Fall, 2001

Section 074, R 7:30-10:15p.m., FH0101(Office Time:by appointment.)

Section 092, TR 9:30-10:45a.m., FH 0116(Office Time:10:45-11:45a.m., by appointment)

Catalog description:

Capstone course using top management perspective to develop comprehensive, integrative analysis of organizations and environments as basis for development, implementation, evaluation, control of overall strategy.

Prerequisite:Completion of BSBA core requirements or concurrent enrollment in final core requirements and consent of instructor.

Dr. Joseph F. Michlitsch

Box 1100, Founders Hall - 2127

Department of Management

Southern Illinois University

Edwardsville, IL62026-1100

voice:618-650-2708

fax:618-650-2709

e-mail:jmichli@siue.edu

web:http://www.siue.edu/~jmichli/
TEXT AND READINGS

1.Thompson, A. & Strickland, A. (1999).Strategic Management:Concepts and Cases, 11^th ed., Boston, MA:Irwin McGraw-Hill.

2.Thompson, A. & Stappenbeck, G. (2001).The Business Strategy Game:A Global Industry Simulation, 7^th ed.Boston:McGraw-Hill Irwin.

3.Some articles and/or cases may be handed out or put on reserve in the library.See the schedule.

COURSE OVERVIEW

In addition to reinforcing and integrating previous coursework in a managerial setting, a primary objective of this course is to improve analytical thinking and the use of analytical tools.We will use articles, cases, text, videos, classroom discussions and lectures to learn:

·how to systematically analyze the competitive structure of industries,

·how to analyze the strengths and weaknesses of an organization,

·how to assess and choose the “best”, or at least “better,” strategies,

·how to integrate the functional area decisions into the overall, long-term strategy.

Another objective of the course is to acquaint you with current issues and managerial 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.

All of the above leads to the overall objective of this course.That objective is to prepare you for the transition to the business world.

COURSE REQUIREMENTS AND GRADING

Individual written report.There will be one individual analytical written report.The assignment will require analysis of a particular issue in a case.The report should be about 3-4 pages long, not including exhibits.The specific assignment will be given separately.

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.Be prepared to be called upon at random.

While attendance can be considered a form of participation, it will not earn credit in this class.The practical reason for that is that attendance alone at a management meeting where discussion is expected would not be considered acceptable.

To grade participation, 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 few things to consider:

·If someone simply repeats what someone else (another student, the authors, the professor, etc.) has already said, that does not add to understanding.Quality is zero.

·What about the “dumb” question or if I am “wrong?”Any question or comment that helps understanding is not dumb.If someone says something that is “wrong” and it helps understanding, that question or comment is valuable.

·Oral participation helps you to prepare your analytical skills.You can develop organizing and communicating ideas to a group, a skill that is necessary in your managerial career.

·A general guideline is one good quality participation per class session (2 for night section) would earn a grade of C.And, yes, there is plenty of time for everyone to speak at least once per class session.There is actually plenty of time for each person to make three, or more, good contributions each class session.

This participation grade, of course, presumes attendance at all class meetings.Missing class is never “OK” with me, or “excused” by me.It is neither my prerogative nor my responsibility to decide whether or not you should come to class.That is your decision.You and I are responsible for our respective roles, for the consequences related to our roles, if we decide to not come to class.If you have a true emergency and/or a longer-term illness, please talk to me as soon as you can.I will discuss an appropriate solution with you in those situations.

You will be assigned to one group for a business simulation and to groups for in-class presentations and discussions of cases.This will provide opportunities for team work development skills and for improved case analysis through exchange and critique of ideas.

Assignments for preparation by in-class groups 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 1-2 minutes.

Team members will evaluate participation in your simulation group.The evaluation form, which I will give to you soon, will explain what is measured and how that evaluation affects your simulation and strategic plan grades.

Use the skills you have learned in other classes to make your team perform well.If you have interaction problems, please try to work them out.In more serious cases, talk to me.I will try to help.To encourage your successful interaction with team members, I allow the option of “dropping” a team member from the strategic plan if that person is not working out and is not trying.In that case, the “dropped” person must write the strategic plan alone.

Simulation.Teams of three to five people will manage a computer-simulated company.Detailed instructions are in the manual and handouts and will be discussed in class.

Company memos.Your team will submit four memos based on your simulated company.Memos will be 1-2 pages and deal with an aspect of the industry or your company.Specific assignments will be given later.Together, memos are 10% of your grade.

Strategic plan.At the end of the semester, you will present a written strategic plan to the Board of Directors of your company in the business simulation.(The final exam time will be used to discuss the overall industry situation and your strategic plan with the Board.)The strategic plan includes reasoning for your strategy, explanation of your company’s performance, and a plan for the future.This must be based soundly on a thorough analysis of the industry and external environment and the strengths and weaknesses of your company.Analysis means that you must clearly explain and demonstrate the interactions, influences, and consequences of factors in the external environment and explain and demonstrate the consequences of your strategy and tactics.The Board of Directors must be convinced that you understand the industry and external environment of your company and that you understand how and why your strategy, operations, and tactics are, or are not, leading to success.

