MANA 6383 - Strategic Management - Spring 09

Course Description

This course is about how an enterprise achieves and sustains a high level of success and the role the general manager plays in this process. How success has been or will be achieved is the enterprise’s strategy. It requires both analysis and action. The cases and concepts of the course take the total enterprise as the unit of analysis and the general manager as the key actor.

Developing the general management perspective is at the core of what we do in this course. A general manager is responsible for a multi-functional group (business, division, profit center, etc.) and is accountable for the strategic performance of that unit. But what we will learn has utility not just to the person at the “top” of the enterprise. Increasingly general management responsibility is shared. All members of the management team and the organization need to appreciate how their actions contribute to the overall success of the enterprise.

Instead of focusing on a particular functional area (e.g. finance, operations, marketing, accounting, etc.), this course provides you with a process for problem-solving and decision-making that requires you to build on, integrate, and apply the knowledge gained from those disciplines in order to develop an overall general management perspective. Because strategic issues are characterized by ambiguity, complexity and uncertainty, this course is as much about asking the right questions as it is about having the “right” answers. We will reach consensus on some issues, yet many among you will have differing interpretations on the most appropriate course of action. Such is the nature of strategy issues. Those of you with the need to reach the “right” answer may find yourself frustrated by the lack of definitive answers and multitude of reasonable courses of action. This is a reflection of the real world!

The course covers analytical tools and conceptual frameworks that aid in the development of judgment. The primary objective of the course is to develop expertise in formulating (analysis) and implementing (action) strategy. Although the course progresses from formulation to implementation, one cannot presume to fully understand strategy formulation without the realization of what it takes to implement strategic change.

Ultimately strategic choices represent a tension between what an organization needs to do given its competitive and market environment, what it can do given its resources and capabilities, and what it wants to do given the values and preferences of key stakeholders. The overarching framework that guides this course is provided below. The flow of the course is sequenced around this framework.

Course Objectives

  1. To understand the factors which affect a firm’s overall competitive position.
  2. To develop an appreciation of the complexity of the issues facing managers with business unit responsibilities.
  3. To learn how to formulate and implement strategies aimed at achieving and sustaining superior competitive performance over the long term.
  4. To develop the analytical and persuasion skills needed to convince others of this strategy.

Required Texts

  • Crossan, M.M., Fry, J.N. and Killing, J.P. Strategic Analysis and Action, Toronto: Prentice Hall. 6th Edition, 2005 (ISBN: 0-13-127822-3).
  • Digital Casebook provided by Prentice Hall. CoursePack Title: Strategic Management Cases. CoursePack ID: 295894. Page Count: 282. CoursePack ISBN: 0536064725. Online-only Price: $58.1.

To purchase and access your online CoursePack, you will need to do the following:

  1. Go to: http://www.xanedu.com/login.shtml?PackId=295894
  2. If you have previously registered for another CoursePack, log in. If not, in the Student section of the page, click on the link that reads ‘Register’. In the registration section, select ‘click here’ under “If you are a Student…”. Complete the registration page, and click Continue.
  3. Confirm your CoursePack selection, and click Continue.
  4. Complete your billing information, confirm and click Continue.
  5. After completing the purchase pages, you will be taken to your CoursePack.

Use of the WebCT tool

WebCT is a password-protected online course management system. In this course, the instructor will use WebCT to:

  • Upload class handouts for students to download.
  • Assign additional recommended readings.
  • Post grades. Each student will view his/her individual grades.

To get a WebCT ID and log on to WebCT please go to http://www.uh.edu/webct/ The first time you log on to WebCT your password will be your birthdate (mmddyyyy). You may change your password after you log on to WebCT.

Case powerpoint presentations will be uploaded every Friday after the case has been taught.

