LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT, DELHI TWO-YEAR, FULL-TIME PGDM (General ) Section B&C- TRIMESTER- IV Course Code:

124009 Course Title: Strategic Management- I Facilitator: Prof. Vidhu Shekhar Jha, Ph.D. E-mail: vidhushekharj@gmail.com

Academic Session: 2013-14 COURSE OBJECTIVES: The course on strategic management is designed to enable students: To develop an Understanding of Strategic Inputs by Understanding the Issue of Strategic Management and Competitiveness To help the students understand the External Environment: Opportunities, Threats, Competition, and Competitor Analysis To help students understand the Internal Environment: Resources, Capabilities, Competencies, and Competitive advantages To help students understand the concept of Strategy and Strategic Management Process both at Business and Corporate level Help the Students Understand Formulation of Strategic Actions including BusinessLevel Strategy, Competitive Rivalry and Dynamics, Corporate Level Strategy, Strategic Acquisition and Restructuring and Global Strategy Issues. Help Students Understand How Strategy Formulation integrates with Strategy Implementation.

COURSE CONTENTS:
Module Session Topics and Readings

Overview: The main feature and importance of the course for the students,

the pedagogy to be adopted and guidelines for evaluation, Course Objective, and rules and regulations for the course will be discussed. How to analyze a Strategic Management Case- A Separate Document will be given by the Facilitator. Students are expected to Read the relevant chapter from the Text Book and read the Opening Case and Strategic Focuses in each Chapter for better understanding before they come to the Class. They should read the additional readings for greater learning using the Library Databases. The Students will form 9 Teams from Team #1 to Team-9. Case #1 to Case #9 will be assigned to Team #1 to Team #9. Every Student should come prepared to the class having read the relevant Case, which will be discussed in the Class as per the Course Outline/Design . All Members of the Team should be present in the class for Class Presentation of the Case and Analysis and Discussion on the Case.
Reading:

Kathleen M. Eisenhardt and Donald N. Sull, (January, 2001) Strategy

as Simple Rules, Harvard Business Review (HBR) (January, 2001) Porter, What is Strategy, HBR-1996, November-December

II

Strategic Management and Competitiveness : (Chapter- 1), Text Book -

Hitt, Ireland, Hoskisson and Manikutty (HIHM) Opening Case: Bharti Airtel: Making of a Telecom Leader in India Strategic Focus: 1.1. Air Deccan: Unable to Reach the Cruising Height The Competitive Landscape, The Global Economy, Technology and Technological Changes, The I/O Model of Average Returns, The ResourceBased Model for Above Average Returns, Vision and Mission, Strategic Focus: 1.2. Effective Vision and Mission Statements: Why Firms Need Them! Stakeholders, Classification of Stakeholders, Strategic Leaders- The Work of Effective Strategic Leaders, Predicting Outcomes of Strategic Decisions, The Strategic Management Process.
Readings:
Hitt, Ireland, Hoskisson and Manikuty (HIHM) (2012), Strategic Management, A South Asian Perspective, 9th. Edition, Indian Print- 2012- Chapter-1 (Read the Opening Case and Strategic Focuses given in Chapter-1 of this Text Book David, Fred R. Strategic Management Concepts and Cases Thirteenth Edition, Prentice Hall India, New Delhi, India, (2011)- Chapter-1

3.

Additional Readings : Drucker, Peter (1994) "The Theory of Business", Harvard Business Review, SepOct Porter, M E (1996) "What is Strategy?", Harvard Business Review, Nov-Dec Hamel, Gary (1996) "Strategy as Revolution", Harvard Business Review, Jul-Aug Eisenhardt & Sull (2001) "Strategy as Simple Rules", Harvard Business Review, Jan Mintzberg & Lampel (1999) "Reflecting on the Strategy Process" Sloan Management Review, Spring The External Environment: Opportunities, Threats, Competition, and Competitor Analysis-Chapter-2, Text Book (HIHM) Opening Case: ITC Limited, The General, Industry, and Competitor Environments, External Environmental Analysis: Scanning, Monitoring, Forecasting and Assessing, Strategic Focus: 2.1 Consumers Desire to Receive Additional Value When Purchasing Branded Products Segments of General Environment: The Demographic Segment, The Economic Segment, The Political/Legal Segment, The Socio-cultural Segment, The Global Segment, The Physical Environment Segment Strategic Focus: 2.2 Firms Efforts to Take Care of the Physical Environment Industry Environment Analysis, Porters Five Forces Model, Interpreting Industry Analyses, Strategic Groups, Competitors Analysis, Ethical Considerations Readings: Chapter-2 Text Book( HIHM)

Additional Readings:

4.

