DRAFT: 9/9/2012

BA 490 BUSINESS STRATEGY FALL 2012

Instructor: Miriam Plavin-Masterman Instructor Office Hours: Mondays/Wednesdays 10-11:30 AM, Tuesdays/Thursdays Contact Information: e-mail: mplavinmasterman@worcester.edu

11:30-noon, and by appointment , Sullivan Room 218

Course Description Course description. This course in business policy focuses on integrative,

multifunctional approaches to the solution of organizational issues and problems. A practical perspective, rather than a merely theoretical one, is stressed via lectures and discussion of case studies. Why use a case-study approach? Three levels of learning take place: 1. We share the generalized insights of leading theoreticians; 2. We test the applicability and limits of these theories to specific case studies; and 3. You develop your own special combination of insights based upon empirical

observations and inductive reasoning (from case analyses). How are cases used in 490?

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As discussion vehicles for probing the benefits and limits of certain approaches; To provide you with opportunities to apply and test concepts and tools related to dimensions of management thought (e.g., marketing, accounting, finance); To help you to understand the nature of better answers, as well as the complexity of reaching solutions and implanting them in organizations.

What do youas a class memberneed to do? First, understand what went on in a What has changed? What are the key questions about the future that need to be answered? What further information is needed to answer those questions? Major emphasis is placed on action and implementation, not just on analysis. Each

case situation:

case features a top management team facing a specific set of issues and problems. So, during the course, you will have an opportunity to see a wide range of organizations in action, and to think about their specific choices and actions as if you were in charge.

This course is a capstone and it calls on you to integrate concepts of all other

prerequisite business courses, i.e., bringing together and applying the learning from core courses to the analysis and solution of strategic management problems. The course is intended to enhance the following skills:

1. Your ability to decipher detail and to analyze information including financial

information -- in order to identify and to diagnose the major problems and opportunities confronting business organizations; Class participation 2. Your ability to take a cross-functional, top management perspective in developing 3. Your ability to decide from among alternative courses of action and to formulate 4. Your ability to present a position and to defend it. feasible overall strategies as well as specific problem solutions; feasible plans for their implementation;

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You should come prepared for class discussion of cases and supplemental readings;

that is, with an outline or bullet point list of your case analysis, stating your perception of the underlying problem, some supportive data, and your recommended plan(s) of action. Bear in mind how difficult it is to assess your participation if you are absent from class! Attendance will be taken. Your class participation grade will be based on:

1) evidence of careful preparation of the cases and readings; 2) clarity and conciseness of your analysis; and 3) strong and convincing presentation of your findings and conclusions. Written case analyses. There will be two short in-class written case analyses plus a

final longer one, due during finals week. You will know which case will be used two weeks ahead of time. Please see the section on written case analyses for more detail.

Case study questions are intended to get you thinking about the issues in the case and

to lead you through the process of analysis. They will be posted on Blackboard.

Course Requirements and Assessment The course has two required texts: Business Policy and Strategy, texts and casebook,

both available at the Bookstore. Students are expected to attend ALL class sessions ON TIME. Frequent absence,

lateness, or leaving class or discussion early (e.g. occurring more than 4 times nearly 10% of the sessions) will be reflected in your final grade. Extenuating circumstances should be discussed in advance with the professor via e-mail. [NOTE: I generally check and respond to emails Monday-Friday during the day. Please do not email me at midnight and expect me to get back to you before our class meeting the next day.] All students are expected to participate fully in cooperative class and team activities. All typed written assignments MUST be typed on neat 8.5 x 11 paper, free of

grammar and spelling errors and composed in 12-pt Times New Roman font with 1-inch margins and double-spacing. I do not accept late assignments; I do not provide make up assignments (again, extenuating circumstances should be discussed in advance).