Tentative Course Evaluation

  • Class Contribution – 30 points
  • Group Midterm Report – 25 points
  • Individual Strategy Assignment – 20 points
  • Group Final Report – 25 points
  • Total – 100 points
POINTS: GRADE:
93-100 A
90-92 A-
87-89 B+
83-86 B
80-82 B-
77-79 C+
73-76 C
70-72 C-
60-69 D
below 60 F

Class Contribution: It is expected that you will be present and prepared for every session and share your views in the classroom discussion. I will feel free to call on any individual at any time. Since so much of the learning from a case-based course occurs in the classroom, class attendance and participation is critical. If you must miss a session it is your responsibility to (1) advise me of your absence by email, (dvera@uh.edu) and (2) arrange with your classmates for briefings, to pick-up hand-outs, etc. You should understand that frequent absence will seriously damage your class contribution grade.

In general I evaluate contributions in an ascending order from good chip shots, to quite substantial comments, to case cracking contributions. I believe that challenge and debate are important to discovery and understanding, and I appreciate the willingness of individuals to engage in such activities with their classmates and with me. Reciting case facts, repeating points already made, or simply agreeing with your classmates’ arguments does not constitute a meaningful contribution. Your goal should be to provide insights that pass the “so-what” test. This can range from helping to sort out the key facts in a complex case and to develop an analysis that builds on prior comments, thereby moving the class discussion forward.

Every student is important to the class discussion. It is equally important that we listen to one another and attempt to build upon or constructively critique prior comments. Try to resist the temptation to jump to topics that are not specifically open for discussion. Some of the things that will have an impact on effective participation and on which you will be evaluated include:

  • Are you a good listener?
  • Are your contributions relevant to the discussion? Do your comments relate to the comments of others and to the themes that the class is exploring together?
  • Do your comments add to our understanding of the situation? Are you incisive? Do you cut to the core of the problem?
  • Are you willing to challenge the ideas that are being expressed?
  • Are you willing to test new ideas or are all your comments “save”? (For example, do you repeat case facts without analysis or conclusions or repeat comments already made by someone else?)
  • Do you integrate material from past classes or case discussions where appropriate? Do your comments reflect cumulative learning over the course and the entire curriculum or do you merely consider each case in isolation?

Preparation for the case discussion should begin with a quick reading of the assigned text chapters and the case material. Then, it is worthwhile to review the assignment questions for clues as to what issues require special attention. The next step is to reread the case carefully, taking notes that sort information, facts, and observations under a number of relevant headings. Most cases require that you perform some quantitative analyses. Finally, preparation will include notes that can be used to guide your contribution to class discussions. Please ensure that you have used in your analysis the frameworks, tools, and ideas from the readings and the previous class discussions as appropriate. Doing the reading(s) first is advised. Also ensure that you have exploited the material in the case exhibits as much as possible. Many cases will have a question or two for which you have to make a specific decision recommendation. Your recommendation should be realistic, actionable, and supported by analysis (including numerical where appropriate). You should understand the decision criteria, formulate and evaluate (quantitative and qualitative assessments) alternatives, and select a choice. You should also understand the assumptions that underlie your recommendation. Finally, your recommendation should consider implementation: who should carry out your suggestions, when they should do it, and how.

During class, you should be prepared to lead off the discussion of any question in a significant way as well as to discuss salient issues which are not addressed per se in the assigned questions. As in any case discussion, it is crucial that you are well-prepared, listen carefully to others, and build on/critique previous comments. Clearly, you must participate in class if you are going to share your ideas with others. Occasionally, students find that it is easier to participate effectively from the point of view of a particular person or functional area, or to take on the role of devil’s advocate or expert (if expertise is possessed) on the topic. It may be impossible for all students to participate in each class. It is the quality of comments, not the quantity, that is germane. In grading class contributions, I will be assessing the extent to which you have established a meaningful presence in the classroom, over the course of the semester, by making solid contributions on a regular basis. Feedback about class contribution will be offered to students during office hours. Below are examples of how your class contributions will be calibrated:

  • Outstanding contributor: Contributions in class reflect exceptional preparation. Ideas offered are always substantive, yield one or more major insights, and provide direction to the class. Arguments are well-substantiated and persuasively presented. If this person were not a class member, the quality of discussion would diminish significantly.
  • Good Contributor: Contributions reflect thorough preparation. Ideas are usually substantive, provide good insights into the topic under discussion, and sometimes provide direction for the class. Arguments reflect clear thinking. If this person were not a member of the class, the quality of discussion would be diminished.
  • Adequate Contributor: Contributions in class reflect satisfactory preparation. Ideas are sometimes substantive, provide generally useful insights, but seldom offer a major new direction for the discussion. Arguments are sometimes presented, and are fairly well-substantiated and sometimes compelling. If this person were not a member of the class, the quality of discussion would be somewhat diminished.
  • Non-participant: The person has said little or nothing in this class to date. Therefore, there is not an adequate basis for evaluation. If this person were not a member of the class, the quality of discussion would not be changed.
  • Unsatisfactory Contributor: Contributions in class reflect inadequate preparation. Ideas offered are seldom substantive, are often off-point, provide few (if any) insights, and give no constructive direction to the class. Clear argument on the topic at hand and/or integrative comments are absent.

Occasionally, some students find it difficult to participate effectively in class because of language or other challenges. Please speak with the instructor if class participation is a significant concern for you.

Group Midterm Report (Take-home Case): I will assign a case as a take-home exam. The class will be divided into groups of 5 students for the group midterm report. You will have 2 weeks to form your own groups and to give me lists of the requested members - after that time, I will form the groups.

Your group will have 1 week to analyze the case and submit one response per group. Your response must respect the following guidelines: maximum 5 pages (excluding exhibits etc.), times new roman 12-point font, and double line spacing.

To analyze the case, the following structure will help push your thinking:

  1. Use the Diamond-E framework to identify all of the pertinent problems/issues that management needs to address.
  2. Perform whatever analysis and evaluation is appropriate.
  3. Propose an action plan and set of recommendations addressing the issues you identified.

Please note that your written report does not have to follow this format. The expectation of the written report is that it will be a memo to the key decision-maker in the case. No collaboration among groups is permitted for the midterm report.

Individual Strategy Assignment: There will be one assignment for you to prepare on an individual basis. It will be based on a personal analysis of a business with which you have been associated. As such, it will be handled by me on a confidential basis. I will grade and comment on the assignment and return it to you. The assignment has two parts. The length limit is four pages, double space, 2 pages for each part.

Part #1:

Please apply the concept of strategy as developed in the Strategic Analysis text to:

  1. Describe the strategy of the organizational unit that you were most closely associated with, using the four strategy components (goals, product market focus, core activities and value proposition;
  2. Evaluate this description in terms of
    1. Internal coherence of the four strategy components
    2. Capacity to provide guidance for management decisions within the unit. (Not in terms of its broader Diamond-E fit, that is part 2, see below).

Some organization units have explicit strategies, some implicit; some have clear strategies, some confused; some have consistent strategies, some conflicted; whatever, it is your job to work out what is (or isn’t) there and to tie this to the capacity of the “strategy” to provide management decisions.

Part #2:

Please identify and describe the weakest link (lack of fit, greatest stress, etc.) between the unit’s strategy and one of the other components of the Diamond-E. Outline and justify one or two practical and specific recommendations that you (or your prior boss, etc., - just make sure you specify the actor) might implement to address the weakness. Don’t try to cover the whole Diamond-E. One purpose of this assignment is to force prioritization. Pick the one most vulnerable link and deal with it.

Group Final Report (Take-home Case): There will be a take-home final examination. It will be similar to the midterm exam, in that it will also be a case and will be performed by the same groups. No collaboration among groups is permitted for the final report

Assumptions and Expectations

You are expected to be fully engaged in the entire learning process. This means devoting time and energy to preparation before class, including learning team meetings, listening to others during class discussions and engaging in class discussions. Most of the case studies we will be working on in this course are undisguised. We will be dealing with real people and the real company. This encourages engagement in the case situations and facilitates follow-up on developments subsequent to the case events. It also creates some potential disadvantages that I would like to ensure we minimize. The process of analyzing, discussing and learning from cases depends in a significant way on discovery - discovering what the real opportunities and problems in the case are as it currently stands, discovering and evaluating the possible ways of dealing with them, and discovering the lessons that can be drawn for continuing use. The value of this process is diminished if we short-circuit it by jumping ahead to find out ‘what happened’ before we have done our best to understand the case. Similarly, we lose something when someone with special knowledge of the situation does not respect the necessary process of analysis.

