MgtS
4481 – Strategic Management
Course
Syllabus
Fall
2005
|
Instructor: |
Geoffrey
G. Bell, Ph.D., CA |
Office
hours: |
|
Office: |
SBE
121 |
Th |
|
Phone: |
726-7640 |
Or by appointment |
|
email: |
ggbell@d.umn.edu |
fax: 218-726-7578 |
Meeting time: Section 4:
Texts (required): Dess, G.D., Lumpkin, G.T., and Eisner, A.B (2006). Strategic Management: text & cases,
second edition, McGraw-Hill Irwin,
How to Use Financial Statements: A guide to
understanding the numbers, Bandler,
Articles (required):
Aiello, Robert J. and Michael
D. Watkins (2000). “The
fine art of friendly acquisition,” Harvard Business Review, November-December
2000:101-107.
Almeida, Paul, Jaeyong Song, and Robert M. Grant (2002). “Are
firms superior to alliances and markets?
An empirical test of cross-border knowledge building,” Organization
Science, 13(2):147-161.
Barkema, Harry G. and Freek Vermeulen (1998). “International
expansion through start-up or acquisition: A learning perspective,”
Barney, Jay B. (1991).
“Firm
resources and sustainable competitive advantage,” Journal of Management,
17(1):99-120.
Bower, Joseph L. (2001).
“Not
all M&As are alike – and that matters,” Harvard Business Review,
March 2001:93-101.
Campbell, Andrew, Michael
Goold, and Marcus Alexander (1995). “Corporate
strategy: the quest for parenting advantage,” Harvard Business Review,
March-April 1995:120-132.
Collins, James C. and Jerry
I. Porras (1995), “Building
a visionary company,” California Management Review, Winter 1995:80-.
Collis, David J. and Cynthia
A. Montgomery (1995). “Competing
on resources: Strategy in the 1990s,” Harvard Business Review,
July-August 1995:118-128.
Collis, David J. and Cynthia
A. Montgomery (1998). “Creating
corporate advantage,” Harvard Business Review, May-June 1998:71-83.
Drucker, Peter F. (2004). “What
makes an effective executive?”, Harvard Business Review, June 2004:58-63.
Gosling, Jonathan and Henry
Mintzberg (2003). “The
five minds of a manager,” Harvard Business Review, November 2003:54-63.
Hambrick, Donald C. and James W.
Fredrickson (2001), “Are
you sure you have a strategy?”
Harding, David and Sam
Rovit (2004). “Building
deals on bedrock,” Harvard Business Review, September 2004:121-128.
Harzing, Anne-Wil (2000). “An
empirical analysis and extension of the Bartlett and Ghoshal
typology of multinational companies,” Journal of International Business
Studies, 31(1):101-120.
Kaplan, Robert S. and David
P. Norton (1992). “The
balanced scorecard: Measures that drive performance,” Harvard Business
Review, January-February 1992:71-79.
Lorange, Peter, and Johan Roos (1991a). “Analytical
steps in the formation of strategic alliances,” Journal of Organizational
Change, 4(1):60.72.
Lorange, Peter, and Johan Roos (1991b). “Why
some strategic alliances succeed and others fail,” The Journal of Business
Strategy, January/February 1991:25-30.
Miller, A. and G. G. Dess (1993). “Assessing
Porter’s (1980) model in terms of its generalizability, accuracy, and simplicity,”
Journal of Management Studies, 30(4):553-585.
Mintzberg, Henry (1987). “Crafting
strategy,” Harvard Business Review, July-August 1987:66-75.
Mintzberg, Henry (1987). “The
strategy concept I: Five Ps for strategy,” California Management Review,
Fall 1987:11-24.
Porter, Michael (1987).
“From
competitive advantage to corporate strategy,” Harvard Business Review,
May-June 1987:43-59.
Salter, Malcolm S. and
Wolf A. Weinhold (1978). “Diversification
via acquisition: creating value,” Harvard Business Review, July-
August 1978:166-176.
Tallman, Stephen and Karin
Fladmoe-Lindquist (2002). “Internationalization,
globalization and capability-based strategy,” California Management
Review, 45(1):116-135
These
articles will be available either in the UMD library or on-line, through
library-accessed databases. They will
also be posted to my web-site, in a protected section of the web-site, which
you can access using your UMD account. I
expect students will access and read the articles prior to class.