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Those assignments done in class must be hand written, since they will be turned in to

me at the end of the class period. If you have a learning disability, please come and meet with me. I will make any needed accommodations for students who provide documentation from the Disability Support Services (DSS) office. Performance evaluation Strategic issues seldom have clear-cut or singularly right solutions. This means that

my evaluation of your performance will be based upon your managerial aptitude in problem diagnosis, generation of solutions, and communication of your position. I will be looking for demonstration of logical argumentation and consistency in your thought processes. Grades will be based on your performance in (a) oral discussion and argument (defense) of your ideas and (b) written communication. Your overall performance will be based on points, assigned as follows:

1. Class Attendance 10%-- Your participation will be judged based on your steady
attendance and punctuality in class.

2. Participation 10% I will be evaluating the extent to which you are prepared for class.
Before each week's topic a set of discussion questions will be posted on Blackboard. Use these to prepare for the discussion portion of the class. A former professor of mine once drafted the following list of participation best practices. Although you should certainly feel free to develop your own participation style, these basic guidelines are a good place to start: 1. Consistently make valuable contributions about topics under discussion 2. Stay focused and on-topic, keeping your comments relevant and succinct 3. Respectfully help to clarify points that others may not have understood 4. Bring up good questions about subjects that need further exploration 5. Demonstrate your ability to analyze, apply, and synthesize course material 6. Demonstrate your willingness to take risks (e.g. offer creative speculations, attempt to answer unpopular or difficult questions, be willing to recognize and acknowledge good counterarguments) 7. Be cheerful and good-natured; try to make the discussion interesting and enjoyable for yourself and your classmates

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DRAFT: 9/9/2012 3. 2 Thinkpieces 14% . Thinkpieces should be 2-3 pages in length. They should follow the
general guidelines for written assignments, and they should include a title of some kind. There are no assigned topics for these thinkpieces, except that they all must address the course material. Each thinkpiece should focus on one interesting idea or insight that the course has inspired in you. Thinkpieces may take a wide range of forms, including personal reflections, empirical observations, research ideas, policy proposals, and reactions to theoretical arguments and debates; thinkpieces should not, however, be simple summaries of the readings. These short essays should be neither hard to write nor time-consuming, particularly if you give them some thought in advance. In general, thinkpieces will prove easiest if you write them while insights are fresh in your mind. Do not wait until just before their due dates to see whether an idea is genuinely novel or correct; that is not the goal of these pieces.

4. 2 in-Class Case Reports [14 pts each] 28%. Preparing a written case analysis is like
preparing a case for class discussion, except that your analysis must be more complete and put in report form. I will give you a specific case to use in the two in-class write-ups. You will know which case will be used two weeks ahead of time. Questions will be provided in class for you to address; you will be able to bring in one double-sided sheet of notes on the case for use in the writeup. The expectation is that you will: a. identify all the pertinent issues that management needs to address, given the questions you are answering, b. perform whatever analysis and evaluation is appropriate, and c. propose an action plan and set of recommendations addressing the issues you have identified.

5. 2 Team presentations in-class -- 22%

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DRAFT: 9/9/2012 6. Final case writeup - 16% I will give you a specific case to use for the final case write-up
two weeks ahead of time along with questions you need to address. As with the in class reports, the expectation is that you will: a. (1) identify all the pertinent issues that management needs to address, given the questions you are answering, b. (2) perform whatever analysis and evaluation is appropriate, and c. (3) propose an action plan and set of recommendations addressing the issues you have identified. **Note that this assignment has a 10 page typed limit.** Grading Scale A AB+ B BC+ 94-100 90-93 87-89 83-86 80-82 76-79 C CD+ D DE 72-75 69-71 66-68 62-65 59-61 58 and under

Week 1: September 6th: Introduction: What is Strategy? Why study strategy? Readings: Chapter 1

Week 2: September 11th and 13th: Overview of strategic management process Case study methodology Choosing the right strategy/objective Readings: Chapter 2-The Managerial Process of Crafting Strategy JetBlue Case

Week 3: September 18th and 20th Competitive Assessment Industry Attractiveness/Finances Readings: Chapter 3-Evaluating a Companys External Environment