Unless explicit instructions are received from your instructor to the contrary, your preparation must be limited to the information provided by your instructor(s) for your segment or module, plus your own experience and that of your class peers. Class contributions should be based exclusively on your preparation and discussions with members of your group or classmates, and not augmented with information obtained anywhere else. Information related to cases that has been obtained from sources other than your instructor is not permitted to be used for class contribution purposes. Such prohibited information includes, but is not limited to, the following:

  • Hand-outs, including follow-on (“B”) cases
  • Exam or report feedback (related to a particular case) for other students or provided in other cohorts or years
  • Notes, spreadsheets, etc. specific to cases (obtained before the case has been taught) prepared by students in other cohorts or years
  • Company information that is not provided in the case (and that is not derived from your own experience)
  • Teaching notes

If it is determined that such prohibited information is used in class discussions, such an incident will be deemed to be a violation of the college’s code of professional conduct.

The study questions assigned with each case and included at the end of the syllabus are designed to guide and stimulate your analysis and preparation. They are not “assignments” to be handed in. The textbook and readings assigned are your responsibility. They will not usually be covered in detail during class but will be utilized as they apply to the issues at hand. ‘Lecturettes’ may be used throughout the course to supplement the case discussion.

To assist in class participation and knowing your names, name cards will be used for each student. Except for emergency situations, please turn off all pagers and cellular phones.

Using your computer during class for personal activities such as reading/writing email, writing letters, surfing the Web, playing games, etc. is also distracting and counter productive and violates our norms.

Deadlines and Length Limits

If for extreme circumstances you are going to be late in submitting an assignment, you are expected to contact me. Lateness will result in a penalty in the grade for the project. The penalties are as follows:

  • Minor delay (<1 week) -10 points
  • Major delay (1 week or more) you receive 0 points for the assignment

A similar policy is in place for projects that exceed length limits. Minor excesses (10% or less) will normally result in penalties of -5 points, and significant excesses (more than 10%) in a penalty of -10 points.

Plagiarism

Students must write their reports and assignments in their own words. Whenever students take an idea, or a passage from another author, they must acknowledge their debt both by using quotation marks where appropriate and by proper referencing such as footnotes or citations. Plagiarism is a major academic offence. All required papers may be subject to submission for textual similarity review to the commercial plagiarism detection software under license to the University.All papers submitted will be included as source documents in the reference database for the purpose of detecting plagiarism of papers subsequently submitted to the system.

Accommodations for Students with Disabilities

The Center for Students with Disabilities provides a wide variety of academic support services to all currently-enrolled UH students who have any type of mental or physical disability or either temporary or permanent nature. If you feel you may need assistance of this nature, you may wish to call the Center at 3-5400. In addition, you should let me know about any special needs as soon as possible.

Instructor Evaluations

The CBA 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 constructive feedback to the instructors and to the CBA through the evaluation process.

TENTATIVE COURSE OUTLINE

PART 1:  STRATEGIC ANALYSIS

Module 1:  Introduction to Strategy

In this section, we consider the role of the general manager in the success of the organization and introduce the basic concepts of strategy.

  • Jan 22 Overview of Diamond E framework
    Readings: Chapters 1, 2, 3

Module 2:  Environmental Analysis

This module explores how the firm’s environment affects company performance. Overall, there are two concerns that are central to business unit strategy. The first is the structural characteristics and attractiveness of the industry in which the firm competes. A central premise is that all industries do not offer equal opportunities for sustained profitability. The second concern is the firm’s position within its industry. Competitive position determines the firm’s long-run performance against the industry average. Superior competitive positions are the result of many factors, but ultimately derive from investments in resources, assets, and other capabilities that generate superior value for customers. In the long run, however, above average profits are only sustainable where they involve activities that are difficult for competitors to imitate or substitute for, and where the value of those activities can be appropriated by the firm.