The written plan should be about 10-15 pages, not counting attachments.Use 12-point type and at least 1-inch margins.I prefer that you double-space for ease in reading.If you single-space, then please don’t go over 10 pages.For the oral discussion during the final exam time, bring your best two graphs as overhead slides to help in making clear, supported points.While you are accustomed to PowerPoint Presentations, simple overhead slides, or even just writing on the chalkboard, works better for this discussion since it is quite informal.

Use this format for the strategic plan:

·Title page:Name of your company, a title such as “Strategic Plan” or similar title, your individual names.Please make this a real strategic plan.While it is not required and will not affect the grade, some appropriate art and/or a binder might be nice.

·Executive summary – 1 page.Remember, this is not an introduction to your report.It is a complete summary of your paper.The reader must understand all of the points in your paper from this executive summary.(You may single-space this page.)

·Introduction:

First paragraph:A true introduction to your paper.Tell the reader what s/he will find in your paper.

Second paragraph:A very brief description of your strategy, the success of it, and the reasons for the success.Mention your product, the overall strategy, and the main components of the strategy (functional strategies).This should lead directly to the next section, in which you explain the important factors in the industry, and their interactions and consequences.

·External analysis, probably including these sections:

Markets/industry

Competition (strategic group map, strengths/weaknesses, strategies of each)

Economy (exchange rates, etc.)

Other

·Internal analysis, including (strategy in each area, strengths/competencies, weaknesses):

Marketing

Production

Human Resources

Finance

Strategy (overall – how/why it is/isn’t working)

·The plan:

Plan for next year (Be very specific.How much are you going to produce?What is the price?How much will be shipped to each area, etc.?)

Plan for about next two years.

·Appendix:Graphs to back up analysis.Present them in order.Cite every one.Label them properly.

Assessment Center.Each student enrolled in Management 441 is required to complete an exercise called an assessment center.The intent of this exercise is to assess the degree to which your business education has helped you to develop the managerial skills that you will need to successfully embark on a business career.Since the intent of the assessment center is basically the same as the intent of this course, it has been incorporated into Mgmt. 441.

The assessment center will take place on campus on Friday, November 1 and Saturday, November 2.Your participation is limited to one 3-hour session on either day.Sessions will hold 40 students, and will be assigned on a first-come, first-served basis.Sign up for individual sessions will be done on the web in early October.

You will receive detailed feedback on your management-related skills from the administrators of the center, along with suggestions on how to strengthen these skills in the future.Related, the administrators of the assessment center will score your performance that will be translated to your grade for this project in this class (5% of total grade).

Since the assessment center is a required project for seniors, you will not receive a course grade for Mgmt. 441 if you do not participate in the assessment center.For more information, contact Dr. Kathryn Martel, Associate Dean, (She is coordinating the project.) or me.

Summary of graded works and their respective weights:

 

Graded Project	Weight	Points		Graded Project	Weight	Points
Mid-Term #1	15%	150		Simulation	15%	150
Individual Report	15%	150		Company Memos	10%	100
Mid-Term#2	15%	150		Strategic Plan	15%	150
Participation	10%	100		Assessment Center	5%	50

I will keep track of scores with percentages as listed in the table below.If you prefer to use the “points” method, refer to the third column, “Points.”So, if you get a score of A- on exam #1, the percentage score is 92, the number of points is 138 (See the column headed “exam” under “Points” below.)Since both exams, the individual report, the simulation, and the strategic plan are all 15% of the total grade, this column works for all those projects.

For your participation grade and the four memos taken together (the average score of the memos), go to the column headed “Part.” under “Points.”An A- on participation or on all the memos taken together (the average score for the memos) is 92%, 92 points, etc.

Your performance in the assessment center will be scored by the people conducting the center.Since the assessment center is 5% of the overall grade, use the last column labeled “Center” to determine your points here.

 

Grade	%	Points						Grade	%	Points
		Exam	Part.	Center						Exam	Part.	Center
A+	100	150	100	50				C+	78	117	78	39
A	95	143	95	48				C	75	113	75	38
A-	92	138	92	46				C-	72	108	72	36
B+	88	132	88	44				D+	68	102	68	34
B	85	128	85	43				D	65	98	65	33
B-	82	123	82	41				D-	62	93	62	31
								E	55	83	55	28

The grade cut-offs for each grade are:
 

Grade	Percentage score	Points
A	90-100	900-1000
B	80-89	800-899
C	70-79	700-799
D	60-69	600-699
E	Below 60	Below 600

OTHER INFORMATION

Since the case method involves student-centered learning, my role is to facilitate that process.I will present theory that is 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 presentations and discussions 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 throughout the paper or argument.

