Social and Political Environment of Business

(BA 4305-002)
Instructor: Lı́via Markóczy
Office: 4.206
Phone: 972-883-4828
e-mail: livia.markoczy@utdallas.edu
Office hours: By appointment
Course Web-site is on WebCT

Fall, 2005

Course description
The Social and Political Environment of Business course is a capstone course
aiming to integrate what you have learned in other classes, including finance,
accounting, operations, MIS, marketing, and organizational behavior and use
this knowledge to study the strategic management of the firm as well as the
responsibilities of a general manager.
The approach of the class is practical and problem oriented. The major part
of the course will involve applying concepts, analytic frameworks, and intu-
ition to the strategic issues that real-world companies face. These issues are
presented in case studies and in the form of a several round simulations exer-
cise. For the class to work well – and for you to benefit from it – attendance
and preparation for each class meeting is essential.

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Social and Political Environment of Business BS4305–002

Course Requirements
This course requires extensive readings, active discussions, and diligent at-
tention to the exercises. Each student will be expected to spend an average
of 4 hours a week on this course in addition to class time. This is partic-
ularly true during the first weeks of the class. If a student cannot commit
this amount of time and effort on this course, he or she must realize that it
may be very difficult to earn a good grade. Failure to fully prepare for class
is also a detriment to one’s fellow students. It is the student’s responsibility
to thoroughly read the syllabus, fully understand all the requirements, and
keep track of all the important dates in order to be succeed.

Assessment
Grade will be determined as follows:
Individual exams 40%
Individual written assignments 30%
Group simulation 20%
Class participation 10%

See details of grading an evaluations in the appendicies.

Texts
The required texts of the course are

• John A. Pearce and Richard B. Robinson (2005): Formulation, imple-

mentation and control of competitive strategy. Ninth edition. McGraw
Hill, ISBN 0-07-294688
• Capstone Business Simulation Management Simulation Inc.
• Additionally, there is a reader for the course that contains the cases.
The reader can be purchased at the following web-site:
http://www.hbsp.com/relay.jhtml?name=cp&c=c42231
Course ID: c42231

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Session 1 : August 23: Introduction

Lecture: Introduction to the course. Introduction of the Capstone Simulation
Exercise.
Simulation Exercise: Group formation & Situation analysis

Session 2 : August 30: Strategic Management:

An overview
In class exercises (these will be handed out in class)

• Carter racing exercise

• Moon landing exercise

Lecture: An overview of Strategic Management. Biases in decision making.

Reading: Pearce and Robinson: Chapter 1
Simulation Exercise: Introductory lesson homework due

Session 3 : September 6: The mission state-

ments & social responsibility
In class exercises (these will be handed out in class)

• Panalba exercise

• Create a mission statement for Caribou Coffee

Lecture: Defining the company’s mission statement and social responsibility

Reading: Pearce and Robinson: Chapter 2
Simulation Exercise: Trial round 1 due prior to class. Feedback on trial
round 1 will be given in class

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Session 4 : September 13: External environ-

ment
Case for class discussion and exercise:

• Hitting the Wall

• Role playing global chemical stakeholder’s interest and power (instruc-

tions for this exercise will be given in class)

Lecture: External environment. Game theoretical reasoning.

Reading: Pearce and Robinson: Chapter 3
Simulation Exercise: Trial round 2 due prior to class. Feedback trial round
2 will be given in class

Session 5 : September 20: Global environment

Cases for class discussion:

• Video Game Industry: Power Play A

• Bitter Competition: The Holland Sweetener Co vs NutraSweet (A)

Lecture: Global environment

Reading: Pearce and Robinson: Chapter 4
Simulation Exercise: Formal round 1 due prior to class. Feedback on Formal
Round 1 will be given in class

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Session 6 : September 27: Internal analysis

Cases for class discussion:

• The Strategies Required in the Global Marketplace (video)

• Procter and Gamble Europe: Vizir Launch

Lecture: Internal analysis

Reading: Pearce and Robinson: Chapter 5
Simulation Exercise: Formal round 2 due prior to class. Feedback on round
2 will be given in class

Session 7 : October 4: Formulating long term

strategic objectives
Cases for class discussion:

• Wal-mart Stores discount operations

• Crown Cork and Seal in 1989

Lecture: Formulating long term strategic objectives

Reading: Pearce and Robinson: Chapter 6
Simulation Exercise: Formal round 3 due prior to class. Feedback on round
3 will be given in class

Session 8 : October 11: Exam

Exam 1.
Simulation Exercise: Formal round 4 due prior to class. Feedback on round
4 will be given in class

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Session 9 : October 18: Strategic Analysis and

Choice in single or dominant product busi-
nesses
Cases from class discussion:

• Visionary Companies: Their Success and Characteristics (video)

• Honda A-Honda B

Lecture: Strategic Analysis and Choice in single or dominant product busi-

nesses: Building sustainable competitive advantage
Reading: Pearce and Robinson: Chapter 7
Simulation Exercise: Formal round 5 due prior to class. Feedback on round
5 will be given in class

Session 10 : October 25: Strategic Analysis

and choice in the multi-business company
Cases for class discussion:

• Intel 1968–97

• Coca-Cola vs Pepsi Cola and the Soft Drink Company

Lecture: Strategic Analysis and choice in the multi-business company

Reading: Pearce and Robinson: Chapter 8
Simulation Exercise: Formal round 6 due prior to class. Feedback on round
6 will be given in class

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Session 11 : November 1: Implementing strat-

egy: Structure, leadership and culture
Cases for class discussion:

• Cooper Industries Corporate Strategy (A)

• Implementing Strategy: Managing Through Organizational Culture

(video)

Lecture: Implementing strategy: Structure, leadership and culture

Reading: Pearce and Robinson: Chapter 10
Simulation Exercise: Formal round 7 due prior to class. Feedback on round
7 will be given in class

Session 12 : November 8: Strategic control

and continuous improvement
Case for class discussion:

• Southwest Airlines

Overview for Exam 2

Simulation Exercise: Formal round 8 due prior to class. Feedback on round
8 will be given in class

Session 13 : November 15: Overview

Simulation Exercise: Group reports

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Session 14 : November 22: Simulation exer-

cise reports

Simulation Exercise: Group reports

Session 15 : November 29: Exam 2

Exam

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Evaluation
Individual Case Analysis
Students can choose among the cases listed in the scheduled part of the
syllabus 5 cases for individual case analysis. Each case analysis should be
about three pages long (double spaced) and follow the general format of
a case analysis (introduction, analysis and problem identification, theory
application, and recommendation). Two copies of each case analysis should
be submitted in class on the date when the case is scheduled for discussion.
Each case analysis will be evaluated based on both the content and on the
quality of the writing. The content portion will be assessed on how well the
student applied the theoretical framework that discussion in the previous
class to solve the case. The writing portion will be assessed on spelling,
grammar, syntax, organization and flow, word choice, and overall writing
style.
If a student’s writing portion is below 50%, s/he will be required rewrite it.
Students with a higher score on the original writing portion can also choose
to rewrite it to further improve the writing scores. The revised assignment
should be submitted at the next class and have the cover page indicating
that it is a rewrite of a the specific assignment with the originally graded
case analysis attached. A new credit for the writing portion will then be
given based on the writing tutor’s reassessment of the revised work.

Individual Class Participation

Class participation will be graded based on the quantity and quality of con-
tributions to the case discussion during the class. With regard to quality,
some of the following criteria normally applied are

• Are the points that have been made relevant to the discussion?

• Are the points simple recitations of case facts, or have new implications
been drawn?

• Is there evidence of analysis rather than mere expression of opinions?

• Are the comments linked to those of others?

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• Did the contribution further the class’ understanding of the issue?

Each students will begin the course by receiving half of the possibly attainable
class participation point, but can lose points by repeated absence from class
or from complete lack of class participation.

Group Simulation Exercise

The group simulation exercise will allow students to practice some of the key
concepts and theories learned in the course while managing in a competitive
business environment. There will be eight formal rounds in this simulation
exercise – each round is equivalent to a calendar year of the business. Stu-
dents are expected to have carefully read the manual. Two trial rounds
before the formal exercise begins will allow students to get familiar with the
process.
Students are expected to meet outside of the class time to prepare weekly
simulation decisions and to upload their decisions to the simulation web-site
two days before the class. When possible, class time will be given for groups
to discuss simulation activities. To be effective team members, students
should prepare themselves for the team meetings by analyzing data in their
particular area of responsibilities and prepare the various types of documents
for presentation to the team. Results of each group’s exercise will be provided
back to each group in the next class.
The grading for this simulation exercise will be based on the following:

• Group Simulation Performance

• Written and oral report on the simulation exercise: The reports should
describe the original strategy of the company, the rationale behind this
strategy, the change in the company’s strategy over-time, the result of
the simulation exercise and what did the group learn from the exercise.
The oral report should not exceed 10 minutes, while the written report
should be at maximum eight pages long (double-spaced.

Individual Exams
There will be two non-cumulative multiple-choice exams during the semester.
They will serve to evaluate how well the student has mastered the knowledge

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and can apply the basic theories and concepts learned during each stage of
the course. Students should bring scan-tron sheets and pencils for the exams.
No make-up exams will be given! If a student has a dispute with the
grading, he or she can request in writing that the portion of the exam be
reevaluated with the supporting evidence clearly stated.

Final Grade
Following the university’s guideline for grade distribution, the final grade of
a student will be based on the relative standing of his or her total credit
points accumulated from all the requirements as compared with the rest of
the class.
After the final exam, there will be designated office hours for final grade
checking in the instructor’s office. If a student cannot make those office
hours, s/he can bring a self addressed and stamped envelope to class on the
date of the final exam, or simply wait for the university to mail the final
grade.
In appliance with the university’s policy of confidentiality, no grade informa-
tion will be transmitted via phone or e-mail.

Important Notes
Throughout the semester, each student is expected to follow the university’s
guideline on student conduct with regard to cheating and other dishonorable
behaviors. Severe consequences can occur if such rules are not followed.
The instructor also reserves the right to deduct from a student’s individual
class participation credit if the student has shown severe non-constructive
behavior in class (such as disrupting the class or abusing another individual),
in addition to other disciplinary actions.
If a student is absent or late to a class meeting, it will be his or her respon-
sibility to catch up with all the missed materials including to learn of any
announcement made while the student was absent. No make-up exams or
lectures will be given. It will also be the students’ responsibility to accept
any consequences that may result from absences. No late assignment will be
accepted.

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Students are responsible to form their own groups before the deadline. Once
the group is formed, a group composition sheet will be provided to the in-
structor for record. The group will function throughout the whole semester
for activities including group case discussion and group simulation exercises.
A student’s credit on group activities will be counted only after his/her name
has appeared in a group composition sheet.
Finally, it is a student’s responsibility to read the syllabus thoroughly and
regularly and keep track of all the important dates and requirements every
week. Experience shows that the answer for most questions that students
ask can in fact be found in the syllabus.

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