Business Policy & Strategic Management - Professor Frank Schultz Michigan State University
Required Materials:
Strategic Management: Competitiveness and Globalization: Concepts (5th ed.)
Note: This is the CONCEPTS only version of the text, not the Concepts AND Cases version
Hitt, Ireland and Hoskisson, Thompson - SouthWestern College Publishing
ISBN: 0-324-17154-4
Coursepack : MGT 409 Strategic Management Cases
Hitt, Ireland and Hoskission, Thompson - SouthWestern College Publishing
ISBN: 0-324-26813-0
Capstone Business Simulation: Team Member Guide (Provided in class on first day of class)
On line registration ($39 - wholesale) at www.capsim.com
Course Overview:
This course in Strategic Management is designed to encourage students to apply knowledge they have acquired in previous coursework to real life management issues. In particular, students will be introduced to issues confronted by upper level managers who are concerned about the overall performance of an entire firm or of a major business unit. Students will be exposed to both the current theory and practice of Strategic Management. Particular emphasis will be placed on how Strategic Management concepts can aid top management in resolving the unique performance issues they face.
Course Grading Criteria:
Midterm 20%
Class Participation 20%
Capstone Business Simulation 35%
Capstone Simulation Performance (10%)
Capstone Stockholder First Presentation (10%)
Capstone Stockholder Second Presentation (10%)
Capstone Investment Performance (5%)
Final Exam 25%
Midterm (20% of course grade) and Final (25%) Exams
The midterm and final exams are designed to test student's retention and application of course material. They will be multiple choice, essay and/or short answer in format and will cover all the course material (Chapters and Cases) covered to that point in the class. The final exam will be cumulative. The exams will be held in class and will be closed book exams.
Course Grading Criteria (continued):
Class Participation (20% of grade)
This course is well suited to a highly interactive course environment. Your active participation in class is expected. You WILL be called upon in class. For this class, participation is more than attendance. If you attend each class and arrive on time you will only receive a passing grade. To receive a higher grade, you must contribute to the class discussions. You are to challenge yourself, your classmates and your instructor in a constructive fashion so that we all develop a deeper understanding of the management-related issues discussed in class. For each class, you will receive from 0 to 5 points as follows:
2 points - if you attend
3 points - if you say anything
4 or 5 points - depending upon the quality and quantity of comments you make
For each case, you are to be intimately familiar with the details of the case. It will be assumed that you have completed a thorough analysis of the facts of the case and have identified the key problems and potential solutions that exist. While students will be called on at random to answer specific questions related to the assigned case, students are also expected to voluntarily contribute their assessments of case issues.
Class participation grading will be based on a combination of your quality and quantity of contribution. I am most interested in insightful comments. I encourage you to present alternative viable interpretations of the material we are discussing. If you have not been able to prepare a particular case or reading, please let me know prior to class. While this will count against your class participation grade, it will not impact your grade as much as being unprepared when called upon.
Capstone Business Simulation (35% of grade)
Capstone is an Internet/PC-based simulation that has been designed to give teams of students the opportunity to craft strategies, to make business decisions and to be held accountable for the financial performance of those strategies and decisions. In general, simulations offer students the opportunity to come as close as possible to managing a real company and thereby develop an understanding of the challenges encountered when managing a business.
You and your team members will assume the role of the top management team of one of the companies in the industry. Over the eight-year timeframe of the simulation, your team will encounter a range of strategic issues that will force you to integrate your knowledge of accounting, finance, marketing, operations, and strategic management.
Complete details of the simulation are included in the Team Member Guide and online at Capsim.com. Your grade for Capstone (35% of your total course grade) will be based on three criteria: (1) your team's performance in the simulation (10% of course grade), (2) your team's two stockholder presentations (10% each x 2) and (3) the performance of your individual Capstone "investments" (5%).
Capstone Simulation Performance
Ten (10) percent of your course grade will be determined by how well your Capstone company performs relative to the other companies in your industry. We will discuss in class the specific criteria that will be used to evaluate your company's performance.
