The Lee Kong Chian School of Business Academic Year 2011 /12 Term 3A MGMT 102 STRATEGY

Instructor: Title: Tel: Email: Office: Dr Terence Fan Assistant Professor of Strategic Management +65-6828-0708 terencefan@smu.edu.sg LKCSB #0512 (5th floor, turn left out of main elevators, and left again, then straight)

COURSE DESCRIPTION
This course introduces students to the theoretical concepts and analytical tools required for formulating and implementing appropriate strategies that affect the enduring success of the entire organization. Topics covered include external and internal environmental analyses, business-level strategies, corporate-level strategies, strategy process and implementation, and special topics such as competitive dynamics and competition in high tech industries. This course emphasizes the application of theory to the real world strategic issues. Students are encouraged to synthesize knowledge from other business courses into a comprehensive understanding of competitive advantage.

LEARNING OBJECTIVES
By the end of this course, students will be able to: Demonstrate a comprehensive understanding of competitive advantage Apply analytical techniques for diagnosing strategy formulation, including industry structure, resources, and business/corporate strategies Apply analytical techniques for diagnosing strategy implementation, including corporate governance, structure, and strategic leadership Identify strategic issues and design appropriate courses of action

PRE-REQUISITE/ CO-REQUISITE/ MUTUALLY EXCLUSIVE COURSE(S)

Please refer to the Course Catalogue on OASIS for the most updated list of pre-requisites / co-requisites for this particular course. Do note that if this course has a co-requisite, it means that the course has to be taken together with another course. Dropping one course during BOSS bidding would result in both courses being dropped at the same time.

UPDATED ASSESSMENT METHODS (MGMT 102 in 2011/12 Term 3A)

Tentatively, students will be assessed in both group projects and individual contribution through the following: (1) Class participation (in-class only) 10% individually (2) Short case analysis & recommendation (2 best out of 3) 2 10% = 20% individually (3) Detailed case analysis & recommendation (1 throughout term) 25% individually (4) Group project 20% in self-organized groups (5) Final examination 25% individually Academic Integrity All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work of other students) are serious offences. All work presented in class must be the students own work. Any student caught violating this policy may result in the student receiving zero marks for the component assessment or a fail grade for the course. This policy applies to all works (whether oral or written) submitted for purposes of assessment.

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Where in doubt, students are encouraged to consult the instructors of the course. Details on the SMU Code of Academic Integrity may be accessed at http://www.smuscd.org/resources.html.

CONSULTATION AND TEACHING ASSISTANTS

Sections G1 Noon 3:15 pm LKCSB SR 3.6 G1 10 am Fridays except 15 May or by appt Notes Teaching assistants TBC Office Hour at LKCSB Office 5012

RECOMMENDED TEXT
Much of the materials covered in the seminars will be based on chapters from this book: Strategy Analysis and Practice (Second Edition, 2010) by John McGee, Howard Thomas & David Wilson. Additional materials will be included from these books: The Management of Strategy Concepts and Cases (Eighth Edition, 2009) by D. Ireland, J. Hoskisson & M. Hitt. The Theory of Industrial Organization (Thirteenth printing, 2002) by Jean Tirole. Several academic papers would complement select sessions and materials in the above texts. These include: Pricing response to entry and agglomeration effects. By B.T. McCann & G. Vroom, in 2010. Strategic Management Journal 31(3), 284-305. Stability in Competition. By H. Hotelling in 1929. Economic Journal 39, 41-57. Case materials from Harvard Business School will be available for purchase at the Course Support Services at the Library Other materials will be provided in class.

INSTRUCTIONAL METHODS AND EXPECTATIONS

Strategy is a complex discipline. We examine it from a variety of perspectives, and through the use of a number of real-life cases. At the core of this case method is the requirement that each student reads in detail beforehand the case to be discussed, and prepare his/her thought in advance as to how the company succeeded, what it should do to improve its performance, etc. Due to the short time intervals between classes in the summer term, students will be allowed some time at the beginning of each class to write out their thoughts of the case to be discussed. Students could use some of this time to catch up on their reading. However, at least several of these written analyses and recommendations will contribute toward the final grade. (1) Individual Class Participation (10%) Intelligent questions, lively discussions and debates are expected of each student over the course of the academic term. Many questions will be posed throughout the course, and these questions are meant to stimulate the thinking process. Googling for information or facts will do nothing to help improve your thinking. The assessment will be based on the following: 4% or less: projects a negative attitude toward the learning environment; 6%: mostly present in class but rare contributions; 8%: mostly echoing what other students say, few original contributions; 10%: intelligent contributions in most classes through insightful questions and well-reasoned ideas, contributing to a positive learning environment. (2) Short case analysis & recommendation (2 x 10%) In most classes that involve a case discussion, about 20-30 minutes will be provided at the start of the class for students to write down their analysis of the company and/or situation, and make recommendations or gather solutions to a question given at the start of the class. Students may be randomly called upon to substantiate his or her analyses or recommendations. Throughout the course, 3 short case analysis & recommendation will be marked these are denoted by a single asterisk in the detailed session-by-session schedule, and the best 2 marks will be taken. Much of the learning takes place in reading the case beforehand, and thinking insightfully about it, and this will show in these analyses. 8-10% will be achieved when a key reasoning is identified based on information in the case (plus reasonable knowledge on firms and their competitors), 5-7% will be achieved when something plausible is written, but not necessarily supported by solid reasoning; 2-4% will be achieved when the writing shows grossly inadequate comprehension of the case.