Collins & Porras (1996) "Building Your Company's Vision " HBR Sep-Oct Forest David & Fred David (2003) "It is time to redraft your mission statement " Journal of Business Strategy, Jan/Feb Hamel & Prahalad (1989) "Strategic Intent" HBR May-June 1989 Thompson & Strickland, Ch. 2 Case-1: Coca-Cola vs. Pepsi in India: The Battle of the Bottle Continues Case 1, Text Book (HIHM) Page- 395 (TEAM-1)

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The Internal Environment: Resources, Capabilities, Competencies, and Competitive Advantages Refer Chapter-3 Text Book (HIHM) Opening Case: Apple Defies Gravity with Innovative Genius Analyzing the Internal Organization, The Context of Internal Analysis, Creating Value, The Challenge of Analyzing the Internal Organization Strategic Focus: 3.1. GE Builds Management Capabilities and Shares them with Others Resources, Capabilities, Core Competencies: Four Criteria for Sustainable Competitive Advantage Strategic Focus: 3.2 Rynair: The Passionate Cost Cutter that is both loved and hated Value Chain Analysis, Outsourcing, Competencies, Strengths, Weaknesses, and Strategic Decisions Reading: Chapter-3 (Text Book) (HIHM) Additional Reading: M E Porter, (2008) "The Five Competitive Forces That Shape Strategy?" HBR January, pp.79-93 M E Porter, (1985), Chapter 2 M E Porter, (1990) "The Competitive Advantage of Nations" HBR March-April, pp.73-93

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Business Level Strategy: Refer Chapter- 4, Text Book (HIHM) Opening Case: Bajaj Auto Ltd. : Cost Leadership through Volume and MarketLeadership Customers: Their Relationship with Business-Level Strategies, Effectively Managing Relationship with Customers, Reach, Richness, and Affiliation, The Purpose of Business Level Strategy, Types of Business Level Strategies: Cost Leadership Strategy, Differentiation Strategy, Integrated Cost Leadership/Differentiation Strategy Strategic Focus: 4.1. Handling Piracy: The Moser Baer Way Strategic Focus: 4.2: The Park Group of Hotels Reading: Text Book (HIHM)-Chapter-4

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Case Study-2: Arun Ice Cream (IIM- Ahmedabad Case)- Case-2 Text Book (Refer Text Book (HIHM)- (Team-2)

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Competitive Rivalry and Dynamics: Refer Chapter-5 (Text Book) (HIHM) Opening Case: Coca-Cola vs. Pepsi in India A Model of Competitive Rivalry, Competitor Analysis: Market Commonality and Resource Similarity, Drivers of Competitive Action and Responses. Strategic Focus: 5.1: Big, But a Bazaar all the Same. Competitive Rivalry: Strategic and Tactical Actions, Likelihood of Attack, First-Mover Incentives, Organizational Size and Quality Issues, Likely Hood of Response: Actors Reputation, Dependence on the Market, Competitive Dynamics: Slow Cycle Markets and Fast Cycle Markets. Strategic Focus:5.2 Soothing the Soul with Kisses-Candy Kisses That is StandardCycle Market

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Readings: Text Book Chapter-4 (HIHM)

Corporate Level Strategy- Refer Chapter-6 , Text Book (HIHM) Opening Case: Fosters Group Diversification into Wine Business Levels of Diversification: Low Levels of Diversification and Moderate and High Levels of Diversification, Reasons for Diversification, Value-Creating Diversification: Related Constrained and Related Linked Diversification, Operational Relatedness: Sharing Activities, Corporate Relatedness: Sharing of Core Competencies, Market Power Strategic Focus:6.1: Cognizants Diversification Strategy Unrelated Diversification , Strategic Focus: 6.2 Johnson & Johnson Uses both Operational and Corporate Relatedness Efficient Internal Market Allocation, Restructuring Assets, Incentives to Diversify, Value-Reducing Diversification: Managerial Motives to Diversify Readings: Chapter-5, Text Book (HIHM) Additional Readings:
Campbell, Goold & Alexander, (1995) Corporate Strategy: The Quest HBR Mar-Apr Collis & Montgomery, (1998 ) Creating Corporate Advantage HBR May-Jun

