MGMT 102: STRATEGY

School of Business Singapore Management University

Young Rok Choi 2006/07 Term 2 Week 01-1 Introduction & Case Analysis Method
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Course Motivation Why are some firms more successful than others?

Course Objectives
Comprehensive understanding of
Competitive advantage Strategy formulation Strategy implementation processes

Ability to identify strategic issues and design appropriate courses of action

Evaluate strategy: Role of analyst Recommend strategy: Role of consultant Manage strategic process: Role of manager

To have fun!
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Course Material & Format

Required material (Course Packet)
Textbook: Strategic Management: Creating Competitive Advantages (3rd Edition), by Dess, Lumpkin, & Eisner. 2006. McGraw-Hill.
SMU Bookstore, SMUverts

Cases: Harvard and Ivey cases

Li Ka Shing Library (Level 2), SMUverts

Lecture Case presentations, analyses and discussions Group project

Written analysis In-class presentation

Important People
YOU Group members & classmates Instructor: Young Rok Choi
Office hours: Wed 2:00-4:00 in Business Building #0516 & by appointment Phone: 6828 0728 E-mail: yrchoi@smu.edu.sg

SMU Vista

Grading System
Individual Work
Class Participation & Case Discussion (15%) Case write-ups (3) (15%) Final Exam (30%)

Team Work
Case Analysis and Presentation (10%) Term Project--presentation and report (30%)

Individual vs. Team Activities: Peer review No late assignment will be accepted There will be no make-up exam

Class Participation (15%)

Come to class well prepared Contribute ideas and analysis to the class discussion Listen carefully to your classmates and suggest supporting or alternative views Assessment:
Quality of contribution Quantity of contribution Attendance

Case Reports (15%) Eight cases will be analyzed

Choose one in each case group below (three in total)
Case Group A: Cases 2, 3 Case Group B: Cases 4, 5 Case Group C: Cases 6, 7, 8

For each case, answer two discussion questions

Not exceed one page in length for each question Submit your write-ups at the beginning of the class

Sign up for your selection of cases

A maximum of 20 students may sign up for any one case

Final Exam (30%)

Covers the entire contents of this course (weeks 1 thru 13) 2 hours long Short-answer, multiple choice, essay, and/or case analysis questions Exams will be open book and open notes

Case Presentation Team size: No more than 6 (usually 5, 6) (10%) Present in-depth analysis on one assigned
case
30 minutes

Choose one from among cases 2~8 Presentation will include:

A brief summary of the case Main theme (decision task) Analysis Alternatives Suggested course of action Implementation

For detail guidelines, refer to the company analysis part of Team Project Submit one hard copy of your presentation slides

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Term Project (30%)

Select your term project firm (thus, industry)

from the case lists of any strategy textbooks or your own sources

Term Project includes: Industry and company analyses One written report (20%) One in-class presentation (10%)

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Term Project (30%)

Written Report (20%)

Written Report Submission MS Word, 1.5 line-spaced, using 12-point size font, and should not exceed 20 pages (excluding appendices and references) Provide the complete name of the team members, student ID number on the cover page The report should contain the following sections:
(1) A cover page listing team members (2) Table of contents (3) Executive Summary (4) Company Background/History (5) Industry Analysis (6) Company Analysis (7) List of references (8) Exhibits (Tables and charts)
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Term Project (30%)

Written Report (20%)

Industry Analysis (Examples)

Industry Environment History of the industry (development stages) Global/local market description (e.g., size of major markets, products, customers and end users, pricing structure) Industry structure (Porters five forces analysis) Competitive Environment Key success factors (competitive advantages) Major strategic groups Value chain analysis (for either strategic groups or major players) Identify and compare key strategies pursued by major players in the industry Macro Environment Special strategic issues facing the industry Changes in governmental policies, in demographics, globalization, etc Use Exhibits for detailed data and analysis (Porters five forces, value chain, etc)

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Term Project (30%)

Written Report (20%)

Company Analysis
Resources, Core competences, Value chain, and Tracking/discussion of company performance over time Key strategic issue (either problems or opportunities) Two or three alternatives Recommended course of action Implementation issues Industry analysis part of your project should provide implications for company analysis Use appendix for detailed data and analysis (Competitive advantage, financial, and value chain analyses)

