April 1 No class; campus furlough dayBUSINESS 189 STRATEGIC MANAGEMENT Dr. Mark Fruin BT 665, tel 924-3570 Spring semester 2010 Off hrs: Tues-Thurs 2-3 p.m. [email protected] Section 13 Course prerequisites: All COB core course must be completed and you must have attained graduating senior standing. In addition, Business 100W or a similar writing course is a prerequisite. If you do not satisfy these prerequisites, you will not be allowed to register or, if already registered, complete the course. If you are not registered and trying to add, written evidence of graduating senior status is required. Course description: Business 189 is a challenging, fast-paced, capstone course in strategic management. As a capstone course, it is designed to integrate your under-graduate business education, to help you understand and analyze business activities in various social, economic, and industrial contexts, and to allow you the opportunity to apply strategic management concepts to a wide variety of business situations. Basically, the course teaches you how to think broadly and logically about general management issues and it asks the basic question, “why are some firms more successful than others?” Topics covered in the course include: *Industry and competitive analysis *The resource-based view of the firm and strategy *Generic competitive and cooperative strategies *Flexible manufacturing and organizational process know-how *Diversification and vertical integration *Firm versus network organization strategies *Organizational learning; mobilizing and harnessing knowledge for innovation *How to write up and present company and industry analyses There are two and perhaps three answers to the question of why some firms win in competition with other firms. The first approach looks at competition in industries and argues that better positioned firms in industries outperform their rivals. This point of view is most often associated with Dr. Michael Porter of Harvard Business School and his models of industry competition. The second approach looks inside firms for sources of competitive advantage by paying particular attention to how firms create value through the use of resources and capabilities. This is the so-called resource based view (RBV) of the firm. A third framework looks at issues of corporate governance and how better performing firms learn to balance, integrate, and leverage stakeholder interests for long-term success. I call this the “sustainable good governance” perspective. Course text: Hill, C. W. L., and G. R. Jones, Strategic Management: An Integrated Approach, South-Western, CENGAGE learning, 9th edition, New York: 2010. The text contains descriptive and conceptual materials as well as case studies. We make use of most of the book during the semester; make sure that you have the eighth edition as opposed to earlier versions. In addition to the text, PowerPoint files can be found on myCOB website; they are listed under Bus 189 as well as 290 & 202. Because published cases are always somewhat out of date, updating cases by looking for recent and additional business data and information is advised. Grading: Five data points are collected, including three written in-class exams, one group project, and a class participation grade. Three times a semester, written exams assess how well you have listened, studied, and learned, and how well you can apply the tools, concepts and frameworks introduced during the previous weeks. Exams include short and long essays and case analyses. How well you explain concepts and apply them are just as important as knowing the facts. Each exam and the group project constitute 25% of your final grade, and an additional 10% is based on class attendance and participation. In theory, a perfect score would yield 110 points. 10 points are enough to lower or raise your grade by a letter grade, so class participation is important. Just showing up does not merit points. Schedule of class meetings: We cover a lot of material every meeting and, as a result, you should read and prepare assignments in advance. At least one hour of time outside the classroom should be invested for every hour of time in the classroom. Cases for Bus 189 from Hill & Jones, 9th edition, 2010 Function level strategy *Case 3: The Comeback of Harley Davidson, 1985-2008 **Case 5: Internet Search and the Google Juggernaut Business level strategy *Case 10: McDonald’s and Its Critics: 1973-2009 **Case 11: Nucor IN 2009 **Case 14: Facebook Corporate level strategy **Case 19: Tata Motors’ Acquisition of Jaguar and Land Rover *Case 26: Michael Eisner’s Walt Disney Company *Case 27: The Walt Disney Company 1995-2009 *cases for mid-term exams **cases for classroom discussion These eight cases represent a common body of knowledge for discussion, debate and testing during the semester – one case every two weeks. It would be wise to read them thoroughly, take notes on salient issues, and commit facts to memory. That way you won’t have to search through the textbook looking for the right information during a high stress moment. In addition, we’ll have a common set of cases – a common database - for applying the course concepts during the semester.GENERALLY, CONCEPTS ARE DISCUSSED ON TUESDAY & CASES ON THURSDAY. Jan 26 Introduction to course; clear up enrollment issues; begin with relationships between business models, strategy, and theory of the firm Jan 28 What is strategy; strategy stack; what is a firm; nature of competition; integration of strategies. Feb 2 & 4 Chapter 1, H & J. Different views and outcomes of strategy: Michael Porter, Resource-based View, Strategy as Sustainable Good Governance; management as a system as opposed to management as sets of functions and roles; Powerpoint slides. Feb 9 & 11 Chapter 2 & 3, H & J. GROUP FORMATION & INITIAL TEAM MEETINGS on Thursday. Assemble a team; learn about team strengths & weaknesses; pick a project & develop coordination plans; assign initial tasks & timetable; two ways to approach: division of labor team vs multifunctional teams + integration in either case. QUESTION: In which company would you invest $1 million, given a three year timeframe, or until the end of 2013 calendar year? Besides basic financial analyses, the group project