Strategic Analysis Course - Dr. Craig Watters DePaul University
COURSE DESCRIPTION The "Strategic Analysis for Competing Globally" course integrates various fields to help the student develop a unified understanding of business planning and strategy. In addition, the course bridges the gulf between theoretical class work and the business world. The effective manager must understand a wide range of technical and social relationships and be able to integrate them within the cost, performance, and time constraints of her/his area of responsibility. To learn and practice strategic planning skills, students will use a computer-based management simulation (Capstone®; Business Simulation). It allows them to test alternative ways to operate a business in a competitive environment. The advantage: students incur no costs and have no risk of implementation. The course examines the critical factors involved in the strategic management process. Topics covered include: COURSE OBJECTIVES The objectives of the course are to: COURSE PROCEDURE Most real-world, strategic decisions, especially crucial ones, are made after consultation with key executives and colleagues in an atmosphere of committee deliberations and discussion. To simulate this procedure, each student has the opportunity to select his/her own team. Team work is an important aspect of this course. Students who, for personal or job-related reasons, are unable to work in teams are advised to consider this factor carefully. The course involves a considerable number of team meetings, and teams hold most of their meetings outside the classroom. Each team must make decisions about various aspects of a simulated company for a given period of "simulated time". Teams will meet regularly to analyze the strategic position of their company and to discuss issues, problems, etc. The results for each company are returned every week to the respective group. The game is played over several simulated periods. Each firm's objectives are achieved systematically and successfully by considering and applying concepts previously developed in lectures. To evaluate the firm's performance, criteria are examined - i.e., Stock Price, ROE, Market Share and Profits. Each team must give weights to the various performance measures. The most weight that can be assigned to any one performance measure is 50%; the least is 0%; and the total must equal 100%. The company will be evaluated using these performance weights. Each team is required: METHOD OF INSTRUCTION GRADING I have a simple set of criteria by which grades will be determined. Hopefully these rules do not distract from the real meat of the course. I start with the assumption that everyone is going to give at least a reasonable effort. Therefore, everyone starts with a "B" minus (B-). If according to your teammates, you do not give a reasonable effort, your grade could drop to a "C". There will be a peer review sheet that each student will be asked to fill out, on their teammates, distributed toward the end of the class. Satisfactory performance (being adequately prepared for team discussions, being a functional team member, etc.) will garner you 70% of your grade. As stated above this will be sufficient for a B-. To obtain a higher grade there are two other exercises. One of these exercises is mandatory. During class, you and a teammate of your choice, will make a brief eight minute "Current Strategy" presentation. This will be worth up to an additional twelve (12) percent. Thus, potentially elevating your grade to a "B" or even a "B+". The Current Strategy presentation will be on a topic of your choice (yours and your partner's). You will be required to review a current business strategy issue being discussed in the popular press and postulate either, how the situation will be resolved or what your duet would do if you were in a leadership position. I will discuss this further in the class. You also can elevate your grade by submitting a paper, again on a strategic, or related issue, of your choice. The paper will be no more than ten pages and must be submitted (by email or fax) by a date to be given later. This paper will be worth up to an additional eighteen (18) percent. Again, I will further discuss this paper in class. Note: You must submit a paper to receive a grade higher than a "B+". The point distribution then, looks like this: Performance in the simulation 70% Current Strategy Presentation& 12% Strategy Paper 18% Total 100% If your grade is marginal, it will be influenced in a positive or negative direction by: quality of the final team presentation to the board of directors and class discussion. Team Presentation Each team must prepare a final presentation of their company and present it to the class as if presenting it to the board of directors. Presentations can be no more than 20 minutes, and this will be strictly enforced. A suggested outline