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Term Project (30%)

Presentation (10%)
Cover only the most important issues & leave the details for the written report Max 20 minutes; 5 minutes Q&A No rules for the selection of presenter(s) and dress code

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Course Schedule
Week 1.1 2.1 2.2 3.1 Date 04-Jan 09-Jan 11-Jan 16-Jan Topics covered Introduction to the course, case analysis, project. What is strategy? Strategic management process External analysis and industry structure Case discussion (Industry analysis) Internal analysis, resources, and core competence Case discussion (Internal environment) Business-level strategy; value chain and positioning Case discussion (Business-level strategy) Required Readings/Cases SM Chapter 1 Handout 1: What Is Strategy? SM Chapter 1 SM Chapter 2 Case 1: Chinese Fireworks Industry

3.2
4.1 4.2 5.1 5.2 6.1 6.2 7.1 7.2 8

18-Jan
23-Jan 25-Jan 30-Jan 01-Feb 06-Feb 08-Feb 13-Feb 15-Feb

SM Chapters 3 and 4
Case 2: Southwest Airlines-1993(A) SM Chapter 5 Case 3: Samsung Electronics

Competitive dynamics & Strategy in high-tech industries

Case discussion (Competitive dynamics) Case discussion (Strategy in high-tech industries) Corporate strategy: Vertical integration Case discussion (Corporate strategy and integration)

Handout 2: Hitt chapter

Handout 3: Hill chapter Case 4: Progressive Corp Case 5: Google Inc. SM Chapter 6 Case 6: ZARA: Fast Fashion

RECESS WEEK

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Course Schedule
Week 9.1 9.2 10.1 10.2 10.3 Date 27-Feb 01-Mar 06-Mar 08-Mar 10-Mar Topics covered Corporate strategy: Diversification, M&A, and alliances Case discussion (Corporate advantage and M&A) International strategy Case discussion (International strategy) Make-up class Required Readings/Cases SM Chapters 6 Case 7: Newell Corp. SM Chapter 7 Case 8: Lincoln Electric: Venturing Abroad Review of Project Progress

11.1
11.2 12.1

13-Mar
15-Mar 20-Mar

Corporate governance/ strategic leadership

Corporate governance/strategic leadership discussion Strategy and organization structure

SM Chapters 9 and 11
Handout 4: Jack on Jack Handout 5: Enron: On the side of Angels SM Chapter 10 Review Southwest and Lincoln cases

12.2
13.1 13.2 14 15

22-Mar
27-Mar 29-Mar

Project Presentations & Written Term Project Report Due

Project Presentations Project Presentations & Wrap-up Revision Final Exam

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Case Analysis

A case
A situation involving a managerial problem or issue that requires a decision A variety of conditions and circumstances facing an organization at a particular time

Lecture-oriented classes vs. Cases

An opportunity to use concepts, practices, and theories Apply what you have learned in your course work Judgment, as opposed to rote memory and repetition, is one key to top management success. Exposure to a broad range of situations Different types and sizes of organizations, a variety of industries

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Case Analysis Objectives

An opportunity to develop, sharpen, and test your analytical skills at:

Assessing situations Sorting out and organizing key information Asking the right questions Defining problems and opportunities Identifying and evaluating alternative courses of action Interpreting data Evaluating the results of past strategies Developing and defending new strategies Interacting with other managers Making decisions under conditions of uncertainty Critically evaluating the work of others Responding to criticism

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Case Method

Expectations
Active, effective participation of students The student must get involved and take the primary responsibility for his or her learning Students must accept and maintain ownership of the discussion, i.e. it must be student driven.

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Case Method

A suggested outline for preparing cases

Summary of the Decision Situation
Gaining familiarity (facts, certainty/uncertainty of information) Recognizing symptoms (something as not expected or desired, not problem itself) Identifying goals Conducting the analysis (systematic using theories and models)

Problem Identification
Comparing goals to facts (predicaments); multiple, complex problems Prioritize problems regarding timing, importance, etc.

Action Planning
Identification of Alternatives Key decision criteria used to evaluate each alternative Comprehensive analysis of the alternatives using key criteria Recommendations, including implementation guidelines

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