355002001MBA

Strategic ManagementFall Semester, 2012

3 credit hours

Professor Yegmin Chang, Ph.D.Department of Business Administration

Office: 1012 Comm BldgPhone: x-81012

Email: ymchang@nccu.edu.tw

COURSE DESCRIPTION:

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This course is the capstone course in the MBA program. After finishing functional management courses such as marketing management, financial management, human resource management, etc. with which to learn to become a competent functional manager, students will study this course to learn how to integrate these functional courses and make business decisions that view the company as a whole. In other words, students learn to analyze business problems or issues confronting the total enterprise, not just interpret them as personnel, money, product, or production problems. The total enterprise perspective is the strategy perspective and making strategic decision from the-company-as-a-whole point of view is the job of general managers. Therefore, this course is designed to train students to analyze business situations from the point of view of the practicing general manager. General managers have responsibility for making strategic decisions that insure the long-term prosperity of the entire firm or a major division.

The key tasks of the general manager, the content of general management, include the determination of purpose and direction of the company or division, the detection of environmental change, the identification of opportunities and strategies to pursue the opportunities, the procurement and allocation of critical resources, the integration of activities across various parts of the organization, and, the monitoring of the whole process to achieve expected results. In short, the general manager is the mediator between environmental change and internal organization’s response. To be effective, general managers need to have foresight of environmental changes and at the same time have a sound understanding of how an organization with its loose-coupling parts produces outcomes. He needs relevant knowledge in functional areas such as marketing, finance, R&D, and production which students have already learned the subjects in previous courses. He also needs relevant knowledge and skills in environmental analysis to understand emerging trends in demands and competition. These knowledge and skills will be the focus of this course.

Not everyone who takes this course will ultimately become a general manager. Yet, for two reasons, this course will benefit virtually all students. First, recent trends in the corporate world towards creating “flatter”, less hierarchical organizations have resulted in strategic decisions being made at lower hierarchical levels. Thus, even non-executives are likely to make decisions and initiate actions that have significant strategic implications. Similarly, even the lowest level employees within firms are now being asked to contribute innovative and creative ideas that will improve the functioning of the organization as a whole. Thus, it is increasingly important for non-executives to understand how their actions affect the whole enterprise. Second, functional specialists will also benefit from developing a general management perspective so they will have a better understanding of the problems they are dealing with and

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of the expectations of the top executives. Ultimately, every function’s actions must be coordinated with the overall needs of the business. In fact, functional specialists are the people on whom general managers must rely to implement strategy. Since functional managers are often under pressure to fix problems in their own areas without regard to the overall needs of the business, it is critical that functional managers develop a keen awareness and appreciation of the challenges facing the enterprise as a whole.

TEXTBOOK and CASES:

1) Recommended Textbook：

(a) Barney, Jay B. Gaining and Sustaining Competitive Advantage. 3rd Ed., Prentice-Hall, 2008.

(b) Rebert M. Grant, Contemporary Strategy Analysis. 6th ed.,, Oxford: Blackwell Publication. 2009.

(c) Kim, W, Chan, and R. Mauborgne, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business School Press, 2005.

2) Readings: a couple of Harvard Business Review articles could be found in university’s Moodle learning website under the course number..

3) Cases: Harvard Business School Cases (to be purchased from PERDO office).

RECOMMENDED BOOKS:

1. Porter, M.E. Competitive Strategy, Free Press, 1980.

2. Hamel, Gary, and C.K. Prahalad, Competing for Future, HBS Press, 1994.

3. Hamel, Gary, Leading Revolution, HBS Press, 2000.

4. Barlett, C. A. and S. Ghoshal, The Individualized Corporation, Harper-Collins, 1997.

5. Porter, M. E., On Competition, HBS Press.

6. Mintzberg, . et. al., Strategy Safari: A Guide Tour through the Wilds of Strategic Management. Free Press, 1998.

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7. Bossidy, D. and R. Charan, Execution: The Discipline of Getting Things Done, 2002.