will be provided to teams. Teams are encouraged to use presentation packages like Power Point and to prepare hard copies with notes for the class. Class Discussion Students' involvement in class discussions is critical to learning. The free and candid exchange of views will be encouraged and rewarded. Just as you gain new knowledge from readings, the lectures, and the team meetings, you also will learn from the discussions and arguments that take place in the classroom. Students can significantly contribute to this learning process by getting actively involved in the class discussion. Peer Evaluation Members of each team will evaluate teammate's performance on a five-point scale, by: (a) attendance at team meetings, (b) willingness to cooperate, and ( c) importance of contributions. On a second page of the evaluation form, students should make additional comments and/or explanations as to why they assigned their team members the numerical grade. Peer evaluation is conducted after the presentation to the board of directors. The objective of the confidential peer evaluation is to remind all team members that identical grades are not guaranteed. The instructor will accept team evaluations at face value but will use his own discretion in judging the objectivity of the evaluations. If significant problems are detected there may be further questions asked of the team. The nature of this course requires class participation. Unless a good reason exists, all students are expected to attend class regularly. Plagiarism: Students in this course, as well as all courses in which independent research and writing play a vital part of the course requirements, should be aware of the strong sanctions against plagiarism as stated in the current Bulletin/Student Handbook. If proven, a charge of plagiarism could result in an automatic "F" in the course and possible expulsion. If you have any questions or doubts about what plagiarism entails or how to properly acknowledge source materials and the work of others be sure toconsult me. MATERIALS Required Readings: Suggested Readings: Pearce II, J.A., Robinson, R.B., Formulation, Implementation, and Control of Competitive Strategy, 5thed., Homewood: Irwin, 1994. Kanter, R.M., When Giants Learn to Dance: The Post-Entrepreneurial Revolution in Strategy, Management, and Careers, New York: Simon and Schuster, 1989. Porter, M.E., The Competitive Advantage of Nations, New York: Free Press, 1990. Bennet Stewart III, G., The Quest for Value, USA: Harper Collins, 1991. Morgan, Gareth, Images of Organization, Newbury Park, CA: Sage Publications, 1986. Geisel, T.S. & A.S., Oh, The Places You'll Go! New York, Harper Collins, 1990. COURSE OUTLINE Following, you will find the layout of this class, by week. As class time is tight, please treat it respect. An absence will be viewed very seriously. It will be difficult for you to pass with two absences. If you expect that to happen you should register in another section. Class Content Suggested Materials Class 1: Game Introduction --Introduce the game using the Capstone®; Introductionslide show. --Introduce the Situation analysis and assign it as first week's homework for all teams. --Assign students to teams. --Student Guide, Chapters 1-7 should be assigned as reading. --Student Guide, Chapter 8: Situation Analysis. Class 2: Situation Analysis and Practice Round --Discuss results of Situation Analysis. --Review Capstone®; software (Capstone.xls). --Assign deadline for completion of practice round decisions, by all teams. --Ensure all teams are aware of procedure for uploading decisions and downloading results/starting conditions (explained in Chapter 5 of the Team Member Guide). --Ensure all teams have downloaded starting conditionsbefore making their set of practice round conditions. --Capstone®; Software (Capstone.xls). Class 3: Practice Round Review, Strategic Planning --Review results of practice round in class and then reset the web site to the beginning. --Present Overview of Strategic Planning slide show. --Present Strategic Planning and Financial Analysis Workbook slide show. This workbook, when completed by the teams, allows them to step through the development of a simple one page Mission Statement. However, professors may have an alternative preferred format, which they should substitute. --Set deadline for first set of real decisions to be uploaded to the web site. --In reviewing the practice round results, the professor will make their first use of the Capstone®; Instructor Package (CapDebrief.xls). Class 4: Review of Round 1 and Financial Statement Analysis --Review round one results. --Review financial statement analysis making use of the Financial Statement Analysis slide show. --Discuss and compare financial reports for all teams, using page 3 of the Capstone®; Courier. --Set deadline for round two decisions. --Discuss round one results using Capstone®; Instructor