MANA 4385 - Industry and Competitive Analysis - Fall 08

COURSE DESCRIPTION

The Industry and Competitive Analysis course is concerned with the collection of information about a firm’s external environment and internal resources and capabilities, and the analysis of that information in order to make strategic decisions. The course will tend to take the perspective of the entire organization, but may also consider the perspective of a particular business unit or division.

COURSE OBJECTIVES

1. To introduce students to a strategic conceptual framework
2. To introduce and familiarize students with a set of analytical tools for strategy formulation and implementation
3. To help students sharpen their analytical and reasoning tools
4. To help students practice their communication skills

COURSE TEXT

Barney, Jay and Hesterly, William, Strategic Management and Competitive Advantage: Concepts and Cases, 2nd Ed., Pearson Prentice Hall, 2007.

One alternative available to students is to purchase the book, either in its print or digital versions, from the Prentice Hall website – www.prenhall.com. If interested in the digital version, students should click on the Safari-X link located in the Prentice Hall screen. The book is also available at amazon.com, ebay.com and other on-line bookstores.

Additional reading material in the form of articles or cases may be handed out in class or be available for downloading from WebCT.

TENTATIVE COURSE EVALUATION

Assignment	Points
Exams (3)	300 (100 each)
Consulting Case Analysis	65
Consulting Group Presentation	65
Top Management Team Feedback	45
Class Attendance and Contribution	25
Total	500 points

Grading

Grade	Percent Range	Total Points
A	93 – 100	465 and above
A-	90 – 92.9	450-464
B+	87 – 89.9	435-449
B	83 – 86.9	415-434
B-	80 – 82.9	400-414
C+	77 – 79.9	385-399
C	73 – 76.9	365-384
C-	70 – 72.9	350-364
D+	67 – 69.9	335-349
D	63 – 66.9	315-334
D-	60 – 62.9	300-314
F	Below 60	0-299

Exams

There will be three exams all following the same format: multiple-choice questions. In addition, one short-answer essay (from a choice of two questions) may be included. The first and second exam will cover three chapters each, while the third exam will cover the last four chapters of the book. Exams will also include questions about the video cases, group presentations, and other topics discussed in class.

Groups

Five groups will be created. The groups will consist of four to six members depending on class size. Students will act as consultants who evaluate and make strategic recommendations for the top management of a company. A list of group members is due on the fourth class of the semester. Consulting teams are responsible for preparing an executive summary and a class presentation that includes a strategic analysis of an organization selected from a set of cases included in the textbook. Cases will be assigned during the fourth class of the semester. Each team will also act as the top management team of a different case in order to assess the analysis conducted by another team.

Consulting Case Analysis

Each group will submit one six page Executive Summary of a case analysis. This document needs to include a recommendation for action and the critical information from the case needed to support the recommendation. The six page limit is intended to encourage conciseness and tight argumentation. The use of appendices is encouraged to provide supplementary support for the teams’ recommendations. The case analysis should be targeted to the critical executive decision maker in the case. Executive Summaries are due one week prior to the case presentation/discussion. Each group will need to submit six to seven copies of the analysis, one for me and one for each of the team members who will be judging the analysis and recommendations. The structure of the report will be discussed in class and posted in WebCT. Decision questions for each of the cases are provided at the end of this syllabus.

Consulting Group Presentation

In addition to the written executive summary, each group will present their analysis and recommendations to the class. Presentations should take about 45 minutes, which permits time for questions from the top management team members and for general class discussion. The group’s role in the presentation is that of a consulting team that has been hired by the chosen company to conduct a strategic analysis and make recommendations for the chosen company. A case presentation evaluation form outlining specific grading criteria will be discussed in class and posted in WebCT.

Top Management Team Feedback

Each team will also act as the top management team for one case presentation. Top management teams will be expected to have thoroughly read the consulting team’s executive summary and to have prepared questions for the consulting team that reflect a thoughtful and critical evaluation of their analysis and recommendations. Your questions will be discussed with the consulting team at the conclusion of their presentation. The instructor will grade the quality of the questions and analysis of each member of the top management team.