Course Overview:
Strategic management considers the
overall direction of an enterprise. Such
direction involves examination of the firm’s external environment, choice of
firm strategic intent and strategy, development of firm resources and
capabilities to attain its objectives, and selection of organization structures
and management style to carry out the strategy.
In this course, you will learn principles and techniques to assist you
understanding and analyzing strategic problems and will practice applying these
principles and techniques to real-life situations through case analysis.
Objectives:
1.
To
understand what strategy is and why it matters.
2.
To
understand the concepts and models underlying the field of strategic
management.
3.
To
analyze complex management situations from a strategist’s perspective,
primarily using the tool of case analysis.
4.
To
be able to evaluate the effectiveness of the firm’s strategy, including a
detailed assessment of the financial condition of an enterprise.
5.
To
understand how to analyze an industry and evaluate the strategy of firms
competing in the industry, and to present your findings to your colleagues.
6.
To
gain exposure to a broad variety of industries in a global context.[1]
Prerequisites: SP-3401, 3701 FMIS 3301, 3601
If
you do not meet the prerequisites, you are not eligible to enroll in the
course.
My Philosophy of
Teaching:
Learning should be an enjoyable
experience for both the students and the instructor. The learning process is greatly facilitated
by active involvement of both the students and the instructor. I expect you to help me create a positive
learning atmosphere by coming to class ready to participate in the discussion.
Additionally, for a positive
learning environment to exist, an atmosphere of acceptance is vital. We should all try to keep an open, but
questioning, mind about ideas which our peers present in the class. Before we criticize what appears to be a
“silly” idea, we must remember that the person who “invented” the hula hoop got
rich! However, before we accept others’
ideas uncritically, we need to remember that Thomas Watson, Senior, founder of
IBM, expected that the total worldwide
market for computers would never exceed five (that’s right, five – not five billion, but five), machines!
Course Format:
The course will consist of a series
of lectures (with discussion) and case analyses. The course will be more interesting (and, I
trust, more informative), if you intersperse the lectures with comments,
discussion, and questions.
Preparation:
How valuable you find this course
depends greatly on how well prepared you are for the day’s events. The better prepared you are, the more you
will get out of this course. Therefore,
I expect all students to come to class prepared to participate in the day’s
activities. I expect you to read the
assigned readings (text material, supplementary readings, overheads, and case) before you come to class. I especially expect you to prepare each case
thoroughly[2],[3]. Because I may call upon you to start the
discussion on any day, I recommend that tell me in advance if you have been
unable to prepare adequately for the discussion. However, regardless of your level of
preparation, I urge you attend all class sessions.
Attendance:
Since constructive contribution to
class discussion is an integral part of this course, attendance at classes is
mandatory. I will circulate an
attendance sheet at the start of each class.
Students are allowed to miss two classes “for free.” Students who miss three or four class periods
will be able to receive a class participation grade of no more than 15 (out of
20). Students who miss five or six class
periods will receive a maximum class participation grade of 10 (out of
20). Students who miss more than six
class periods will automatically receive a class participation grade of zero.[4] This policy includes absences for “excused”
reasons such as religious observances, personal emergencies, etc. Therefore, I highly recommend that any
student who anticipates missing class for “excused” reasons to minimize their
“non-excused” absences. If you
unexpectedly encounter a period of prolonged absence arising from a medical or
family emergency, you need to contact me as soon as possible to assess the
advisability of you continuing with the class.
Course Requirements and
Evaluation:
You will have a variety of
opportunities to show me your knowledge and learning. Tests and exams allow you to display your
understanding of the important concepts and techniques of strategic management
(as covered in the text and supplemental readings). Case discussion in class allows you to
develop your analytic skills and your ability to “think on your feet”. Formal case analyses allow you to demonstrate
your analytic skills, both orally and in writing.