COURSE OBJECTIVES:

1. The general manager’s perspective, or strategic perspective.

2. The strategic management/strategic planning/strategic decision making process, including SWOT analysis.

3. The strategy content, including business level strategy, corporate-level strategy, and international strategy.

Specifically, the course aims to assist students to

1. Develop and reinforce a general management point of view -- the capacity to view the firm from an overall perspective, in the context of its environment.

2. Develop an understanding of fundamental concepts in strategic management: the concept of strategy, the strategic decision making process, environmental analysis, competitive analysis, and strategy implementation and organizational change.

3. Synthesize the knowledge gained in previous courses.

4. Obtain familiarity with tools of industry analysis by analyzing the key characteristics of an industry.

5. Develop a better understanding of the inner workings of large, complex organizations – the goal being for students to better understand their future work environment.

6. Apply in working out business strategies and implementation plans.

7. Develop habits of orderly, analytical thinking and skill in reporting conclusions effectively in both written and oral form.

METHODS OF INSTRUCTION

Lecture 10%

Discussion 65%

Group activity (Group 15%

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presentation)

E-learning 5%

Others (Field Trip)： 5%

SCHEDULE

Week Date Class Content & study material Source

1 9/17 Course Overview

Reading: Porter, What is Strategy (HBR)

2 9/24 The Concept of Strategy

Reading: Can You Say What Your Strategy Is (HBR)

Moodle

Case: Harley-Davidson Preparing for the Next Century

HBS 906410

Required Reading: CMR84-Perspectives on Strategy Real Story Honda

Moodle

3 10/1 Five Forces and Industry Structure

Reading: Porter, The Five Competing Forces that Shape Strategy (HBR)

Moodle

Case: Crown Cork and Seal in 1989 HBS 973035

4 10/8 Case: Apple Inc. in 2010 HBS 710467

5 10/15 Case: Bally Total Fitness HBS 706450

Case: Cola Wars Continue: Coke and Pepsi in 2010

HBS 711462

6 10/22 Understanding Competition and Emergent Strategy

Case: Netflix HBS 607138

Case: HTC Corp. in 2009 HBS 709466

7 10/29 Competitive Positioning

Reading: Ghemawat, Creating Competitive Advantage

Moodle

Case: Wal-Mart Stores, 2003 (Abridged Version) HBS 709423

Case: Tata Nano the People's car

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8 11/5 Case: Samsung Electronics HBS 705-508

Case: Airborne Express HBS 798070

9 11/12 Reading: Value Innovation the Strategic Logic of High Growth (HBR)

Moodle

Case: Edward Jones in 2006: Confronting Success

HBS 707497

10 11/19

Midterm individual paper due

11 11/26 Case: Zara: Fast Fashion HBS 703497

12 12/3

Competitive Dynamics

Case: Asahi Breweries, Ltd. HBS 389114

Case: Dogfight over Europe: Ryanair (A) HBS 700115

13 12/10

Related Diversification

Reading: Creating Corporate Advantage Moodle

Case: Walt Disney Co.: The Entertainment King HBS 701035

14 12/17 Case: The Walt Disney Company and Pixar HBS 709462

15 12/24 Globalization as Diversification of Markets

Case: Haier: Taking a Chinese Company Global HBS 706401

Case: Globalization at Komatsu HBS 910415

16 12/31 Company Visit

17 1/7 Final Presentation of Group Case Projects

18 1/14 Final Presentation of Group Case Projects

ASSESSMENT:

1) Individual class participation 45%

2) Individual mid-term paper 25%

3) Final Group Case Project-report & presentation 30%

Class participation

It is important to appreciate that the students in the class are co-producers of the class discussion. It is crucial that you listen carefully to the questions that are posed and that the

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class collectively attempts to answer them. For this to happen, class members need to listen carefully to one another and to extend or critique prior comments. The discussion should be a conversation in which al participants recognize that they have an obligation to advance our understanding of the issue at hand. The extent of your contribution to this learning process will be appraised in addition to the content of what you contribute.