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(3) Detailed case analysis & recommendation (25%) These are similar to the short case analysis and recommendations described above, except that students will definitely require some simple calculations and thoughtful thinking about the case before class. Students will be given the exact question at the beginning of the class, and may be given somewhat more time to write out their answers. No computer print-outs allowed. Appropriate diagrams and graphs are encouraged. Students may be randomly called upon to substantiate his or her analyses. 20% or higher will be awarded to a well-defended analysis followed by appropriate recommendations or action plans. 15% to 19% will be awarded to a seriously flawed analysis and recommendations based on that. 10% to 14% will be awarded to a literal copying of select case materials without insightful thought. (4) Group Projects (20%) These should be accomplished in groups of no more than three students. Working alone is allowed. Project grade will be commensurate with the quality and quantity of work accomplished by the number of individuals in a group (e.g., a three-person group is expected to do more than a one-person group). Groups can share raw data with one another, but the analyses and findings presented by each group must be distinct from what is presented by other groups. Analyze whether there is room for growth (and of course how if there is) for select businesses in Singapore: - food & beverage retail - grocery retail - space travel - leisure sailboat/yacht charters The names of focal companies, where appropriate, will be released after the course commences. Depending on the industry, each group should expect to gather first-hand data on prices of items available for sale by the focal firm and its competitors, location of branches where applicable, customers willingness to pay, any unfulfilled demand, cost of operation, strategic positioning, firm-specific capabilities, etc., and use the relevant information to formulate a strategic analysis and plan for the company. This analysis and plan should be encompassed within well-annotated slides (details are important) designed for a 10-minute presentation (with back-up details). The presentation should not involve more than 12 slides (with additional slides as backup). 5% will be awarded for a professional presentation and thoughtful answers tailored for questions raised after the presentation. Another 5% will be awarded for the perception by other students of your professionalism in presentation and thoughtfulness in answers. 10% will be awarded for the details of your printed slides (which should be organized like a report) and strength of your analysis/recommendations. Please start your presentation (and printed slides) with a summary of your analysis and overall recommendation. (5) Final Examination (25%) There will likely be a combination of short-answer questions (possibly multiple-choice questions) that require no more than two sentences to answer and several in-depth questions that would require up to five sentences or some simple calculations. It will likely be closed-book. Students who have done their readings ahead of class throughout the course should not have to study much about the final examination.

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MGMT102 Strategy Term 3A Schedule 2011/12

Session 1: 2 May Topics and Broad Questions 1. Introduction to the Course & expectations 2. The case for firm-level strategy 3. Links from micro-economics 4. Links from macro-economics Case Discussion: Vanke 2: 3 May 5. Case Discussion: Port Aventura* 6. Competitor analysis; strategic positioning 3: 8 May 7. Case Discussion: Southwest Airlines 8. Internal organization & competitive advantage 4: 9 May 9. Case Discussion: Walmart* 10. Choices & internal organization 5: 10 May 11. Case Discussion: Ryanair** 12. Location-based strategies: Competition vs agglomeration 6: 12 May (Saturday Same time) 7: 15-17 May 8: 22May 13. Case Discussion: Honda (A), Honda (B)* 14. Project Work 15. Case Discussion: Canon 16. Resource-based view of the firm 9: 23 May 17. Case Discussion: Apple* 18. Innovation & Learning Read McGee et al. (2010) p.59-67, & Chapter 12 Read McGee et al. (2010) Chapter 4 Read McGee et al. (2010) Case 9 Case to be distributed Read McGee et al. (2010) rest of Chapter 3 Read McGee et al. (2010) Case 2 Read McGee et al. (2010) 5.22 5.3.2 (p.142-153) Case to be distributed Read McGee et al. (2010) Chapter 13 HBS case in Course Pack Read Tirole (2002) p.96-99; Read McCann & Vroom (2010) Read McGee et al. (2010) Case 4 Please make use of this week to complete most of your group project Read McGee et al. (2010) Case 1 Read McGee et al. (2010) Chapter 6 Read McGee et al. (2010) Case 7 Read McGee et al. (2010) Chapter 14 Student Assignments and Presentations Course overview note choices & deadlines

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Session 10: 24 May

Topics and Broad Questions 19. Case Discussion: eBay** 20. Strategy in the digital economy

Student Assignments and Presentations HBS case in Course Pack Read McGee et al. (2010) Chapter 7 Read McGee et al. (2010) Case 6 Read McGee et al. (2010) rest of Chapter 5, & Chapters 9 Read McGee et al. (2010) Chapter 8 Submission of well-annotated slides Read McGee et al. (2010) Chapters 1 & 2 2:00 pm

11: 29 May

21. Case Discussion: Renault Nissan 22. Global strategies & international advantage 23. Multi-business firms

12: 30 May

24: Presentation of group projects 25: What is strategy

13: 31 May

26: Final examination

* Short analysis & recommendation (most qualitative analysis plus some crude calculations) ** Detailed analysis (requiring detailed calculations before class)

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