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MANAGEMENT 425 BUSINESS STRATEGY AND POLICY Summer 2011 at NEU-Hanoi, Vietnam
Meeting Day/Time and Classroom: MoTuWeThFr 9:30am-12:15pm at NEU in Hanoi, Vietnam Text: 1) The Quest for Competitive Advantage: Concepts & Cases 17th Edition by Arthur A.Thompson Jr, A. J. Strickland III, and John E. Gamble, published by McGraw Hill. INTRODUCTION Unlike other business courses that concentrate narrowly on a particular function or piece of the business such as Accounting, Marketing, Production, Human Resource or Information Systems, Strategic Management is a big picture course. It cuts across the whole spectrum of business and management. The center of attention is the total enterprise the industry and competitive environment which it operates in, its long-term direction and strategy, its resources and competitive capabilities, and its prospects for success. Throughout the course, the spotlight will be focused on the foremost issues in running a business enterprise: What must managers do, and do well, to make the company a winner in the game of business? The answer that emerges, and which becomes the theme of the course is that good strategy-making and good strategy-execution are the key ingredients of company success and the most reliable signs of good business performance. The mission of the course is to explore why good strategic management leads to good business performance, Dr. Philip Chong to present the basic concepts and Professor of Business Management tools of strategic analysis, and to Department of Management/HRM drill you in the methods of crafting a College of Business Administration well-conceived strategy and California State University Long executing it competently. Beach You will be called upon to probe, Phone: None question, and evaluate all aspects of Email: pchong@csulb.edu a companys external and internal Office: NEU Hanoi situation. You will grapple with Off Hours: Before and after class sizing up a companys standing in the marketplace and its ability to go head-to-head with rivals, learn to tell

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the difference between winning strategies and mediocre strategies, and become more skilled in spotting ways to improve a companys strategy or its execution. In the midst of all this, another purpose is to help you synthesize what you have learned in prior business courses. Dealing with the grand sweep of how to manage all the pieces of a business makes strategic management an integrative, capstone course in which you reach back to use concepts and techniques covered in previous courses. For perhaps the first time you will see how the various pieces of the business puzzle fit together and why the different parts of a business need to be managed in strategic harmony for the organization to operate in a winning fashion. The next few weeks will be Exciting, Fun, Challenging, and Filled with Learning Opportunities. No matter what your major is, the content of this course has all the ingredients to be the best course you have taken best in the sense of learning a lot about business, holding your interest from beginning to end, and enhancing your powers of business judgment. As you tackle the subject matter, ponder Ralph Waldo Emersons observation, Commerce is a game of skill which many people play, but which few play well. The overriding intent of MGMT 425 is to help you become a savvier player and better prepare you for a successful business career. I sincerely hope this course will prove to be instrumental in making you competitively superior, successful in your career, a much wiser about the secrets of first-rate management. COURSE OBECTIVES 1. To develop your capacity to think strategically about a company, its present business position, its long-term direction, its recourses and competitive capabilities, the caliber of its strategy, and its opportunities for gaining sustainable competitive advantage. 2. To build your skills in conducting strategic analysis in a variety of industries and competitive situations and, especially, to provide you with a stronger understanding of the competitive challenges of a global market environment. 3. To give you hands-on experience in crafting business strategy, reasoning carefully about strategic options, using what-if analysis to evaluate action alternatives, and making sound strategic decision. 4. To acquaint you with the managerial tasks associated with implementing and executing company strategies, drill you in the range of actions managers can take to promote competent strategy execution, and give you some confidence in being able to function effectively as part of a companys strategy-implementation team. 5. To integrate the knowledge gained in earlier core courses in the business school curriculum, show you how the various pieces of the business need to be managed in strategic harmony for the organization to operate in a winning fashion.