Consider the following questions when monitoring the effectiveness of your own participation:

1. Are the points relevant to the discussion? Are they linked to the comments of others and to the themes that the class is exploring together? Do they significantly advance the discussion?

2. Do the comments add to our understanding of the situation? Are they incisive? Do they cut to the core of the problem? Comments that simply repeat case facts get no credit.

3. Is there a willing to challenge the ideas that are being expressed? Playing “devil’s advocate” often exposes new perspectives and provokes interesting debate. Such contributions are particularly value.

Individual mid-term paper

Write an essay paper summarizing/synthesizing an emerging/new issue/concept within the discipline of strategy/strategic management based on at least three related articles you select from these three journals: Harvard Business Review, California Management Review, Sloan Management Review. The paper should be at least two pages long, double spaced, using 12-point font. The due time is 11:59pm, November 14.

Final Group Case Project-report & presentation

Group case project is to write and present a case analysis of a successful firm headquartered in SE&E Asia region. There are two types of case style to be adopted:

One is the general strategy case. The focus of the case is to report the strategy of a company. The case may include: (the case part) (a) A description of the brief history of the company, its strategy, its products, markets, and scope of operation; (the analysis part) (b) To explain why the company has been successful in the past in light of the company’s environment, resources, key managers’ decisions, or other relevant factors. (c) To conduct a SWOT analysis that analyze the current environment concerning its future trends and their

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impact on the firm and competition, as well as its internal weaknesses against achieving goals, and (d) to suggest changes (if any) that need to be made.

The second type is the strategy case with focused themes. The case may be about industry analysis and competitive dynamics, or about the company’s strategic issues with strategy themes such as merger and acquisition, diversification, investment expansion, new product launch, new market entry, restructuring, alliances,…etc. The case may include: (the case part) a description of the strategic decision situation, firms involved; (the analysis part) the theme/issue. Use of SWOT analysis is optional.

Each group may conduct field interview (the college has EMBA students) or library research or a combination of both to prepare the case. Each member of the group is expected to contribute a similar amount of effort to the teamwork. Each group may turn in (a) their PowerPoint file with no bonus points; or (b) a more complete version of the written report either in printed or electronic form as the final report with bonus points up to 10% of the original grade earned from this case project.

Expectations from students for creating a healthy learning environment

1. You are encouraged to form a study group that meet every week prior to the class to discuss and exchange viewpoints about each case. It will facilitate your participation in class case discussion. The study group may not be the same group that will work on the final case project.

2. Your class participation should not benefit from notes of case discussion from students who have taken this course in prior semesters or at other schools, nor from other sources such as Google, friends in Internet, etc. Also, simply reading from notes handed to you by a study group member is not acceptable.

3. Be prepared for every class. Students whose hands are not raised will be called on in addition to those who raise their hands. If you are not prepared for the class, let me know before the start of the class your personal problem or emergency that had made it impossible for you to prepare adequately for that class.

4. Because a case-oriented course relies on class participation for its success, attendance at every class is considered extremely important. Please schedule other activities at times other than when class meets. Missing classes will seriously adversely affect your grade.

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5. This is an integrative class – I shall be expecting you to draw on knowledge you have gained from your prior work or other courses. If you feel you do not have good grip of some important concepts, you are always encouraged to refresh your previous learning by checking on other textbooks or to google related key words of these concepts.

6. Please arrive on time and stay from beginning to end.

7. If you have discovered that you are not ready for this level of course, or not comfortable with case discussion, please drop from this course as early as possible.

Case Discussion Questions:

Case: Harley-Davidson Preparing for the Next Century

1. Historically, how did Harley-Davidson manage to dominate the US market? How did it do so and what were its sources of competitive advantage? And starting in the 1970s Harley-Davidson got into trouble, what changed? Internally? Externally?

2. What were the major ingredients of Harley-Davidson’s transformation process/ What elements seemed to you to be the most important? What is your evaluation of the transformation process?