As a general rule, I will not accept assignments late, including taking exams.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 an exam or paper due.If a make-up exam or assignment is allowed, it probably will be altered in some way in order to be fair to everyone.Make-up exams may consist of all essay questions.

Fatal errors.As you know, the School of Business has a “fatal error policy.”It is intended to encourage you to use professional standards in your work.Fatal errors are defined as:

·each different word misspelled

·each sentence fragment

·each run-on sentence or comma splice

·each mistake in capitalization

·each serious error in verb tense or subject and verb agreement

·lack of conformity with assignment format

·each serious error in punctuation which obscures meaning

·each improper citation, or lack of citation where one is needed

More than three errors per page, or ten throughout the paper, are unacceptable.If these errors are found, I will stop reading the paper and return it to you without a grade.You must correct the errors and return the paper at the next class session.The returned paper will be graded and reduced one letter grade.A paper that still has fatal errors after it is returned and re-submitted can receive a grade no higher than D.The same standards apply to the strategic plan.However, since there is no time for re-writing the strategic plan, a paper exceeding the error limits will be reduced by one letter grade. 

SCHEDULE

·For each day where there is a “case discussion,” be ready to orally participate.To prepare, use the “Strat-Tutor” software.See the inside cover of the textbook for the internet address.Your username is “thompson and password is “useit.The homepage is updated occasionally so be sure to look for the link for the 11^th. edition.

·“Notes” (4^th. column) refers to PowerPoint Files attached to this syllabus on my homepage.

·Section 074:Please read the following schedule “by the week.”For our meeting on August 23, the assignments for both August 21 and 23 apply, etc.

 

Date	Topics/Assignments	Readings/Cases	Notes
Aug 21	Course content, requirements.What is strategic management?	Chapter 1.(A “chapter” assignment always refers to the main textbook.)	Model
Aug 23	Vision, mission.	Chapter 2. “Service with a smile,” St. Louis Commerce, March, 1999.“Can Toyota get its mojo back,?”Newsweek, Jan. 17, 2000, 46-52.	Mission Vision Outline
Aug 28	Overall strategic management. Robin Hood case discussion.	Case #24 – in the textbook.
Aug 30	External analysis, industry and competitive situation.	Chapter 3 plus pp. 247-249.	Ext
Sept 4	Analyze the brewing industry.	Cases 5, 6, and 7.
Sept 6	Competitive dynamics in the industry, industry life cycle. Analyzing the company’s strengths and weaknesses.	Chapter 4.	Industry Internal

 

Sept 11	Strengths and weaknesses, continued from above.		Position Valuechain
Sept 13	Implementation of strategy.	Chapters 9, 10, 11.“Turning goals into results:The power of catalytic mechanisms,” Harvard Bus. Review, July-August., 1999, 71-82.“High-performing, loyal employees:The real way to implement strategy,” Strategy & Leadership, Nov./Dec., 2000, 28-33.	Implement Impl2 SCA
Sept 18	Dell Computer case discussion.	Case #14.
Sept 20	Outback Steakhouse case discussion.	Case #16.
Sept 25	Mid-term Exam #1.
Sept 27	Business level strategy.	Chapters 5 & 6.	Formulate Genstrat
Oct 2	Starbucks case discussion.	Case #1 Individual report due.Assignment coming.
Oct 4	Corporate level strategy.	Chapters 7 & 8. Also refer to vertical integration in chapter 5.	BCG GE
Oct 9	Black & Decker case discussion.	Case #22.
Oct 11	Global strategy.	Review GBA 400 on international issues, pp. 185-200 in textbook.	Multinational
Oct 16	Acer in Canada case discussion.	Case #15.
Oct 18	Simulation workshop; prepare for first decision.	Simulation manual.

 

Oct 23	Mid-term Exam #2.	Section 074:Exam first half of class time.
Oct 25	Compensation time for the Assessment Center	Section 074:Compensation time second half of class time.
Oct 30	Managing your company.	Decisions for year 11 are due.We will discuss if due at beginning or end of class. * Section 074:I will trade you some class time on Thursday so we can get a decision on Tuesday and Thursday.
Nov 1	Managing your company.	Year 12 decisions due.
Nov 6	Managing your company.	Year 13 decisions due. Company memo #1 is due.
Nov 8	Managing your company.	Year 14 decisions due.
Nov 13	Managing your company.	Year 15 decisions due.Company memo #2 is due.
Nov 15	Managing your company.	Year 16 decisions due.
Nov 20	Thanksgiving Break	No Class
Nov 22	Thanksgiving Break	No Class
Nov 27	Managing your company.	Year 17 decisions due.Company memo #3 is due.
Nov 29	Managing your company.	Year 18 decisions due.
Dec 4	Managing your company.	Year 19 decisions due.Company memo #4 is due.
Dec 6	Managing your company.	Year 20 decisions due.
Dec 13	Final exam/strategic plan due.	Section 092, 8:00 – 9:40 a.m. Section 074, 6:30 – 8:10 p.m.