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6. To develop your powers of managerial judgment, help you learn how to assess business risk, and improve your ability to make sound decision and achieve effective outcomes. 7. To help you become more proficient in using personal computers to do managerial analysis and managerial work. 8. To make you more conscious about the importance of exemplary ethical principles, sound personal and company values, and socially responsible management practices. GRADING Your course grade will be awarded based on the following components and point allocations: Participation Portfolio Class quiz (3 @ 10 points each) Exams on lecture/text materials (3 mid-terms/final** @200 points each) Written case assignments (2 cases* @75 points each) Oral Team Presentation/Slides (adjusted for peer group evaluation) Grand Total Points 40 30 600 150 180 Total 40 630 330 -----1000 ------

*Turn in only 2 of the 3 cases assigned. **Final exam is optional since the best three of the four exams will be counted towards your course grade. Letter grades are based on the following scale: A B C D F CLASS ATTENDANCE Attendance at all class sessions is expected. Roll will be taken every class session. Missing one class session may result in deduction of points. Students who will be absent at some point during Total Class points 900-1000 800-899 700-799 600-699 Below 600

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the semester owing to religious observance, jury duty or other government obligations, or any official university-sponsored activity must provide a written notice of that fact to the instructor during the first week of class meeting. Failure to do so will result in that absence not being counted as an excused absence. It is the responsibility of the student to arrange with the instructor to make up any academic work missed. The make-up is only applied to excused absence, not to other types of absence.

CLASS PARTICIPATION There will be a variety of participation activities and assignments throughout the course. So its important to attend class. Keep a portfolio folder of all the participation activity assignments. All documents in your portfolio should be typed (not handwritten). You will turn in the portfolio folder at the end of the course. You should organize your portfolio documents and present them in a way to demonstrate that you have been actively participating in the course. The following are the many areas (or ways) you may earn your participation points, but you must always remember to record your answers in all the activities and keep them in your portfolio. Your portfolio should be four pages long and they should answer the following questions: 1) Did you carry out the activities assigned during or at the end of the class? These should include team activities in and outside of class. Remember to record your answers and keep them in your portfolio (1-page long). 2) Did you volunteer to actively participate in class discussion and to offer meaningful analysis and convincing arguments for the position you stake out? You should therefore, make a conscientious effort to be sufficiently prepared to make intelligent and timely comments regarding the issues raised in class. Remember to record your participation and keep them in your portfolio (1-page long). 3) Did you ask questions and/or write a critique after each team presentation. After every team presentation, students will be invited to ask the presentation team questions related to their presentation. You will also write a critique (strengths, weaknesses and opportunities for improvements) for each of the presentations. Remember to record your participation and keep them in your portfolio (2-pages long). CLASS QUIZZES

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One key to success in this course is careful preparation of the assigned readings, especially cases. Students should prepare themselves for class discussions and lectures. Three small quizzes will be given at the beginning of class meetings. The quizzes will cover the content of the assigned reading text and case materials, which will be lectured and discussed in the class meetings following the Tentative Class Schedule provided in the syllabus. The small quizzes are close-book and close-note individual work. The purpose is to examine how well you prepare for the class meetings.

WRITTEN CASE ASSIGNMENT The written case assignment is to be prepared on an individual basis. It is expected that the content of your written case will reflect your thoughts and analysis rather than the work of others. You will turn in two of the three written case assignments. The first case is Dell, the second case is Walmart, and the third case is PepsiCo. The criteria for grading written case presentations include: 1. Correct identification of key problems/strategic issues following the Case Assignment Questions provided for each of these cases in the last few pages this syllabus. You should use two pages to answer each question. The total pages to turn in per case should be ten pages. 2. Use of appropriate analytical tools and techniques, including the use of charts and tables where appropriate. You are expected to demonstrate that you can use the tools and techniques of strategic analysis presented in the chapters. Both breadth and depth of analysis will be evaluated. 3. Presenting realistic, workable, well-supported recommendations for actions. 4. Evidence of adequate preparation, pride of workmanship, and display of professional attitude and approach. Written case assignments are to be turned in following the class schedule. All written case assignments are to be prepared individually. Group work is out of bounds. Cases turned in after the scheduled class meetings are subject to a deduction of 10 to 15 points from the total points that would otherwise be assigned. No late paper will be accepted if submitted more than one day past the scheduled due date (except by pre-arranged consent of the instructor). All written cases are to be typed (double-spaced) and should incorporate correct form, spelling, grammar, sentence structure, and communication skills. Papers which, in the opinion of the instructor, employ disproportionately poor grammar and poor quality written communication skills will not be graded.