3. What are Harley-Davidson’s current sources of competitive advantage? Can these be sustained in light of the latest competitor moves? If you are Honda, where do you think Harley-Davidson is vulnerable? What is the Harley-Davidson mystique?

4. What are challenges facing Harley-Davidson as it enters the 21st century? What is your evaluation of their current strategy? What specific recommendations do you have for Jeff Bluestein? Short-term? Long-term?

Case: Crown Cork and Seal in 1989

1. How attractive has the metal container been over the years?

2. How well did Crown Cork do under John Connelly? What were the keys to their success?

3. What significant changes are taking place in the industry? How should the new CEO, Bill Avery, respond? Is it finally time to change the Connelly strategy that has been successful for over 30 years?

Case: Apple Inc. in 2010

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1. What, historically, have been Apple’s competitive advantages?

2. Analyze the personal computer industry. Are the dynamics favorable or problematic for Apple?

3. How sustainable is Apple’s competitive position in PCs?

4. How sustainable is Apple’s competitive position in MP3 players?

5. How do you assess Apple’s competitive position in smartphones?

6. What are the prospects for the iPad?

Case: Bally Total Fitness

1. What does the health club industry look like in 2004? Who are the customers/suppliers? What is their relative power? What are the barriers to entry? Which companies are substitutes for Bally Total Fitness? How strong is the rivalry in the Fitness Industry? How attractive is this industry?

2. How is Bally Total Fitness positioned in the health club industry? What is Bally’s strategy?

3. If you were in charge of Bally Total Fitness, what would you do next?

4. What are the basic economics of health clubs?

5. How structurally attractive was the health club industry in 2004? What average level of returns would you expect it to support?

6. What do you see as the key trends in the industry in 2004? How do you think these trends will affect profitability, and evolve over time?

7. What advantages did Bally’s scale bring? What challenges did Bally face? Evaluate Bally’s response. What else might Bally do?

Case: Cola Wars Continue: Coke and Pepsi in 2010

1. Is the soft drink industry profitable? And why or why not?

2. Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?

3. How has the competition between Coke and Pepsi affected the industry profitability? Are these firms making strategic mistakes? And why or why not?

Case: Netflix

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1. Would you have been long or short Blockbuster stock at the time of the case? How about Netflix? Why?

2. Did Netflix do the same jobs for consumers that Blockbuster did? How did this evolve over time?

3. Compare Blockbuster’s and Netflix’s profit models. How might the differences affect the respective company’s strategies?

4. As you examine each major shift in Netflix’s strategy, what might have been an assumptions checklist that they might have used at each stage? What assumption checklist might you use for VOD?

Case: HTC Corp. in 2009

1. Evaluate HTC’s performance to date. What are its competitive advantages and vulnerabilities?

2. What should HTC’s OS strategy be? Should it stick with Windows Mobile and Android? Should HTC build its own platform? Add/drop others?

3. All smartphone companies with operating systems have opened their own app store, trying to emulate Apple’s success. Samsung and LG announced plans to do the same as well. Should HTC build its own app store> Do something else?

4. Peter Chou and Cher Wang want to make HTC into the leading smartphone company in the world. What kind of strategic actions are needed to achieve this goal?

Case: Wal-Mart Stores, 2003 (Abridged Version)

1. What are the sources of Wal-Mart’s competitive advantage in discount retailing?

2. How sustainable their position in discount retailing will be in the future?

Case: Tata Nano the People's car

1. What drove Tata to commit to design an affordable car?

2. How did Tata leverage his network to produce the Nano?

3. What enabled Tata to produce a disruptive innovation from such a large company?

4. How would you describe Tata's leadership style? How is that different from Chairman Lee at Samsung or Steve Jobs at Apple? Is one leadership style better than the other? What role does culture play? What criteria should we use to measure leadership success? Do different cultures have different measures?

