Ramkhamhaeng University
Institute of International Studies
MBA Course
Strategic Management
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Course Overview
Strategic Management is an integrative course combining knowledge, skills, and abilities gained from prior MBA courses as well as introducing concepts specific to the field of strategic management.
Professor
Dr. Scott Droege
Western Kentucky University—USA
Required Text and Materials
Essentials of Strategic Management: The Quest for Competitive Advantage.2009. Gamble, John E. & Thompson Jr., Arthur A. McGraw-Hill Irwin. ISBN# 0-07-353030-1.
CaseTutor® Software (included with text)
Capstone Strategic Management Simulation® (This simulation will be provided by the professor; students do not need to purchase this).
Course Process
The lecture portions of the class will be derived from the text to understand basic concepts of strategic management. We will have a mid-term exam and a final exam based on the concepts in the text to assess learning of basic concepts.
To go beyond simply memorizing basic concepts, we will also apply analytical skills using case analysis. These cases, provided with your text, include:
1) Costco Wholesale Corporation: MIssion, Business Model, and Strategy
2) Competition in the Bottled Water Industry
3) Blue Nile Inc.: Worlds Largest Online Diamond Retailer
4) Nucor Corporation: Competing Against Low-Cost Steel Imports
5) Spectrum Brands Diversification Strategy: A Success or Failure?
The simulation will help us gain competence in each of the course objectives listed above through comprehension of cause and effect in an artificially compressed time period for an electronic sensor manufacturing firm. Specifically, student teams will compete with other teams on 10 performance metrics:
• Profits
• Margins
• Productivity
• Forecasting
• Market share
• Working capital
• Wealth creation
• Financial structure
• Customer satisfaction
• Avoidance of emergency loans
Additional details will be provided in class.
Grading
Grading is a mix of a tiered grading system and a performance grading system. That is, students choose the grade they want at the beginning of the course and this guides them in which projects to complete (the tiered portion of the grade). However, the performance portion of the grade requires that students achieve certain levels of competence in lower grade activities (grades of C) to become eligible to raise their grade to a higher grade activities (grades of A or B).
PERFORMANCE BONUS: If you are on the highest scoring student team, you are automatically moved one letter grade higher than your final grade. For example, if your team scores highest in cumulative analyst report points (explained in class) and you have completed all other necessary requirements for a B, you would receive a final course grade of A without needing to complete the work in the A category. If you’ve completed course requirements for a C, being on the highest performing team will move you to a B. Please note that this bonus requires that you outperform all other student teams as well as at least one computer team. The bonus is limited to one letter grade; outperforming all student teams and two computer teams, for example, could increase your grade from a C to a B (assuming all necessary C work is satisfactorily completed) or from a B to an A (assuming all necessary C and B work is satisfactorily completed).
Grade of C
• Attend and fully participate in all class sessions.
• Score at 70% on the mid-term and final exam.
• Lead discussion for one team case.
• Lead discussion of one class case (the final case of the course).
• Participate in all cases in which you are not the leader. That is, don’t just listen, but actively challenge the opinions of the team leading the case.
• Score more analyst point in the strategic management simulation than at least one competitor (NOTE: There will be three student teams and three computer teams).
• Team simulation presentation
Grade of B
• Satisfactorily complete all C requirements.
• Turn in your answers to the case base on the CaseTutor® software by the beginning of each case discussion.
• Score higher in the strategic management simulation in terms of analyst points than at least two competitors. (NOTE: There will be three student teams and three computer teams).
Grade of A
• Satisfactorily complete all B and C requirements.
• Complete a concept integration paper.
• Present the case to the class near the end of the course.
Concept Integration Paper
The concept integration paper is a 10-page, single-spaced case comparing three industry competitors by explicitly integrated the concepts from each of the following articles. You can download all of these articles from my website as zip files. Click here to access the articles.
Foundational Principles in Strategic Management (Theme A)
Collis, D.J. & Rukstad, 2008. Can you say what your strategy is? Harvard Business Review, April: 82-90.
Hambrick, D.C. & Fredrickson, J.W. 2005. Are you sure you have a strategy? Academy of Management Executive, 19(4): 51-62.
Porter, M.E. 2008. The five competitive forces that shape strategy. Harvard Business Review, January: 78-93.
Collis, D.J. & Montgomery, C.A. 2008. Competing on resources. Harvard Business Review, July-August: 140-150.