Grading guide:
|
Course Element: |
Percent
of course grade |
|
Class
participation |
At least 10%; Up to 20%5 |
|
Pop
quizzes |
Up to 10%[5] |
|
Tests
- 2 @ 10 points each |
20% |
|
Case
analyses |
25% |
|
Group
project |
20% |
|
Final
exam |
15% |
|
Group
proposal |
0 or -5% |
|
Student
survey |
0 or -5% |
|
Total |
100% |
A. Class participation
Why do I evaluate class
participation? Some students are under
the misperception that class participation consists primarily of “showing
up.” However, class is like work in that
few organizations will pay you merely to “show up.” To receive the rewards you want (pay, in the
case of a work organization; grades in the case of class), you are expected to
add value to your organization.
Increasingly, organizations are demanding pay for performance. Similarly, I do not reward students for
merely showing up. Much of the value add
in the class comes (believe it or not!) from the perspectives that you as
students bring to the discussion. When
we discuss a case or a theoretical concept, you may bring a work perspective
(having worked in a similar organization), or a unique cultural perspective
(especially for you non-Minnesotans!), or some detailed analysis reflecting
your chosen major. Thus, class
participation really includes active contribution to your and your colleagues’
learning.
Sometimes, students also want
permission to do extra work to “make up” a lack of active participation. I do not allow this. Why not?
This perspective really presumes that the primary reason I want you to
participate in class discussion is so I can evaluate whether or not you’ve read
the assigned material. However,
ascertaining whether you’ve done so is really only a minor part of the
exercise, though admittedly, it is a
by-product. My primary goal of asking you to participate actively in class
discussion is my recognition that we all
must contribute to the learning process.
Learning is a joint product of teacher and student wrestling with
material, such that we all (including me) learn something valuable. As mentioned above, we all bring our unique
backgrounds and perspectives, and thus we all have something valuable to
contribute to the class learning experience.
Having you share your thoughts with me one-on-one would allow me to
estimate your comprehension of course material, but would rob your colleagues
of the opportunity to learn from your experience and perspective, so does not
meet the objectives of class participation.
I will assign participation grades
based on the quality of your participation, not just the quantity. Indeed, simply monopolizing “air time”
without adding to the learning of the group will not garner credit and may even
detract from it. Some of the criteria I
will use to evaluate participation quality include:
·
Are
your points relevant to the discussion?
·
Do
you go beyond a mere recitation of case facts?
·
Are
your implications clearly drawn?
·
Do
you present your arguments logically and coherently?
·
Have
you considered relevant counter-arguments, or do they “take you by surprise”?
·
Do
you enhance the class’s understanding of the issues?
To help me evaluate class
participation fairly, please choose and stay in the same seat throughout the
semester. That way, the probability of
erroneous participation credit will be minimized.
B. Pop quizzes
As I mentioned above, I expect
students to come to class fully prepared, especially for case analysis. In the event that I come to believe a
significant proportion of students are not preparing adequately and fully for
the cases, I will begin to use pop quizzes randomly on case discussion days to
assess students’ preparation for the case analysis. Each pop quiz will substitute for 2
percentage points of class participation, to a maximum of 10 percentage
points. (That is, I reserve the right to
use up to 5 pop quizzes throughout the semester on case discussion days.) The pop quizzes will cover substantive content
for the cases, including financial analysis, such as ratio analysis. Any students who are absent the day of a pop
quiz will be awarded a score of zero for that quiz.[6]
C. Tests
Students will write two tests, each
lasting the first hour of the class period.
The first test will occur on October 6th, and will cover
material we discuss in class from September 8th – 29th,
and the second (on December 1st) will examine the material we
discuss from October 6th – November 17th. The questions on the tests will be based on
material covered in my lecture notes and the related text and articles. All tests will be multiple-choice, true or
false, or short answer (single paragraph answer) format. Questions will seek to determine whether you
have both read and understood the course material, and
whether you can apply it to a variety of current business events and settings.
Students will complete one case analysis
(5 pages double-spaced, 12-point font, maximum, plus appendices
[7]
). The case is designed to assess your understanding
of and ability to apply course material to a business setting.
The first portion of the case analysis requires students to examine
industry conditions, and the second requires students to examine the strategy
and sources of competitive advantage for the firm under consideration.
Because we will discuss the case in class the day the assignment is
due, I will not accept late assignments. This
semester, the case assigned is #18: “Green Mountain Coffee Roasters.” The written assignment is due Thursday,
October 27th at the start of class.