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5. The case mentions a thin margin on the Tata Nano, estimate the break even point in units if Tata invests in plant capacity for an aggressive launch. Recommend your investment decision

Case: Zara: Fast Fashion

1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?

2. How specifically do the distinctive features of Zara’s business model affect its operating economics? Specifically, compare Zara with an average retailer with similar posted prices. In order to express all advantages/disadvantages on a common basis, you may find it convenient to assume that on average, retail selling prices are about twice as high as manufacturer’s selling prices.

3. Can you graph the linkages among Zara’s choices about how to compete, particularly ones connected to its quick-response capability, and the ways in which they create competitive advantage? What does the exercise suggest about such capabilities as bases for competitive advantage?

4. Why might Zara “fail”? How sustainable would you calibrate its competitive advantage as being relative to the kinds of advantages typically pursued by other apparel retailers?

Case: Samsung Electronics

1. What kind of advantage are the Chinese entrants seeking? How close are they to achieving that advantage?

2. How much of Samsung’s performance is based on its reputed how-cost advantage?

3. Can Samsung’s low-cost advantage withstand the Chinese threat on costs?

4. Does anyone think the numbers mask the fact that Samsung’s differentiation advantage is more important or easier to grow and sustain or both?

5. If Samsung is both low-cost and differentiated, how does it do both?

6. Why can’t more firms in other industries do the same?

Case: Airborne Express

1. How did the express mail industry evolve over time? What are the main changes in recent years and how were smaller competitors affected by these changes?

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2. Compare Airborne Express’s strategy with the strategies of FedEx and UPS.

3. What is the advantage of Airborne Express Strategy? How has Airborne Express managed to success in its industry?

Case: Edward Jones in 2006: Confronting Success

1. Why do you think Edward Jones survived the financial services crisis that has taken so many of its brokerage competitors? Why has Edward Jones performed so well for so long?

2. Can Edward Jones take advantage of the recent crisis I the brokerage business? What should it change in order to capitalize on the opportunities?

3. Are there flaws in Edward Jones strategy? What, if anything, should it change to remedy those flaws?

4. What do we learn from this case about strategy in financial services?

Case: Asahi Breweries, Ltd.

1. Why did Kirin become so dominant in Japan’s industry reading a market share of over 60%? What competitive advantages resulted from this dominant position and how sustainable were they?

2. What specifically did Messrs. Mirai and Higuch bring to Asahi? How would you characterize their policies, behavior, and contributions?

3. How and why did Asahi double its market share?

4. What will the Japanese beer market look like in terms of product segments in the future? What alternate scenarios are plausible and what are their respective implications for the competing firms? In light of your own assessment as to the future evolution of the industry, would you recommend to Mr. Higuchi that he pursue his strategic plans?

Case: Dogfight over Europe: Ryanair (A)

1. What is your assessment of Ryanair’s launch strategy?

2. How do you expect Aer Lingus and British Airways to respond? Why>

3. How costly would it be for Aer Lingus and British Airways to retaliate against Ryanair’s launch rather than accommodate it?

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4. Ca the Ryan brothers make money at the I￡98 fare they propose?

Case: Walt Disney Co.: The Entertainment King

1. How did Disney achieve its status as the largest entertainment conglomerate?

2. How did Disney explore its synergy of entertainment conglomerate?

3. How should Disney maintain its goal of growth and profitability?

Case: The Walt Disney Company and Pixar

1. Which is greater: the value of Pixar and Disney in an exclusive relationship, or the sum of the value that each could create if they operated independently of one another or were allowed to form relationships with other companies? Why?

2. Assuming that Pixar and Disney are more valuable in an exclusive relationship, can that value be realized through a new contract? Or is common ownership required (i.e., must Disney acquire Pixar)?

3. If Disney does acquire Pixar, how should Bob Iger and his team organize and manage the combined entity? What challenges do you foresee, and how would you meet them?

