Business Policy - Dr. William G. Forgang Mt. St. Mary's College

This course is the Capstone^®; to the business major. Through readings, case studies, and a computer- based simulation, the student integrates the functional areas of business and engages in strategy- based decision- making.

Objectives

The successful student:

• Develops competencies in strategic planning
• Understands the linkage between a firm's strategy and individual operating decisions
• Understands cause - effect relationship in functional area operations
• Applies theoretical knowledge from each of the functional areas of business study to policy / strategy problems
• Interprets firm and industry data to guide decision making
• Works effectively in teams
• Engages in quantitative decision making

Develops business writing and speaking skills. Materials in Bookstore

Dr. William G. Forgang. Competitive Strategy and Leadership: A Guide to Superior Performance ( New York: Rowman and Littlefield, Inc.2001 )

Capsim Simulation: Guide Book

Students must purchase the Capsim Manual / Disk and be registered with Capsim to be enrolled in the course.

Technical Support

Technical questions regarding the operations of the simulation should be directed to Capstone^®; s support personnel:

1-888-472-7554 (between 9 a.m. and 9 p, m. CST on business days)

Course Requirements and Grades

Task Due Date % Weight

Market Size / Drift Rates January 24 5%

Organizational Memo January 29 10%

Mission & Strategy February 5 10%

De-Brief Round #1 February 14 5%

De-Brief Round #2 February 26 5%

De-Brief Round #3 March 12 5%

De-Brief Round #4 March 19 5%

De-Brief Round #5 March 26 5%

De-Brief Round #6 April 11 5%

De-Brief Round #7 April 23 5%

Presentation May 2 10%

Final De-Brief Final Exam Day 15%

Participation all semester 10%

Peer Evaluation end of semester 5%

Policies and Practices

Students are expected to attend all classes!!!

Students are expected to fully cooperate with their teams!!!!!

Students who do not work effectively with their team will be assigned an (F).

Simulation decisions must be uploaded by 1:30 p.m. on the date assigned.

Papers must be professionally presented.

Failure to up-load on schedule results in an (F) grade for the class!!!

Assignments

De-Briefs #1-7:

Following each round of the simulation, each team prepares a briefing memo as if to the firm's Board of Directors. 

In this memo, you are to:

• Review the firm's long term strategy
• Comment upon the prior period's decisions, expected outcomes, and actual results
• Evaluate the outcomes of the prior period's decisions - based on your strategy
• Refer to performance measurements
• Cite impending problems, perhaps to include:
• The firm's financials - use standard ratio analysis
• Competitive threats
• Impending problems
• Describe general decisions to be made next period and the expected outcomes
• Justify all capital outlays with a capital budget Final-De-Brief:
• Following completion of the simulation, prepare a memo as if to the firm's Board of Directors. This memo serves several purposes:
• De-brief of round #8
• Assess the team's work over the entire eight rounds
• Wise decisions and mistakes

Discuss lessons leaned Organizational Memo:

This brief paper (3 - 5 pages) summarizes the organizational structure of your firm. Prepare the memo as if to the firm's Board of Directors.

Identify which employee:

• Is responsible for what tasks (Products? Functions?)
• Individuals may hold several positions in the firm. Show functions
• Who reports to whom and who is responsible for final decisions
• How each team member will be evaluated
• This is the basis of the peer evaluation at the end of the semester
• Draw an organizational chart. Designate a President.
• Discuss the logic of the individual assignments
• Establish control and supervisions systems / penalties. Each team must have a weighted performance evaluation system Market Size and Drift Rates Memo:
  Market Size
  
• For each of your products, calculate the size of the market in each of the 8 rounds. Calculate your sales, assuming your market share does not change.
• Identify periods when capital expansion projects must be started. How large? Answer by product. Drift Rates
• For each product, estimate the "sweet spot" for each year. (See manual)
• Will you be able to upgrade each product to the sweet spot each year?
• Is it wiser to let some products drift between segments?
• Will new products be needed?

When will new products be needed? What specifications? When should the work begin? Mission and Strategy Memo:

This 2 - 3 page is prepared as if to the Board of Directors.

• Prepare a mission statement for the firm
• Define the firm's competitive strategy
• Discuss decision path to be followed
• Identify performance measures to monitor execution of the strategy
• Weighted goals
• Company Presidents are to meet briefly and agree upon three goals and their relative weights. Goals may include:
• Ending Stock Price
• Cumulative Profit
• End Period Profit
• Market Share
• Return on Assets
• Return on Equity

These weights will determine the "winner of the simulation" at the end of the semester Peer Performance Evaluation

Students evaluate each of their teammates. Use the performance evaluation criteria developed in the Organizational Memo.

The memo should be written as an annual evaluation. 
Class Schedule

Final Exam Day: Final De-Brief + Peer Evaluation Memo.