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EXAMS ON LECTURES AND TEXT MATERIALS There are three required-to-take closed-book and closed-note exams. Each accounts for 200 points. Midterm 1 covers contents of Chapter 2, 3 and 4. Midterm 2 covers contents of Chapter 5, 6 and 7. Midterm 3 covers contents of Chapter 8, 10 and 11. Exams include multiple-choice questions only, and are based on lectures, text contents, and case presentations and discussions. The final exam is also closed-book and closed-note, but it is optional, which may be used as a make-up exam for a midterm that students are not able to take with acceptable excuse, or to replace one lower midterm grade. However, the final exam is cumulative, which will cover all nine chapters but with the same number of questions as a midterm exam. All exams are 60 minutes long. THE TEAM PRESENTATION AND PEER EVALUATION On the day of your presentation, your team will provide me with a hard copy of your PowerPoint slide handout (6 slides per page). I will award you a team score. However, you will rate all the other team members using the Peer Evaluation Form provided in the syllabus, and turn in the forms on the last class meeting day. You will use as many forms as necessary to distinguish your team members contribution towards the presentation project (if all members have equal contribution then one form will do). Based on the ratings from the peer evaluation forms, I will readjust the individual score for each member of the team. Therefore it is important that you cooperate and work well with all members of the team throughout the course of the semester. You should communicate and inform all members of your team, so they are aware of your contribution. HOW TO PREPARE FOR TEAM PRESENTATION I. PREPARATION A. Your team will select and conduct research of company to study, and develop a set of Power Point presentation slides (not to exceed 50 slides). B. Based on research of the mission/vision statement of the company (normally connected with the mission statement are statements of values and business philosophy), develop a presentation outline showing how the company goes about to carry out its mission statement. C. Your presentation outline should be organized IN THE ORDER of the following topics: 1) Selected events (about 5 events) in history showing how the current mission/vision statement comes to be what it is today for the company; 2) Clear statement of their mission/vision statement including values and business philosophy, quotes from company leaders, strategies used by company (show analysis using SWOT, 5-Forces model, one of the five Generic Competitive Strategies); 3) The approaches the company used in carrying out their mission statement in order to ensure they meet the needs of their

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stakeholders including a) Customers and Suppliers - describe products, marketing, and operations; b) Employees - describe human resource issues; c) Stockholders describe six financial and business results/ratios using graphs showing Annual Revenues, Net profit margins, Return on stockholders equity, Debt-to-equity ratio, Inventory turnover (if it is meaningful when applied to your company), Stock prices, and benchmarked against their rivals over period of at least five years; and d) Community - describe philanthropy and community service; 4) Future outlook of the company showing how the company intends to capture the opportunities identified in the SWOT analysis. D. Use examples and illustrations whenever possible to develop the topics mentioned in C. Relate the main topics and coverage of your presentation to the mission statement and business philosophy of the company. 1 1. Did you keep your presentation focus on mission statement? 2. Did your presentation show how text principles are applied in companies? E. Let your mission statement drive your presentation in the selection of areas and topics to cover, illustrations to use, visual aids, dress attire, etc. Make sure that your topics stay focused on the mission statement throughout your presentation from introduction to conclusion.

II. GENERAL COMMENTS You are required to turn in to me a hard copy of your presentation slide handout (4 slides per page) on the day of the presentation. You should be prepared to answer any questions from the class after your presentation. Be sure to list the names of your team members on the first slide. PRESENTATION PROCEDURES AND GUIDELINES III. PREPARING FOR PRESENTATION 2 A. Follow the 'HOW TO PREPARE FOR PRESENTATION' guidelines. B. Go over presentation out loud ONCE before your scheduled day of presentation. C. Maximum time for presentation: 30 minutes. Points will be deducted for not staying within one minute of allotted time. D. Maximum time for Q&A after presentation: 15 minutes. IV. GRADING CRITERIA A. Did you use information from text chapters and outside research to understand and explain the facts in your presentation? B. Check list for your presentation (see evaluation forms): 1. Is there a mission statement and is it clearly developed?