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Case-3: Gujarat Co-Operative Milk Marketing Federation Limited (GCMMF) (IIMAhmedabad Case)- Refer Case-3 (Text Book) (HIH)- (Team-3)- Page 421

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Case-4: The Park Calcutta, (IIM-Ahmedabad Case) Case-4 (Text Book) (HIHM)Refer Page-439 (Team-4) Case-5: Kanpur Confectioneries Private Limited (A) and Kanpur Confectionaries Private Limited (B)- Refer Text Book (HIHM): IIMA Case- 461 and 467 (TEAM-5) Strategic Acquisitions and Restructuring: Refer Chapter-7 (Text Book) (HIHM) Opening Case: Merger and Acquisition Activity During a Global Crisis: Global and India The Popularity of Merger and Acquisition Strategies, Mergers Acquisitions and Takeovers: What are the Differences?, Reasons of Acquisition: Increased Market Power, Overcoming Entry Barriers, Strategic Focus:7.1: The Increasing Use of Acquisition Strategies by Chinese and Indian Firms as a Means of Gaining Market Power in a Particular Industry Cost of New Product Development and Increased Speed to Market Strategic Focus: 7.2: Pfizers Proposed Acquisition of Wyeth: Will this Acquisition be Successful? Restructuring

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Lower Risk Compared to Developing New Products, Increased Diversification, Reshaping a Firms Competitive Scope Learning and Developing New Capabilities, Problems in Achieving Acquisition Success: Integration Difficulties, Inadequate Evaluation of Target, Large Extraordinary Debt, Inability to achieve Synergy, Too Much Diversification, Effective Acquisitions, Restructuring and Restructuring Outcomes Readings; Chapter-7, Text Book (HIHM) 14. 15.
Case-7: ITC Limited Bangalore (A) and ITC Bangalore (B)-Refer Text Book (page 495 and page 499): (Team-7) Case-6: Arvind Eye Care System: Giving the Most Precious Gift (IIMA Case): Refer the Text Book (HIHM)- Page-473: (Team-6)

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Case-8: Blockbuster Acquires Movie link- Refer Case Text Book (HIHM) -Page 615: (Team-8)

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Global Strategy: Chapter-8: (Text Book) (HIHM) Opening Case: Entry into India by Foreign Firms and Indian/Chinese Firms Reaching for Global Markets Identifying International Opportunities: Incentives to Use International Strategy, International Strategies: International Business Level Strategies, International Corporate Level Strategies, Strategic Focus: 8.1: Country Conditions Spawn Successful High Tech Firms in

Emerging Markets Environmental Trends, Choice of International Entry Mode: Exporting, Licencing, Strategic Alliance, Acquisitions, New Whole Subsidiary, Dynamics of Entry Mode, Strategic Competitive Outcomes: International Diversification and Returns, International Diversification and Innovation, Complexity of Managing Multinational Firms, Risks in International Environment: Political, Economic Risks, Limits to International Expansion: Management Problems Strategic Focus:8.2 The Continuing Threat to Legitimate Companies from Counterfeit or Fake Products Reading: Chapter-8 Text Book (HIHM)

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Case-9: Cognizant: Preparing for a Global Foot Print- Refer Text BookPage-515 (Team-9)

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Strategic Options, Evaluation and Choice: Generic Strategic alternatives,

Exploring growth strategies

Readings:

Hax & Wilde, (1999 ) The Delta Model SMR Winter Katarina Funk, (2003) Sustainability and Performance SMR Winter Refer Chapter-6, Fred R. David (2011) 13th. Edition, PHI Learning (Class Discussion in the Class on these Issues.) 20 Wrapping up the Course- Strategic Management as a Process and How it Integrates with Strategy Implementation and Evaluation. (Class Discussion)