Group work is an integral and vital
part of this course. While group work is
often seen as burdensome, it mirrors much management work. Only in rare cases will business graduates
not have to work in group settings in their careers. Group work provides students with the
opportunity to hone their interpersonal skills that serve them well throughout
their careers.
Students will form into groups (3-5
students per group) and prepare a major written paper. Each group will choose an industry to
examine. The industry can be local,
regional, national, or global in the scope of its rivalry. Once you have selected an industry, please
let me know, because I will not allow more than one group to examine the same
industry. (I will assign industries to
groups on a first come, first served basis.)
Additionally, you will choose two firms within that industry to study
their specific strategies. Again, I
recommend that you discuss your choice with me, because I may be able to help
you select firms whose strategies differ markedly, increasing the interest of
your study. Once you have chosen your
industry and firms, you must prepare a one-page proposal outlining the industry
and firms you wish to study. This
proposal is due not later than Thursday, November 10th. Groups that fail to submit their proposal by
this date will receive a 5 percentage point penalty.
You will analyze the industry
conditions using the tools we study in class (essentially, chapter 2 of D&L
and our discussion on industry and competitor analysis). Additionally, you will examine the strategy
followed by the two firms you choose (essentially, chapters 3 and 5 of
D&L), and their core competencies and distinctive competencies using the
tools we develop in class, and assess how well those strategies appear to be
working.
Reports should be approximately 15
pages long, double-spaced, plus exhibits.
They will be due the last day of class (December 17th).
I will give students the opportunity to evaluate
their group peers. In this evaluation,
each student will be asked to assess the performance of themselves and their
peers on a zero-sum basis. I will use
student evaluations to modify individual student scores for the group work
section. Each student will be asked to
indicate whether each group member’s score should remain unchanged, increase by
up to 20% of the possible group work grade, or decrease by up to 20% of the
possible group work grade, with the control that overall grades for each group
must net to zero (e.g., if Student A suggests that Student B deserves +10% of
the possible grade, then another student – or group of students – in the group
must receive -10% of the possible grade).
E. Final
exam
Students will be required to write a
final exam at the time scheduled in the Fall 2005 class schedule. The format will basically follow that of the
mid-term tests (T/F, multiple choice, short answer), and will cover the entire
course, with an emphasis (at least 30%) on material covered after Test #2[8]. The final exam will last two hours. During the first hour, students will write
the exam individually, and their score on the exam will count for 15% of the
course grade. During the second hour, students
will rewrite the same exam in their
groups. I will give each member of the
group 1 bonus point if the group score on the final exam is 85-89%, 2 bonus
points for a score of 90-94%, and 3 bonus points for a score of 95-100%. (Note that these bonus points are actual
course points, so scoring 3 bonus points could conceivably raise your grade one
level (e.g., from B to B+, from C+ to B-, etc.).
F. Student survey
The student survey is very
important. I use it to “meet” you as an
individual, to help tailor my lectures to the needs of the class, and to help
me “put a face and a name together,” which is very important for grading class
participation. Therefore, I request that
all students complete and return the survey (along with a recent photo) no later
than Thursday, September 15th.
Students who fail to do so will be docked 5 percentage points.
G. Incomplete grades
Incomplete grades will be given only
in cases of extreme hardship (such as the death of an immediate family member),
and only after you have discussed the matter with me. Documentation of the hardship will be
required.
The written case analyses are due at
the start of class on Thursday, October 20th. I will consider any paper not in my hands at
the start of class on that date to be late.
I do not accept papers by email.
I will not accept late papers.
Your ability to write cogently and
coherently influences your career success.
Few managers can succeed in business today without strong writing
skills. Therefore, I expect that your
written assignments will, at a minimum, be grammatically correct and free of
spelling errors. I reserve the right to
evaluate your spelling and grammar when grading your work, and to dock papers
up to one full letter grade for poor grammar.
If you are concerned that your
written work is “not up to par,” I recommend that you contact the Tutoring
Center (40 SCC, 726-6248) for assistance.
Students may be excused from taking
a test or exam or handing in an assignment on the date specified only because
of severe personal circumstances (e.g. death of an immediate family member,
hospitalization) or religious reasons.