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2.

Is development logical, thorough, organized, clear? Did you stay focused on mission/vision statement? 3. Are there illustrative connections between chapter topics mentioned in the guidelines and research material? 4. Did you make effective use of visual aids, poster boards, product displays? 5. Did you complete your presentation in the allotted time?

V. THE BOTTOM LINE A. You will need to manage your team well. B. In the course of the semester, your team will make one presentation only. C. REMEMBER that these are group processes 1. spread the workload through effective management within the group 2. invest up-front time learning how to use group processes efficiently D. My suggestion: 1. brainstorm each case as a group a. each member reads the chapters and conduct research in advance of the group meeting. b. each member then contributes to the group brainstorming. c. appoint a scribe to record the brainstorming for each session. 2. work as a team to develop a seamless presentation a. if one person is not a good presenter, let them play a smaller role in the presentation. 3. for the presentations, consider using the group as a discussion panel: a. one member acts as a moderator for the group b. each member contributes to the panel discussion c. audience participation is allowed only during the Q and A time following the presentation.

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THE TENTATIVE CLASS SCHEDULE Dates 20 Jun 21 Jun Assignment/Activity Orientation and course overview/Team assignment Lecture/discussion of Chapter 2 Dell videos discussion/Team work time Market snapshot video/CBA vision statement/Team work time Lecture /discussion of Chapter 3 /Team work time Lecture/discussion of Chapter 4/Team work time Quiz 1 Midterm 1 Chapters 2, 3, and 4 Team progress report 1 Lecture/discussion of Chapter 5/Team work time First written case assignment (Dell-C115) is due Walmart videos discussion/Team work time Lecture/discussion of Chapters 6/Team work time Lecture/discussion of Chapters 7/Team work time Quiz 2

22 Jun 23 Jun

24 Jun

27 Jun 28 Jun

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29 Jun

Midterm 2 Chapters 5, 6 and 7 Team progress report 2 Lecture/discussion of Chapter 8/Team work time Lecture/discussion of Chapters 10/Team work time

30 Jun

01 Jul

Second written assignment (Walmart-C367) is due PepsiCo videos discussion/Team work time Lecture/discussion of Chapters 11/Team work time Quiz 3 Midterm 3 Chapters 8, 10 and 11 Team progress report 3 Third case assignment (PepsiCo-C346) is due; Oral Team case/company presentations Oral Team case/company presentations Oral Team case/company presentations Final exam comprehensive covering all nine chapters

04 Jul 05 Jul 06 Jul 07 Jul 08 Jul

* This schedule is only tentative. The instructor reserves the right to make changes to the schedule as deemed necessary. Any such changes shall be communicated to the class. It is your responsibility to find out the changes that have been made to the syllabus.

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PEER EVALUATION COURSE TITLE: GROUP NUMBER: PREPARED BY: PERSON(S) EVALUATED: ___________________________________________ ___________________________________________ ___________________________________________ (First Name, Last Name) ___________________________________________ (First Name, Last Name)
Usually Occasionally Seldom Never

Attended Meetings

Always

Participated actively in case discussion Prepared some analysis in advance of group meetings Participated in preparation of case (writing, editing, typing, charts, tables, etc) Completed assignments on

Always

Usually

Occasionally Seldom

Never

Always

Usually

Occasionally Seldom

Never

Always

Usually

Occasionally Seldom

Never

Always

Usually

Occasionally Seldom

Never

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time Functioned as a pro-active group member Contributed in a significant way to the group effort Always Usually Occasionally Seldom Never