Class Attendance and Contribution

All students are expected to participate in class discussions and to display interest during class by raising thoughtful and relevant questions that enrich discussions. It is also expected that students will be present and prepared for every class, and willing to share their views in the classroom discussion, both voluntarily and when called upon to do so. Class contribution will be assessed particularly during “video cases” and will be based on quality and quantity of the participation, and on the maintenance of a supportive learning environment in the classroom. Preparation questions for the “video cases” will be posted in WebCT. Class attendance will be particularly noted during group presentations. Students are expected to attend all group presentations.

Make-Ups/Extra Credit

Under extreme circumstances (documentation will be required), make-up exams or extra assignments may be considered. However, these exceptions are not granted for convenience only. Since exam and due dates are known well in advance, students should not find that an unexpected business trip will prevent them from completing the work required as scheduled.

WebCT

WebCT will be used in this class as a course management tool to post announcements, the course syllabus, lecture presentations, preparation questions, and grades. To access WebCT for this class, please obtain a WebCT ID and login at: http://www.uh.edu/webct. If you have questions about WebCT or need technical assistance, you can click on the “get help” link on the WebCT website, call the help-line at 713-743-1411 (M-F 8am-8pm), or visit the IT Support Center in room 56 of the library (M-F 8am-8pm). Contact me for any course-related questions.

NOTES ON CLASSROOM POLICIES

• Each student will use name cards to facilitate class discussion.
• Attend classes regularly and on time. If you need to arrive late or leave early, do it so that you do not distract the class.
• Because this is an integrative class, it is expected that a variety of viewpoints will be represented in class discussion. This is important and necessary for strategic analysis. All opinions are worth hearing and are to be respected.
• Writing is important and is taken seriously in this class. Errors of grammar, syntax, and spelling indicate either haste or a lack of clarity in thinking. Consider having friends read your reports before submission. Also, there is a Writing Center on campus that is available for your consultation. The UH Writing Center is located in 217 Agnes Arnold.
• If you e-mail attachments, please check for viruses.

ACADEMIC HONESTY

The University of Houston Academic Honesty Policy is strictly enforced by the C.T. Bauer College of Business. No violations of this policy will be tolerated in this course. A discussion of the policy is included in the University of Houston Student Handbook which can be found at http://www.uh.edu/dos/hdbk/acad/achonpol.html. Students are expected to be familiar with this policy.

ACCOMMODATIONS FOR STUDENTS WITH DISABILITIES

The C.T. Bauer College Business would like to help students who have disabilities achieve their highest potential. To this end, in order to receive academic accommodations, students must register with the Center for Students with Disabilities (CSD) (telephone 713-743-5400), and present approved accommodation documentation to their instructors in a timely manner.

INSTRUCTOR EVALUATIONS

The Bauer College of Business has a policy that requires all of its instructors to be evaluated by their students. The results of these evaluations are important to provide feedback to instructors on how their performance can be improved. In addition, these evaluations are carefully considered in promotion, salary adjustment, and other important decisions. We openly encourage students to provide feedback to the instructors and to the college through the evaluation process.

TENTATIVE COURSE SCHEDULE

Date	Topic	Description
Tue. Aug. 26	IntroductionWhat is strategy?	Class Introductions Description of Course Structure Reading: Chapter 1

Tools of Strategic Analysis

Date	Topic	Description
Thu. Aug. 28		No Class
Tue. Sept. 2	External Environment	Reading: Chapter 2
Thu. Sept. 4	External Environment	Video Case “Dunkin Donuts” Formation of Groups and Case Assignment
Tue. Sept. 9	Internal Environment	Reading: Chapter 3
Thu. Sept. 11	Internal Environment	Video Case “Starbucks”
Tue. Sept. 16	Application	Reading: Case 1-4 “Harlequin Enterprises: The Mira Decision”
Thu. Sept. 18	Review	Review for Exam 1
Tue. Sept. 23	Exam 1

Business Level Strategies

Date	Topic	Description
Thu. Sept. 25	Description of team project and team meeting
Tue. Sept. 30	Cost Leadership	Reading: Chapter 4
Thu. Oct. 2	Cost Leadership	Video Case “Whirlpool”
Tue. Oct. 7	Product Differentiation	Reading: Chapter 5
Thu. Oct. 9	Product Differentiation	Video Cases “Skechers USA” and “Marriot” Case Analysis due: “Nucleon, Inc.” (3-2)