Package (CapDebrief.xls). --Financial Statement Analysis slide show (finrepln.ppt). --Hard copy of Financial Statement Analysis (included in the Teacher's Binder), for each student. --Capstone®; Courier for each student (printed out by students or by professor using Instructor Package. Class 5: Review of Round 2, Ratio Analysis and Competitor Analysis --Review of round two results. --Discuss ratio analysis and the selection of financial benchmarks, against which individual teams wish to be evaluated, using Ratio Analysis slide show. --Undertake in depth review of each team's performance to date, have class mates postulate each team's strategy. --Professor may wish to make their own presentation on Competitor Intelligence at this time. --Handout copies of Scoring Sheet (downloadable from the web site) have each team complete for following week. --Set deadline for round three decisions. --Discuss round two results using Capstone®; Instructor Package (CapDebrief.xls). --Ratio Analysis slide show (Rationln.ppt). --Scoring Sheet. Class 6: Review of Round 3 and Strategic Discourse --Review of round three results. --General discussion on the nature of strategic discourse inside organizations. Topics may include: how strategy gets translated into tactics, different forms discourse may take (training, communication, measurement systems, reward systems and so on), examples of functional and dysfunctional discourse and ideal organizations. --Collect Scoring Sheets. --Set deadline for round four decisions. --Discuss round three results using Capstone®; Instructor Package (CapDebrief.xls). --Weights as selected on the Scoring Sheets should be input into the Instructor Package "Scoring" section. Class 7: Review of Round 4 and Introduction to Labor Negotiation --Review of round four results. --Introduction to Labor negotiation using Introduction to Labor slide show (Cap Labor.ppt). --Set deadline for round five decisions. --Discuss round four results using Capstone®; Instructor Package (Capsim.xls). --Introduction to Labor slide show. --Hard copy of Introduction to Labor slides (included in the Teacher's Binder), for each student. Class 8: Review of Round 5 and other topics at professor's discretion --Review of round five results. --At this time the professor may wish to pursue a number of different topics depending on course objectives and student level. Potential topics may include, Scenario Planning (useful reference "The Art of the Long View"), Common mistakes in Strategy, Shareholder Value, International Aspects of Strategy, Technology and Strategy, Culture and Strategy, Writing Business Plans, Functional Coordination and The Role of Organizations. --Assignments at this stage may also vary widely. Papers for individuals or teams may be assigned on a number of topics including strategic reviews of particular firms or even, the development of an in depth business plan by student(s). --It may also be appropriate to assign students presentation topics to be made in subsequent weeks. Again the topics selected would depend on course objectives and student level. --Set deadline for round six decisions. --Discuss round five results using Capstone®; Instructor Package (CapDebrief.xls). Class 9: Review of Round 6 and other topics --Review of round six results. --Topics and activities selected by professor. --Set deadline for round seven decisions. --Discuss round six results using Capstone®; Instructor Package (CapDebrief.xls). Class 10: Review of Round 7 and introduction to Stockholder's Debrief presentations. --Review of round seven results. --Display or handout the five sheets that comprise the Stockholder's Debrief (All five sheets are included in the "Worksheets and Reports" tab of the Teacher's binder. --Note that one of the five worksheets requires the students to project their results for the last round, they should therefore not be given final results prior to the debrief. --Set deadline for round eight results. --Discuss round seven results using Capstone®; Instructor Package (CapDebrief.xls). -Hard copies of the five worksheets for the Stockholder's Debrief. Class 11: Stockholder's Debrief --Student teams to present, some part of the final grade should be attached to this presentation. Typically teams will need between twelve and twenty five minutes for their presentations. Thus, two weeks may need to be dedicated to this activity. Class 12: Continuation of Stockholder's Debrief and Final Wrap up --Any student presentations not completed previously. --Round eight review and discussion. --Final Debrief. --For both the round eight review and the final wrap up, theInstructor Package will be needed. Included in the Instructor Package are a series of slides that summarize each team's financial results over the entire game. Also included are slides that score each team's performance making use of the previously input weighting criteria.