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Whole Foods Case Team presenting: 1 Thinkpiece #1 due by September 27th Week 4: September 25th and 27th: Five forces model SWOT/group map SWOT Competition/Strategy Finances Readings: Chapter 4 - Evaluating a Companys Resources and Competitive Position Golf Industry Case Team presenting: 2 Case for in-class writeup #1 posted on Blackboard

Week 5: October 2nd and October 4th SWOT/Five Forces Readings: Chapter 5 The 5 Generic Competitive Strategies Alliances, Mergers and Acquisitions HP and Compaq Case read the (A) case for background, prepare the (B) case for discussion Team presenting: 3 Week 6: October 9th and 11th SWOT/Finances/Five forces model Readings: Chapter 7-Competing in Foreign Markets Chapter 6 -- Supplementing the Chosen Competitive Strategy

In-class case writeup #1 October 11th Week 7: October 16th and 18th: Drivers of Change SWOT Readings: Chapter 8-Tailoring Strategy to Fit Specific Industry and Company Situations

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Netflix and Blockbuster Team presenting: 4 Week 8: October 23rd and 25th

Nine cell industry attractiveness Finances/strategy/competitive strength Readings: Chapter 9-Diversification-Strategies for Managing a Group of Businesses Panera Bread case Team presenting: 5 Week 9: October 30th and November 1st: Readings: Chapter 11-Building an Organization Capable of Good Strategy Execution Adidas Case Team presenting: 1 Thinkpiece #2 due at the beginning of class October 30th Case for in-class writeup #2 posted on Blackboard Week 10: November 6h and 8th Readings: Chapter 10-Strategy, Ethics, and Social Responsibility Dilemma at Devils Den Team presenting: 2 Week 11: November 13th and 15th: Readings: Chapter 12-Managing Internal Operations In-Class Case writeup November 15th Week 11: November 20th. No class Thursday November 22nd : Readings: Harley-Davidson, 2004 Team presenting: 3 Week 12: November 27th and 29th: Readings: Readings: Chapter 13-Corporate Culture and Leadership eBay Case

Team presenting: 4

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Final Case Analysis #3 Assigned This Week: Due DECEMBER 17th Week 13: December 4th and 6th: Readings: Retail Strategies at Philadelphia International Airport: in-class December 4th Team presenting: 5 Wrap-up

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Written Case Analysis for Final Paper: Identification It is essential that you provide a sharply focused diagnosis of strategic issues and key problems and that you demonstrate a good grasp of the company's present situation. Make sure you can identify the firm's strategy (use the concepts and tools as diagnostic aids) and that you can pinpoint whatever strategy implementation issues may exist (consult the material in the text for diagnostic help). Make sure you include an overview of the company's situation, its strategy, and the significant problems and issues that confront management. State problems/issues as clearly and precisely as you can. Unless it is necessary to do so for emphasis, avoid recounting facts and history about the company (assume I have read the case and am familiar with the organization). Analysis and Evaluation This is usually the hardest part. Analysis is hard work! If there are numbers, run them! Check out the firm's financial ratios, its profit margins and rates of return, and its capital structure, and decide how strong the firm is financially. The reference guide has various financial ratios and how they are calculated. Use it to assist in your financial diagnosis. Similarly, look at marketing, production, managerial competence, and other factors underlying the organization's strategic successes and failures. Decide whether the firm has valuable resource strengths and competencies and, if so, whether it is capitalizing on them. Check to see if the firm's strategy is producing satisfactory results and determine the reasons why or why not. Probe the nature and strength of the competitive forces confronting the company. Decide whether and why the firm's competitive position is getting stronger or weaker. Use the tools and concepts you have learned about to perform whatever analysis and evaluation is appropriate. In writing your analysis and evaluation, bear in mind four things: a. You have to offer analysis and evidence to back up your conclusions. Do not rely on unsupported opinions, broad over-generalizations, and generic statements (i.e. the firm is facing a difficult challenge) as a substitute for tight, logical arguments backed up with facts and figures. b. If your analysis involves some important quantitative calculations, present the calculations as clearly and efficiently as possible. Don't just tack the exhibits on at the end and let me figure out what they mean and why they were included. Instead cite