Always

Usually

Occasionally Seldom

Never

Dell Case Assignment Questions: 1. What is your evaluation of Michael Dells performance in his roles as Dells CEO and Chairman? How well has he performed the five tasks of crafting and executing strategy that were discussed in Chapter 2? 2. What are the elements of Dells strategy? Which one of the five generic competitive strategies is Dell employing? How well do the different pieces of Dells strategy fit together? In what ways is Dells strategy evolving? Does Dells expansion into other IT products and services make good strategic sense? Why or why not? 3. Conduct a financial analysis using the template provided on Beachboard. Is Dells strategy working? What is your assessment of the financial performance that Dells strategy has delivered during fiscal years 2001-2010? Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 104-105) as a basis for doing your calculations and drawing conclusions about Dells performance. 4. What does a SWOT analysis reveal about the attractiveness of Dells situation? Which company is competitively strongerDell or Hewlett-Packard? In what respects, if any, is Hewlett-Packards strategy in PCs more appealing or better than Dells strategy? 5. What issues and problems does Michael Dell need to address? What actions and strategy changes would you recommend to Michael Dell to boost the companys performance and its prospects for overtaking HP in global sales of PCs? From the videos we watched, what are some of the recent developments and new initiatives Dell is employing?

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Wal-Mart Case Assignment Questions: 1. What impresses you about this company? What accounts for Wal-Marts success over the past 25+ years? Is it a great strategy, superb strategy implementation and execution, or great leadership? What aspects of Wal-Mart do you find unimpressive? 2. Which of the five generic strategies is Wal-Mart employing? What are the chief elements of its strategy? 3. Conduct a financial analysis using the template provided on Beachboard. Is Wal-Marts strategy working well? What does the information in case Exhibit 1 and based on your analysis reveal about the companys strategic and financial performance during 2001-2010? Please use the financial ratios presented in Table 4.1 of Chapter 4 to guide your calculations and reach conclusions about the caliber of Wal-Marts financial performance. 4. What policies, practices, support systems, and management approaches underlie Wal-Marts efforts to execute the companys strategy? What are its chief elements and characteristics of Wal-Marts culture? Why does the culture seem to be so much stronger in Bentonville than out in the stores? 5. What is your assessment of Lee Scotts transformation initiatives? Are the initiatives sincere or just calculated to garner better PR for Wal-Mart? Are more transformational initiatives needed? Why or why not? What issues do Lee Scott and Wal-Mart management need to address? Based on the videos we watched in class, what does sustainability mean to CEO Mike Duke? What recommendations would you make to Lee Scott and to Mike Duke?

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PepsiCo Case Assignment Questions: 1. What is PepsiCos corporate strategy? Briefly identify the business strategies that PepsiCo is using in each of its consumer business segments. 2. What is your assessment of the long-term attractiveness of the industries represented in PepsiCos business portfolio? What is your assessment of the competitive strength of PepsiCos different business units? What does a 9-cell industry attractiveness/business strength matrix displaying PepsiCos business units look like? 3. Does PepsiCos portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? Does PepsiCos portfolio exhibit good resource fit? What are the cash flow characteristics of each of PepsiCos four segments? Which businesses are the strongest contributors to PepsiCos free cash flows? Based on the preceding analysis, what is your overall evaluation of PepsiCos business portfolio? Does the portfolio provide the companys shareholders with an opportunity for above-average market returns? 4. What strategic actions should Indra Nooyi take to sustain the corporations impressive financial and market performance? Should its free cash flows be used to fund additional share repurchase plans, pay higher dividends, make acquisitions, expand internationally, or for other purposes? What other strategic actions should be pursued by corporate level management? Based on the videos we watched, what strategic actions is Indra Nooyi taking to sustain the corporations impressive financial and market performance? Also, what does sustainability mean to Indra Nooyi at PepsiCo? What recommendations would you make to Indra Nooyi and her management team as they expand globally around the world? 5. Conduct a financial analysis using the template provided on Beach-board. What does the financial information reveal about the companys success and performance during the 20012010 years?

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