  • Jan 29 Case: Cola Wars Continue: Coke and Pepsi in 2006 (HBS 9-706-447)
    Readings: Chapter 4
  • Feb 5 Case: Apple Inc: iPods and iTunes (Ivey 9B05M046)
    Readings: Chapter 5
  • Feb 12 Case: Wal-Mart Stores, Inc. (Ivey 9B06M068)  ***** Class with Dr. Barbara Carlin *****
    Deadline to form teams for the group midterm case

Module 3:  Resources and Capabilities Analysis

In the resource section we lower the microscope on how resources and capabilities are utilized in a strategic context. There are many lenses that we could apply including understanding the distinction between tangible and intangible assets as sources of competitive advantage, understanding the internal value chain of the business, understanding how opportunities can drive capabilities, and how unique resources and capabilities can be leveraged. Finally, we will try to gain an understanding of how resources and capabilities change, or fail to change in light of changes in the industry.

  • Feb 19 Case: Starbucks (Ivey 9A98M006)  ***** Class with Dr. Barbara Carlin *****
    Readings: Chapter 6
  • Feb 26 Case: Harlequin Enterprises: The MIRA decision (Ivey 9B03M007)
    Group Midterm case will be assigned

Module 4:  Management Preferences Analysis

This module further develops the notion of success. In building value for the firm, management often has a number of choices. Their personal preferences and those of their stakeholders (shareholders, customers, and employees) often shape their decisions. This module recognizes the importance of management preferences, the potential for competing interests, and how these preferences can shape organizational success.

  • March 5 Case: Merck & Co., Inc.: Addressing Third-World needs (A) (At HBS 9-991-021)
    Readings: Chapter 7

Module 5: Organizing to Deliver Strategy

This module examines the components of organization (structure, systems, staffing and leadership) to understand how they support or fail to support strategy.

  • March 12 Case: Lincoln Electric (HBS 9-376-028)
    Readings: Chapter 8
  • March 19 SPRING BREAK

Module 6:  Scope of the Firm

This section examines the leveraging of resources and capabilities that expand the scope of the firm, vertically, horizontally, or geographically.

  • March 26 Case: KTM – Ready to race (Ivey 9B05M036)
    Group Midterm case will be due

Module 7:  Comprehensive Analysis

In this final formulation module, we will integrate the previous modules to formulate a firm’s strategy. In doing so, you will need to decide:

  1. What does the firm need to do (environmental analysis),
  2. What can the firm do (resources and capabilities analysis)
  3. What does the firm want to do (stakeholders).
  • April 2 Case: Nestle-Rowntree (A) (At HBR: IMD011)
    Readings: Chapter 9

PART II:  IMPLEMENTING STRATEGY

Module 8:  Managing Strategic Change

This module puts the strategy that you formulated in the first part of the course into action. We focus on how change in either the environment or the firm makes the strategy dynamic.  The need for change is tied back to the success of the enterprise and we examine the general manager’s role in implementing strategic change.

  • April 9 Case: Campbell Soup Company (A) (Ivey 9B02M018)
    Readings: Chapter 10
    Individual Strategy Assignment will be due
  • April 16 Case: Audible.com (Ivey 9B00M004)

Module 9: Personal Action

The final module brings strategy down from the level of the CEO to the lower echelons of the organization.  This view from the middle presents a more challenging perspective on strategy as it co-mingles the day-to-day operating issues with strategic issues. This module surfaces the challenges of getting the job done with a strategic perspective.  Having developed a fuller understanding of what it takes to implement strategy throughout the organization we can cycle back to strategy formulation with a better sense of what is possible.

  • April 23 Case: GE Energy Management Initiative (A) (Ivey 9A94G005)
    Readings: Chapter 11
    Final case exam will be assigned
  • April 30 Cases: Sabena Belgian World Airlines (Ivey 9A94M003)
    Weytjens’ First Assignment (Ivey 9A94M004)
  • May 7 Final case exam will be due