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some of the key numbers, highlight the conclusions to be drawn from the exhibits, and refer me to any exhibits for more details. c. Demonstrate that you have command of the strategic concepts and analytical tools to which you have been exposed. Use them in your report. d. Your interpretation of the evidence should be reasonable and objective. Be wary of preparing a one-sided argument that omits all aspects not favorable to your conclusions. Also try not to exaggerate or overdramatize. Do not use phrases such as "I think," "I feel," and "I believe" ; instead use "My analysis shows," or the data illustrates. Recommendations The final section of the written case analysis should consist of a set of definite recommendations and a plan of action. Your set of recommendations should address all of the problems/issues you identified and analyzed. If the recommendations come as a surprise or do not follow logically from the analysis, this greatly weakens your suggestions of what to do. Obviously, your recommendations for actions should offer a reasonable prospect of success. High-risk, bet-the-company recommendations should be made with caution. State how your recommendations will solve the problems you identified. Be sure the company is financially able to carry out what you recommend; also check to see if your recommendations are workable in terms of acceptance by the people involved, the organization's ability to implement them, and prevailing market and environmental constraints. Try not to hedge or weasel on the actions you believe should be taken.

State your recommendations in enough detail to be meaningful. Avoid such unhelpful statements as "the organization should do more planning" or "the company should be more aggressive in marketing its product; state exactly how you think this should be done. Offer a definite agenda for action.

In proposing an action plan, remember there is a lot of difference between, on the one hand, being responsible for a decision that may be costly if it turns out to be wrong and, on the other hand, casually suggesting courses of action that might be taken when you do not have to bear the responsibility for any of the consequences. A good rule to follow in making your recommendations is: Avoid recommending anything you would NOT be willing to do if you were in management's shoes. The importance of learning to develop good judgment in a managerial situation is

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indicated by the fact that, even though the same information and operating data may be available to every manager or executive in an organization, the quality of the judgments about what the information means and which actions need to be taken does vary from person to person. (Gragg, "Because Wisdom Can't Be Told," p. 10). It goes without saying that your report should be well organized and well written. Great ideas amount to little unless others can be convinced of their merit -- this takes tight logic, the presentation of convincing evidence, and persuasively written arguments.

The Use of PowerPoint & Format For In-Class Case Study Presentations (with thanks to Gus Luparelli) 1. The Marquee slide: The name of the case study with names of presenters in speaking order. 2. The Committee slide: What did the committee do/responsibilities? i. Who did what questions? Who did the financial analysis? ii. Who did PPT? Who pulled PPT together? 3. Overview of the case study slides: What is the case about? Tell us about it. About the company, the situation, the industry, the problem. INCLUDE A LOGO ON ALL SLIDES. 5 to 15 slides

4. Case study questions: There are 10 to 16 questions (or more) for each case with
multiple sub-questions. There can be 1 to 3 slides per question. ANSWER ALL OF THEM !!

5. Relationship to text slide: Very Important !! Make sure that you make the
connection between the case and chapter/chapters in the text.

6. Financials slides: Very Important !! Each case should have a financial presentation
based on the data in the case. Utilize the sales and income figures presented in the text. Make sure you review and understand financial ratios. 3 to 8 slides. 7. Stock Prices/performance slides: If publicly traded, show a 5 year and/or a 10 year performance chart. Answer the question: Based on this presentation, would I buy the stock? Why? Why not? 3 to 5 slides.

8. Class hand-outs: All cases have class handouts. One per student. They will be in 6-up
PPT format per page. Use of the Business Administration copier is restricted for professors use. No last minute copying. Please plan ahead !! 9. **Email address: share your email with your committee members. It is imperative that

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you meet regularly to discuss your case and to formulate strategy and presentation format. 10. **Observe the PPT rules of 6- six lines. Limit graphics to meaningful supportive icons. The use of a companys logo is mandatory. Creativity and appropriate graphics recommended. Use dark lettering (font) with a light background, or a dark background with light lettering (font). 7. 8.

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