Capstone Stockholder Presentation
Each of the Capstone teams will be making two Stockholder Presentations. The presentations are designed to give you experience presenting to potential stockholders of an organization. Your goal in the presentation will be to convince investors (your fellow classmates) to invest their money in your company. Your grade will be determined based on how much money you raise relative to your competitors.
Course Grading Criteria (continued):
Capstone Business Simulation (continued)
Capstone Investment Performance
As discussed above, four class periods will be used for Stockholder Presentations during which each team pitches their company. On an individual basis, you will be given $10 million (hypothetically) to invest as you wish in these companies. Your grade for Capstone Investment Performance (5% of your overall course grade) will be based on the appreciation (or depreciation) in value of the original $10 million you invested - determined by the stock price of the companies in which you invested. You will not be allowed to "rebalance" your portfolio and will not be allowed to invest in your own company or industry.
Important Note: from a time commitment standpoint, the Capstone portion of the class is heavily front end loaded. As the course progresses, your team will learn to make decisions more quickly and less time will be required each week. Initially, however, up front time is required to understand the details of the simulation, develop your strategy, and make your initial decisions.
Course Schedule:
Session Date Topic
1 Monday Jan 6 Course Introduction
Chapter One - Strategic Management & Strategic Competitiveness
Capstone Team Formation
2 Wednesday Jan 8 Chapter Two - The External Environment
Capstone Business Simulation Team Member Guide
3 Monday Jan 13 Chapter Two (Continued)
Final Capstone Teams Due
Capstone Registration Complete
4 Wednesday Jan 15 Chapter Three - The Internal Environment
Capstone Online Lessons 1 and 2 Due
Monday Jan 20 NO CLASS - Martin Luther King Day
5 Wednesday Jan 22 Chapter Three (Continued)
6 Monday Jan 27 Chapter Four - Business - Level Strategy
Capstone Practice Year 1 Decisions Due by 9AM
7 Wednesday Jan 29 Case: Nucor Corp. and the U.S. Steel Industry
8 Monday Feb 3 Chapter Four (Continued)
Capstone Mission Statement Due
9 Wednesday Feb 5 Case: SouthWest Airlines, 2002
10 Monday Feb 10 Chapter Five - Competitive Rivalry and Dynamics
Capstone Year 1 Decisions Due by 9AM
11 Wednesday Feb 12 Chapter Six - Corporate Level Strategy
12 Monday Feb 17 Chapter Seven - Acquisition and Restructuring Strategies
Capstone Year 2 Decisions Due by 9AM
13 Wednesday Feb 19 Case: Walt Disney Co.
Course Schedule (continued):
Session Date Topic
14 Monday Feb 24 Capstone Stockholder Presentations
15 Wednesday Feb 26 Capstone Stockholder Presentations
Monday Mar 3 NO CLASS - Spring Break
Wednesday Mar 5 NO CLASS - Spring Break
16 Monday Mar 10 Chapter Seven (Continued)
Midterm Review
Capstone Year 3 Decisions Due by 9AM
17 Wednesday Mar 12 MIDTERM
18 Monday Mar 17 Chapter Eight
International Strategy
Capstone Year 4 Decisions Due by 9AM
19 Wednesday Mar 19 Case: Outback Steakhouse
20 Monday Mar 24 Chapter Nine
Cooperative Strategy
Capstone Year 5 Decisions Due by 9AM
21 Wednesday Mar 26 Case: Circus Circus
22 Monday Mar 31 Chapter Ten
Corporate Governance
Capstone Year 6 Decisions Due by 9AM
23 Wednesday Apr 2 Case: Compaq in Crisis
24 Monday Apr 7 Capstone Presentations
25 Wednesday Apr 9 Capstone Presentations
26 Monday Apr 14 Chapter Eleven
Organizational Structure and Controls
Capstone Year 7 Decisions Due by 9AM
27 Wednesday Apr 16 Chapter Twelve
Strategic Leadership
28 Monday Apr 21 Chapter Twelve (Continued)
Strategic Leadership
Capstone Year 8 Decisions Due by 9AM
29 Wednesday Apr 23 Case: Cisco Systems, Inc.
Final Exam Review