Please note that while I recognize that you “have a life” outside this
class, I also realize that you & I are committing to be here during class
times. Therefore, I will not excuse you
from attending quiz, exam, or assignment classes for other scheduled activities
such as job interviews. Please do not schedule such activities during
“important” class periods such as tests.
If you do, I will assume that you are also choosing to accept a grade of
“0” on the course element scheduled for that day. If an unscheduled emergency renders you
unable to take the test or exam or hand in your assignment, please let me know
in advance, or immediately upon your return.
Students who do not have an adequate reason for missing a quiz or an
assignment will be awarded a grade of zero.
Students who miss the final exam without permission will receive a
failing grade for the course. If you
have any questions, please see me.
Students
with disabilities:
“It is University policy to provide,
on a flexible and individualized basis, reasonable accommodations to students
who have disabilities that may affect their ability to participate in course
activities or to meet course requirements.
Students with disabilities are encouraged to contact their instructors
early in the semester to discuss their individual needs for
accommodations.” If you feel you need
formal special accommodation to meet your needs, it is your duty to contact Disability Services and Resources to arrange
for this. If you take your tests through
Disability Services and Resources, I highly
recommend that you remind me shortly (one class period) before the test and
final that I need to take a copy to Disability Services and Resources.
I expect that students will act with
the highest levels of academic integrity at all times. Generally, that means that I expect that you
will not cheat on assignments, either by copying other students’ work or by
plagiarizing from other sources. Please
remember that plagiarism is a serious academic violation. An academic’s stock (much like an author’s)
is in ideas, so you should not use other people’s work without properly citing
it. This extends to your fellow
class-mates as well. If (as will inevitably
happen) one of your peers says something brilliant you wish you had thought of,
you can use their ideas, but only if
you cite them as the original source. I
highly commend to you two relevant documents.
The Department of Management Studies has recently adopted official
policies on academic integrity and term papers.
You can find them at http://www.d.umn.edu/sbe/departments/mgmtstudies/policy1.php
and I highly recommend that you read them before you turn in your papers to me.
The
above syllabus and accompanying course schedule are subject to change in the
event of extenuating circumstances.
Tentative Class Schedule
|
Date |
Activity |
|
Week
1: Thursday,
September 8 |
Introduction and review
syllabus; Introductions Perspectives on
strategy Readings: Text: None Articles: Mintzberg, “Crafting Strategy” Mintzberg, “The Strategy
Concept I: Five Ps for strategy” How to do case
analyses Text, chapter 14: “Analyzing Strategic
Management Cases” |
|
Week
2: Thursday,
September 15 |
A Model of Strategy; Readings: Text: D&L chapter
1 Articles: Hambrick & Fredrickson,
“Are you sure you have a strategy?” Vision and strategic
intent Readings: Text: D&L chapter
1 Articles: Collins & Porras,
“Building your company’s vision” Case
#30, “Pixar” |
|
Week
3: Thursday,
September 22 |
External analysis Readings: Text: D&L chapter
2 Articles: None Case
#44: “Yum! Brands, Inc. and KFC” |
|
Week
4: Thursday,
September 29 |
Internal analysis (1):
The Value Chain Readings: Text: D&L chapter
3:68-81 Articles: None Internal analysis (2):
The RBV Readings: Text: D&L chapter
3:81-96 Articles: Barney, “Firm
resources and sustainable competitive advantage” Collis &
Montgomery, “Competing on resources: strategy in the 1990s” Case
#1: “Adolf Coors” |
|
Week
5: Thursday,
October 6 |
Test #1 Generic Competitive
Strategies Text: D&L chapter
5 Articles: Miller & Dess, “Assessing Porter’s (1980) model in terms of its generalizability,
accuracy, and simplicity” Case:
None |
|
Week
6: Thursday,
October 13 |
Evaluating
performance: Text: none Articles: Kaplan & Norton,
“The Balanced Scorecard: Measures that drive performance” Case:
#27: “Nokia” |
|
Week
7: Thursday,
October 20 |
Corporate strategy 1:
an introduction to diversification Readings: Text: D&L, Chapter 6 Case:
#23: "Johnson
& Johnson” |
|
Week
8: Thursday,
October 27 |
Hand-in case due Case #18: “Green Mountain
Coffee Roasters” |
