism

Faculty, staff, and students in the School of Business<= /st1:PlaceName> at Southern Illinois University Edwardsville are expected to contribute to a culture of integrity and professionalism.&= nbsp; Our School’s culture encourages behaviors associated with educ= ated and self-disciplined individuals. Those behaviors include:

·        being honest;

·        being reliable and prepared;

·        being responsible for one’s own actions and decisions; and

·        being respectful of all individuals.

One Final Note

As your Management 441 instructor, I am committed to w= ork with you to make your learning experience in this course productive and valuable. At the same time, I expect you to make a good-faith effort to succeed in this course. I will come to all class sessions = well-prepared and expect you to do the same. Please do not hesitate to contact me if you have any difficulty understanding the course materials or any of the assignments. I am readily available via phone or email and am willing to meet with you outside of my regularly scheduled off= ice hours.

Date	Topics	Reading/Decision	Comment
8/25	Course Introduction; Fundamental Concepts	Chapter 1
9/1	Industry and Competitive Analysis/Roadway Express, Inc	Chapter 2/Case 1-1
9/8	Internal Analysis/Wal-Mart Stores, Inc.	Chapter 3/Case 1-4	ICAP stage one due
9/15	Cost Leadership/JetBlue Airways	Chapter 4/Case 2-2	<= /o:p>
9/22	Midterm Examination I/Differentiation	Chapter 5	Exam covers Chs. 1-4
9/29	Vertical Integration/Nike, Inc. in 1998	Chapter 6/Case 2-5	ICAP stage two due
10/6	Diversification/Nucleon, Inc.	Chapter 7/Case 3-2
10/13	Alliances & Mergers/Acquisitions/easy Group’s Business Model	Chapters 9 & 10/Case 3-4
10/20	Midterm Examination II		Exam on Chs. 5,6,7,9,10
10/27	Simulation Workshop	BSG Player’s Manual	ICAP stage three due
11/3	Simulation	Practice decision due (R)
11/10	Simulation	Y11 (R) & Y12 (F)	Team Memo 1 due
11/17	Simulation	Y13 (R) & Y14 (F)	ICAP final report due
11/24	Thanksgiving Holiday
12/1	Simulation	Y15 (R) & Y16 (F)	Team Memo 2 due
12/8	Major Field Test	Y17 (R)
12/14	Team Presentations		Begin at 10am