PEDAGOGY: The course will be a blend of interactive lectures, and discussions, Case analysis Presentation and Discussion and Final Case Report preparation of the students and submission for evaluation and Team Term End Projects on any Company Operating in India on their Strategy Formulation Issue through secondary Research. Students are expected to study the readings and the relevant chapters and the Strategic Focuses given in each chapter for practical understanding, indicated under each topic before coming to the class for better understanding and Learning. The main objective of the course being the application of earlier learning in functional areas, the lectures will be restricted to integration aspects and on concepts relevant to the course. The solutions to theory, case and real life problems in this course are varied. A major objective of this course is to develop analytical and Problem Solving skills in students. For a better understanding of Case Analysis, Discussion and Presentation, students are advised to read How to prepare and Present a Case Analysis in Strategic Management by Fred. R. David (2011). Also Read the PPT given by the Facilitator on How to do a Strategy Case Analysis by Dr. Figa PPT. by the facilitator, adapted from (HIH) or Read How to do a Case Analysis given in

Book Hitt, Ireland and Hoskisson (HIH)- Much Earlier Version of the Book2003. EVALUATION: The course will be evaluated on the following basis: End Term Examination : Internal Assessment: Internal Evaluation: Test/ Take Home Assignments/ Quiz etc. (Exercises from the Text Book Chapters) : 5 marks 50 marks 50 marks

Case Discussions Presentation and Electronic Submissions Report after improvement after class discussion (PPT) : 20 marks Team Term End Project in Word Document : 20 marks Class Participation : 5 marks (This Evaluation Component and Weightage may vary depending on the Facilitator facilitating different Sections for PGDM General- 3 Sections and PGDM-Finance-1 Section) and other Program like the Part-Time PGDMEvening Program
Internal evaluation will be done on a continuous basis and students will be formally briefed from time to time about their progress. Formal evaluation results may however be announced only in the and at the end of the trimester . Students are encouraged to come to the class after going through the chapter to be discussed in the class. They should especially come to the class having read the opening Case of the Chapter and Strategic Focuses given in the chapter for better appreciation and learning. The Course will encourage individual Learning and Team Learning. Case Analysis and Presentation has to be done in Teams and after improvement has to be submitted to the Facilitator electronically in PPT., as given in the Course Outline. The Term End Projects have to be done in Teams. The Guidelines for Team Term End Project will be given in the class. The Team Term End Project has to be submitted to be submitted electronically to the facilitator by the end of the 18th. Class in a Word Document not exceeding by 5,000 words.

Text Book: Hitt, Ireland, Hoskisson and Manikutty, (2012), Strategic Management, A South Asian Perspective, 9th. Edition, Cengage Learning, Indian Edition, Printed in India, 2012. ISBN-13: 978-81-315-1621-8 and ISBN-10:81-315-1621-0 Reference Books: Ireland, Hoskisson and Hitt, (2011), Strategic Management India Edition, Cengage Learning, Seventh Indian Print, Ireland, R D; Hoskisson, R E and Hitt, M A (2008) Strategic Management, Cengage Learning Hitt, Ireland and Hoskisson (HIH), Strategic Management, Concept and Cases (2003) David, Fred R., (2011) Strategic Management & Cases, Thirteenth Edition, Indian Reprint, PHI Learning Private Limited, New Delhi-110001

David, Fred R., (2008) Strategic Management, Concept and Cases, Eastern Economy Edition, PHI Learning, New Delhi. Hill, Charles W.L., Jones, Gareth R. Jones (2010, 2008), Strategic Management- An Integrated Approach, Cengage Learning Thompson, Strickland, Gamble and Jain, (2006), Crafting and Executing Strategy, 14 th. Edition, Tata McGraw Hill, New Delhi. Sumantra Ghoshal et al (eds.) (2002) World Class in India, Penguin Books, New Delhi G Hamel & C K Prahalad (1994) Competing for the Future, Tata McGraw Hill Publishing Co. Ltd. M E Porter (1990) Competitive Advantage of Nations, Free Press Other Journals: California Management Review Sloan Management Review Academy of Management Journal Strategic Management Review Business Horizon Harvard Business Review Mckinsey Quarterly Indian Business Magazines like Business, Today, and Business World etc. Business Newspapers like Economic Times, Business Standard etc. Please make use of Electronic Databases in the Library like EBSCO and others extensively for your Term End Project. The Team Term End Project has to be submitted by the end of class 18, of the course electronically to the Facilitator for Evaluation and Comments.