Case: Haier: Taking a Chinese Company Global

1. Why was Haier so successful in China?

2. Was Haier’s decision to globalize into developed markets early on a good strategy?

3. Can Haier build on its success in niche products to become a dominant global brand in high-end white goods?

4. Is Haier’s “three thirds” strategy a viable or wise approach?

Case: Globalization at Komatsu

1. Describe the process Komatsu undertook to transform itself from a local company in Japan into a global giant in the earth moving equipment industry.

2. What are the sources of Komatsu’s success? What are Komatsu’s competitive advantages?

CAPABILITY DEVELOPMENT

01. 領導能力與團隊精神 (Leadership and teamwork skills) 3

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02. 培養管理專業能力 (Cultivate professional management ability) 5

03. 啟發創新力 (Inspire Innovation) 2

04. 建立全球化觀點 (Establish a global perspective) 5

05. 發展執行力 (Develop implementation ability) 4

06. 倫理道德觀念 (Ethical and moral integrity) 2

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Evaluation Criterion of Case Presentation

Date of Submission:

Presentation Case: Group #:

Criterion Description Weight Score Comments

Structure/

Organization

Information presented in logical sequence that audience can follow

10%

Content Demonstrate full knowledge of the case under investigation with satisfactory explanation and elaboration

30%

Issues and Analysis

Identification of, analysis of issues, presentation of solution/synthesis

20%

Presentation skill, Handle Q&A

Delivery, tone and voice, and visual aids, Generate discussions, response to queries.

10%

Command of Knowledge

Demonstrate good command of knowledge learned from this course and elsewhere.

30%

Group Members and individual contribution (total: 100%):

Member ID No. _________ Name _________ _____Contribution_ __

1. __ ________________ _______

2. _ _ ______________ _________

3. ____________ ___________

4. ____________ ___________

5. ____________ ___________

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6. ____________ ___________

7. ____________ ___________

Evaluation Criterion of Case Written Report

Date of Submission:

Title: Group #:

Criterion Description Weight Score Comments

Context and background information/

relevance

Why of this case. How does this case relate to course materials.

10%

Content Case is informative and rich in learning material. Incidents are interesting and realistically portrayed

30%

Writing Writing, free of errors, format/organization, information used

10%

Analysis Identification of issues, Analysis of issues, synthesis/solution,

30%

Application Application of knowledge learned from this course and elsewhere.

20%

Group Members and individual contribution (total: 100%):

Member ID No. _________ Name _________ _____Contribution_ __

8. __ ________________ _______

9. _ _ ______________ _________

10. ____________ ___________

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11. ____________ ___________

12. ____________ ___________

13. ____________ ___________

14. ____________ ___________

ASSURANCE OF LEARNING

Adherence to Mission

■ Technology 科技 ■ Globalization國際

■Innovation 創新 ■Humanity 人文

Adherence to Program Learning Goals

After completing this course, students are expected to demonstrate a good grip of key terminology in the strategy literature, a skill in analyzing a case from a strategic perspective, ability in independent study of a company’s strategy and its environment. Meanwhile, students will be more confident in presentation and handling questions.

Pedagogical Methodologies

■ Lecture ■e-Learning

■ Study Group Seminar

■ Case Study Internship

■ Project Independent Learning

Role-Playing Seminar

Theater Learning Others

Student Abilities Enhancement

Quantitative analysis 數量分析能力 ■ Sympathy 同理心

■Theory Development and Conceptual Thinking 邏輯思考分析

■Teamwork 團隊合作

■Strategic Thinking 策略性思考 ■Acceptance of Others 接受意見

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■Critical Thinking 評論性思考 ■Confidence 自信心

Quick Thinking 敏捷性思考 ■Self—management 自我管理

Flexibility 彈性反應與適應力 ■ Professional Knowledge 專業知識

■ Creativity 創造力 ■ Others: Concept mapping____

其他能力:______________________

Persistency 堅持力 Others: ________________________

其他能力:______________________

■ Communication 溝通表達能力 Others: ________________________

其他能力:______________________

■ Comprehension Ability 聆聽能力 Others: ________________________

其他能力:______________________

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