|
Week
9: Thursday,
November 3 |
Corporate strategy 2:
Diversification strategies (continued) Readings: Text:
None Articles: Porter, “From
competitive advantage to corporate strategy” Collis &
Montgomery, “Creating corporate advantage” Campbell, Goold & Alexander, “Corporate strategy: the quest for
parenting advantage” Case:
#34: “Schoolhouse Lane Estates Winery” |
|
Week
10: Thursday,
November 10 |
|
|
Week
11: Thursday,
November 17 |
Readings: Text: none Articles: Salter & Weinhold, “Diversification via acquisition: creating value” Harding & Rovit, “Building deals on bedrock” Bower, “Not all M&As
are alike – and that matters” Aiello & Watkins,
“The fine art of friendly acquisition” Case: #8: “Challenges at Breckenridge Breweries” |
|
Week
12: Thursday,
November 24 |
Thanksgiving Day |
|
Week
13: Thursday,
December 1 |
Test #2 Corporate strategy 4:
strategic alliances Readings: Text: none Articles: Lorange & Roos, “Why some strategic alliances succeed and others fail.” Lorange & Roos, “Analytical steps in the formation of strategic alliances” |
|
Week
14: Thursday,
December 8 |
International strategy
I: Moving toward global business Readings: Text: D&L, Chapter 7 Articles: Case: #38: "Starbucks" |
|
Week
15: Thursday,
December 15 |
International strategy II: MNC – Subsidiary relationships Readings: Text: None Articles: Tallman & Fladmoe-Lindquist, “Internationalization, Globalization,
and Capability-Based Strategy” Harzing, “An empirical analysis
and extension of the Bartlett and Ghoshal
typology of multinational companies” Barkema & Vermeulen, “International expansion through start-up or
acquisition: A learning perspective” Ameida, Song & Grant, “Are
firms superior to alliances and markets? An empirical test of cross-border
knowledge building” Case: #28: “Outback Steakhouse
Goes International” |
|
Wednesday, December 21, 6:00 – 8:00 PM (NOT our regular class period!!!!!) |
Final exam |
Key: D&L = Dess
& Lumkin, Strategic Management
All cases are in Thompson &
Strickland, Cases in Strategic Management, 12th Edition
Have
a GREAT semester!
This page
intentionally left blank
MgtS 4481 Student Survey
Fall 2005
I use this
information to get to know you a little better.
I will keep the information on this page strictly confidential. We will use the information on the reverse
side of this page for class discussion.
Your name: __________________
Your major: __________________ Attach your photo here
When do you
expect to graduate?:
__________________
Please think
about your career aspirations. What do
you expect to be doing after you graduate?
Feel free to dream a little – I won’t share this information with
others! What do you plan to do…
One year after
graduation?
Five years after
graduation?
Ten years after
graduation?
1. What does the
term “strategy” mean to you? Give a
short definition of this term.
2. Why are you taking this course? (It was available, I like your teaching style,
I need it for my major, etc.)
3. What do you hope to learn in this
course? What are your goals?
4. What fears & worries do you have about
this course?
5. What rumors have you heard about the course?
[1]
In
[2] In my mind, “thoroughly” means 3-4 hours preparation for each case. I expect that you will have read the case at least twice (once skimming to get a general sense of the situation, and once in detail), have prepared extensive discussion notes, using the case questions as a basis, and generated an extensive set of financial analysis. Additionally, I expect you will have read through the text and supplementary articles at least once.
[3] As I discuss below, I reserve to replace the case discussion any day with a “pop quiz” covering that day’s case.
[4] Note that this grade for class participation includes the combined total grade for participation and pop quizzes.
[5] As discussed below, each pop quiz will substitute for 2 percentage points of class participation. Therefore, the combined total percent of the course grade allocated to participation and pop quizzes will equal 20% of the course grade.
[6] The only exception will be for students who provide written proof that they have a valid reason (medical emergency; death of an immediate family member) for the absence. I do not consider job interviews to be a “valid reason” for absence.
[7] Most students who do a decent job on this assignment find that they devote at least 15-20 pages to appendices, so it is quite common for the page length of this assignment to total 20-25 pages.
[8] Historically, all of the questions on the final exam have been drawn from material covered after test #2.