Competing Perspectives of Strategic Management (Theme B)
Mankins, M.C. & Steele, R. 2006. Stop making plans: Start making decisions. Harvard Business Review, January: 76-84.
Bower, J.L & Gilbert, C.G. 2007. How managers' everyday decisions create or destroy your company's strategy. Harvard Business Review, February: 72-79.
Decker, C. & Mellewigt, T. 2007. Thirty years after Michael E. Porter: What do we know about business exit? Academy of Management Perspectives, May: 41-55.
Christensen, C.M., Kaufman, S.P, & Shih, W.C. 2008. Innovation killers: How financial tools destroy your capacity to do new things. Harvard Business Review, January 28: 98-105
Mehri, D. 2006. The darker side of lean: An insider’s perspective on the realities of the Toyota Production System. Academy of Management Perspectives, May: 21-42
Competitive Intelligence (Theme C)
Day, G.S. & Schoemaker, P.J.H. 2005. Scanning the periphery. Harvard Business Review, November: 135-148.
Christensen, C.M., Raynor, M., & Verlinden, M. 2001. Skate to where the money will be. Harvard Business Review, November: 72-81.
Ketchen Jr., D.J., Snow, C.C. & Street, V.L. 2004. Improving firm performance by matching strategic decision-making processes to competitive dynamics. Academy of Management Executive, 18(4): 29-43.
Emerging Views in Strategic Management (Theme D)
Porter, M.E. & Kramer, M.R. 2006. The link between competitive advantage and corporate social responsibility. Harvard Business Review, December: 78-92.
Clayton, C.M.Christensen, Baumann, H., Ruggles, R. & and Sadtler, T.M. 2006. Disruptive innovation for social change. Harvard Business Review, December: 94-101.
Khanna, T. & Palepu, K.G. 2006. Emerging giants: Building world-clsss companies in developing countries. Harvard Business Review, October: 60-69.
Seelos. C. & Mair, J. 2007. Profitable business models and market creation in the context of deep poverty: A strategic view. Academy of Management Perspectives, 21(4): 49-63.
Porter, M. & Siggelkow, N. 2008. Contextuality within activity systems and sustainability of competitive advantage. Academy of Management Perspectives, May: 34-56.
Lash, J. & Wellington, F. 2007. Competitive advantage on a warming planet. Harvard Business Review. March: 92-102.
Grading Safety Net
There is a safety net for those who do not score as high in the simulation as they would like to. You may increase your course grade by one letter grade if you do not score higher than at least one competitor in the strategic management simulation by writing a 5-page, single-spaced, strategic analysis paper. This can raise your grade from a B to a C. To increase your grade to an A, however, you must complete the case assignment described above.
Strategic Analysis Paper
The strategic analysis should analyze one corporation using the following outline:
A) Address all five major components of the Hambrick & Frederickson (2005) paper.
B) Analyze all the major industry forces in the Porter (2008) paper.
C) Complete a resources analysis for each of the three rivals based on the Collis and Montgomery (2008) paper.
D) Conclude with specific recommendations for the corporation’s long-term strategy.
Students scoring less than 70% on the midterm exam may retake the exam once. If they do not score above 70% on the second attempt, they will not be eligible to advance to the B and A level projects. To be eligible for a final course grade of C, these students must pass the final exam on the first and only attempt with at least an 80% to maintain a C in the course. This is in addition to satisfactorily completing all the other C assignments. The final exam may be taken only once.
Absence Safety Net
Much of the learning occurs in class during the discussions and simulation debriefs. There is no way to recreate these experiences; thus, there is no difference between excused and unexcused absences. Instead, an absence is simply an absence regardless of the reason. Please use your own judgment to determine whether or not your specific circumstance warrants missing class and using the alternative assignment explained below.
Each student is allotted only one absence for the course for any reason so please use your allotment wisely. This first absence does not affect your grade. (An absence is defined as missing one day or a substantial portion of a day; i.e., more than one hour). After using this first absence, the second absence requires a written 15-page, single-spaced case due the last day of class--no late work is accepted. Each subsequent absence lowers your final course grade by one letter grade. Both hard copies and electronic copies are required no later than the end of the last class.
To make up a second absence, using the following parameters:
The case topic must one of the following pairs of competitors:
• Fruit of the Loom versus Jockey International
• Tom Bihn versus RedOxx Manufacturing Inc.