Corporate Strategies

Date	Topic	Description
Tue. Oct. 14	Vertical Integration	Reading: Chapter 6
Thu. Oct. 16	Vertical Integration	Case Presentation: “Nucleon, Inc.” (3-2)
Tue. Oct. 21	Review	Review for Exam 2 Case Analysis due: “L’Oreal’s Growth Strategy”(3-4)
Thu. Oct. 23	Exam 2
Tue. Oct. 28	Corporate Diversification	Reading: Chapter 7
Thu. Oct. 30	Corporate Diversification	Case Presentation: “L’Oreal’s Growth Strategy”(3-4)
Tue. Nov. 4	Organizing to Implement Corporate Diversification	Reading: Chapter 8
Thu. Nov. 6	Organizing to Implement Corporate Diversification	Video Cases: “Student Advantage” and “Hot Jobs” Case Analysis due: “Ben & Jerry’s – Japan”(3-8)
Tue. Nov. 11	Strategic Alliances	Reading: Chapter 9 Case Analysis due: “Toyota’s Strategy and Initiatives in Europe”(3-9)
Thu. Nov. 13	Strategic Alliances	Case Presentation: “Ben & Jerry’s – Japan” (3-8)
Tue. Nov. 18	Strategic Alliances	Case Presentation: “Toyota’s Strategy and Initiatives in Europe”(3-9) Case Analysis due: “Vodafone; E Pluribus Enum” (3-11)
Thu. Nov. 20	Mergers & Acquisitions	Reading: Chapter 10
Tue. Nov. 25	Mergers & Acquisitions	Case Presentation: “Vodafone; E Pluribus Enum” (3-11)
Thu. Nov. 27	Thanksgiving	Holiday / No Class
Tue. Dec. 2	Review	Review for Exam 3
Thu. Dec. 4	Exam 3

DECISION QUESTIONS FOR CASE CONSULTING ANALYSES

Presentation #1: Nucleon, Inc. (3-2)

1. What should Nucleon do for the manufacturing of CRP-1 in Phase I and Phase II clinical trials? What should it do about manufacturing of CRP-1 in Phase III trials and commercialization?
2. What are the strengths and weaknesses of each option?
3. What should Nucleon do?

Presentation #2: L’Oreal’s Growth Strategy (3-4)

1. Is the Body Shop acquisition diversification or vertical integration? Why could it be described as diversification? Why vertical integration?
2. How would you classify L’Oreal’s diversification strategy? What commonalities do its different businesses have?
3. Do L’Oreal’s diversification moves typically add value?
4. What is your assessment of L’Oreal’s diversification within cosmetics? Which acquisitions have made the most and the least sense?
5. Does acquiring the Body Shop make sense? Does the acquisition add or subtract value from L’Oreal? Does it add or subtract value from the Body Shop?
6. What recommendations would you offer to L’Oreal in managing the Body Shop?

Presentation #3: Ben & Jerry’s – Japan (3-8)

1. Should Ben & Jerry’s introduce their ice cream in Japan the summer of 1998?
2. If they should, then how: partner with Yamada, Seven-Eleven Japan, or “go it alone”? If they shouldn’t, then why not?

Presentation #4: Toyota’s Strategy and Initiatives in Europe (3-9)

1. What are the terms of the strategic alliance between Toyota and PSA? What is your evaluation of the structure of the deal between the two companies?
2. Why did Toyota & PSA opt for a Minicar Joint Venture? Would either be better off alone?
3. What are the respective capabilities of Toyota and PSA? What does PSA have that Toyota does not have? What does Toyota have that PSA needs?
4. Why Kolin in the Czech Republic?
5. How does the alliance create value for each partner?
6. How do Toyota and PSA limit potential threats to the alliance – specifically, adverse selection, moral hazard, and holdup?
7. Will the alliance lead to a sustained competitive advantage? Why or why not?

Presentation #5: Vodafone; E Pluribus Enum (3-11)

1. What is Vodafone’s strategy? What is the role of acquisitions in that strategy?
2. How would you describe Vodafone’s approach to acquisitions? What kinds of relatedness does it try to leverage? What is your assessment of its approach?
3. How does Vodafone create value through acquisitions?
4. In what ways is Vodafone’s acquisition strategy a source of sustainable competitive advantage?