• Singapores’ national competitive advantage versus India’s national competitive advantage in the IT market
• The Philippine passenger boat industry versus substitutes such as Philippine air travel
Analyze these competitors using the following outline:
1. Brief introduction & key issues
2. External analysis
• Porter’s 5 forces of industry competition
• Macroenvironmental analysis (PESTEL)
• Each firm’s opportunities and threats
3. Internal Analysis including
• Core competencies
• Value chain synergies
• Strengths and weaknesses
• Sources of competitive advantage
• Determination of sustainability of competitive advantage
4. Financial statement analysis
• What do the firm’s financial statements say about its health? Trends? Comparison to competitors?
5. Business-level positioning strategy of each firm
• What is the overall positioning of the firm is in this particular market?
• How is the positioning strategy supported or not supported by each firm’s functional strategies
• How the positioning strategy influences (or responds to) the competitive and/or cooperative dynamics of the industry. Be sure to include any appropriate quantitative analysis of the advantage this position yields (or fails to yield) over the firm’s competitors.
6. Analysis of the corporate-level strategy of the firm
• Identify the businesses the company is in (or is considering entering), how the businesses are related or unrelated, and whether and how the portfolio of businesses creates additional value. Be specific and detailed. If it is unclear that value is created, try to assess why the firm might have chosen to enter those businesses.
• Identify and analyze the methods of entry the firm has used to enter its chosen businesses. Were the methods of entry used (or proposed) the best choice given the firm’s objectives, environment, strengths, weaknesses, and strategy? Be sure to include any appropriate financial analysis to support your assessment.
7. Recommendations
• Recommendations should respond to the key issues of the case and must be specific and actionable.
• They must not be obvious “so what” platitudes
• They must be consistent with the analysis. You should evaluate the impact of each recommendation on the firm’s environment, strengths, weaknesses, and strategy.
• Include the firm’s financial standing when making recommendations.
Course Schedule
Day 1
Course introduction
Simulation introduction
Lunch
Chapter 1: Strategy and the Quest for Competitive Advantage
Arrange teams
Simulation practice round 1
Simulation practice round 1 debrief
Day 2
Simulation practice round 2
Simulation practice round 2 debrief
Simulation FAQs led by Scott
Lunch
Chapter 2: Leadership and the Strategic Management Process
Simulation practice round 2
Simulation practice round 2 debrief
Homework
Complete rehearsal round
Use CaseTutor® to prepare Costco Wholesale: Mission, Business Model, and Strategy
Day 3
Simulation competition round 1
Simulation competition round 1 debrief
Chapter 3: Competitive Strategy and Advantage in the Marketplace
Lunch
Turn in hard copies of Costco Wholesale: Mission, Business Model, and Strategy
Costco case moderated by the Andrews Team
Simulation competition round 2
Simulation competition round 2 debrief
Homework
Use CaseTutor® to prepare Competition in the Bottled Water Industry
Study for mid-term exam
Day 4
Mid-term exam
Chapter 4: Industry and Competitive Analysis
Lunch
Turn in hard copies of Competition in the Bottled Water Industry
Bottled water industry case lead by the Baldwin Team
Simulation competition round 3
Simulation competition round 3 debrief
Homework
Use CaseTutor® to prepare Blue Nile Inc.: Worlds Largest Online Diamond Retailer
Day 5
Chapter 5: Analyzing a Company’s Competitive Strength and Cost Structure
Simulation competition round 4
Simulation competition round 4 debrief
Lunch
Turn in hard copy of Blue Nile Inc.: Worlds Largest Online Diamond Retailer
Blue Nile case lead by the Chester Team
Simulation competition round 5 (Debrief will take place in the morning)
Homework
Use CaseTutor® to prepare for Nucor Corporation: Competing Against Low-Cost Steel Imports
Day 6
Simulation competition round 5 debrief
Turn in hard copies of Nucor case
Nucor case led by Digby Team
Lunch
Simulation competition round 6
Simulation competition round 6 debrief
Chapter 8: Strategies for Competing in International Markets
Homework
Use CaseTutor® to prepare for Spectrum Brands Diversification Strategy: A Success or Failure?
Day 7
Simulation competition round 7
Announce simulation competition winners
Chapter 9: Strategies for Multibusiness Corporations
Lunch
Turn in hard copies of Nucor case
Class presentation of Spectrum Brands Diversification Strategy: A Success or Failure? (Class members should delegate leadership roles for each case section).
Team simulation presentations: Your team’s planned versus emergent strategy, biggest mistakes, and strategy for the future if there were an additional five simulation decision rounds.
Day 8
Case presentations (by those working toward an A)
Lunch
Final exam