Strategic Management - Dr. C. Gopinath Suffolk University
Course Overview
The Strategic Management course provides an overview of the field of action in which executives must operate and make decisions. The corporate environment is an uncertain, highly competitive world, based primarily on the player's ability to fathom and calculate the risks. Their decisions sometime are on long shots and at other times on the favorites, but always on the prospects of gains versus losses in the long run. In summary, students will examine the complexity of business management and the indiscriminate nature business competition.
The Strategic Management class is intended to be a challenging Capstone®; course for a business major. It is first and foremost a course that requires the student to think conceptually about the corporation's long-term ability to manage success. The course centers around the theme that a company achieves sustained success and growth only if it's managers develop, and continuously revise, an action-oriented strategic plan, and implement the plan with proficiency and a drive toward excellence. In this class we will stress how and why a well-formulated, well-executed strategy produces good performance.
In studying the task of managing strategy, students will be required to integrate much of the knowledge that they have gained in their other business courses. This is a conceptual "big picture" course, requiring traits that may make it a truly different kind of course from other business courses. The problem and issues of strategy formulation and implementation cover the whole spectrum of business and management. Many variables and situational factors must be dealt with simultaneously. Weighing the pros and cons of strategy entails a total enterprise perspective and a skill of judging how all of the relevant factors add up, and will impact the firm in a highly unpredictable future.
Strategic Management is designed to make the student aware of the nature of policies, their impact on the firm, and the differences in management approaches that account for the rise and fall and the success or failure of business firms. Business Firms come and go with lightening speed. Some grow and prosper rapidly and equally rapidly collapse. Other corporations seem to be able to remain in business over long periods of years but never or only rarely gain both large sales and profits. Still others in the same industry seem to do well, both in sales and profit, despite the vagaries of the economic climate, general business conditions, and competition. What is it that makes the difference between success and failure of business firms?
The student can use the knowledge he/she gains in their Strategic Management as a vehicle by which to integrate the knowledge of all previous courses. In particular, he/she can learn to relate the separate disciplines (Marketing, Accounting, Finance, Economics, etc.) to a given problem. He/she will learn the systems approach to business analysis and problem solving. In addition, they will learn to realize that a decision made by a manager is likely to affect every other department because they are so closely interrelated. For example, a marketing decision is likely to impact production, finance, engineering, personnel, etc. The whole business is a single entity comparable to an orchestra in which various groups must blend together.
Course Objectives
Strategic Management provides the opportunity to apply the knowledge acquired in the functional areas of your Business Degree program to advanced, real-world situations, through the utilization of the case method, Business Plan, Personal Portfolio, etc. The design of the course will permit you to learn to manage the practical affairs of business by using the following process:
- Study or review the fundamental structure and principles of business operations in the changing complex global environment.
- To provide an understanding of the general management perspective, tasks and roles in formulating and executing the corporate strategy.
- Develop a conceptual understanding of the elements of corporate strategy: mission, objectives, and plans. Outline the major concepts and steps involved in formulating corporate strategy.
- Develop a systematic and thorough approach to the analysis and solution of complex business problems.
- To develop the decision-making skills necessary to solve complex problems when lacking complete information.
- To help the student improve his/her analytical abilities and professional skills.
- To develop the student's communication skill, oral presentations, and writing ability.
Required Materials
Capstone®; : Team Member Guide
Laptop Computer
Computer Simulation
Your team is in control of a 100 million-dollar firm. Your team will manage the firm by entering strategic decisions into an interactive computer simulation. Over eight rounds (8 years), you will discover the strategic implications of cross-functional coordination between Research and Development, Marketing, Production, Human Resources, and Finance. You will quickly learn the value of strategic planning and execution as your team's competitive position is determined by the set of decisions entered in each round.
Team Assignments
The class members will be divided into teams of 4 or 5 players per team. The team will form a "company" that will manage a specific firm within the computer simulation program, Capstone®; . Each team will compete against the other class teams in a multi-round sequence of business decisions.
In general, the probability that a team will win is dependent upon the following factors:
- The ability to organize an effective team unit.
- The extent to which the team understands the "cause and effect' relationships in the specific business environment in which they are operating.
- The team's ability to formulate a well-defined and relevant strategic plan and then execute that plan within the time frame of the business model.
GENERAL COURSE POLICES
Habits of good work behavior should be formed early in your professional development. Employers and customers will form opinions of your work product/services based on your attention to details and professional courtesy. Arriving ahead of time, being prepared, and respectful of others are all behaviors that speak volumes to those who will be evaluating your professional career.
In my thirty-five (plus) years of work experience, I have found that customers and employers place more weight on professional courtesy and maturity, than technical abilities. As one who has often been responsible for hiring and firing employees, I believe the most important qualities of an employee are good work habits, cooperative attitude, and team building skills. Technical skills are easily taught on the job, but professional maturity is the personal quality you bring to the job.
Therefore, it is important that you arrive on time, and depart only after the class is complete. STUDENTS WILL BE PENALIZED IF THEY DISRUPT THE CLASS; THIS INCLUDES ARRIVING LATE AND LEAVING EARLY. You should always be attentive and prepared for class. You should show your classmates and the instructor courtesy, this includes not talking (or whispering) during class lectures, no writing messages back and forth, and no interrupting your classmates or professor.
- LATE ASSIGNMENTS: Late assignments will only be accepted if there is a documented family emergency. If for any reason, you miss a class you may deliver, fax, or e-mail the assignment to the professor in time for it to reach her office/home before the due date. If you miss a class, you are still responsible for all announcements made during class. NO EXCEPTIONS.
- ATTENDANCE: Attendance will be taken every class. The campus policies for Class Attendance will be followed (see the PLNU catalog for campus policy). If you miss more than a half-hour of the class (late arrival or early departure included), that will be considered an absence for that entire class. If this semester has many personal emergencies or illness that require you to miss class, then you will need to drop the course and take it at a later time. You are responsible for all announcements made during the class; even those made during your absence.
- MAKE-UP ASSIGNMENTS: There will be no make-up exams or assignments. NO EXCEPTIONS.
- ETHICAL VIOLATIONS: Anyone found cheating, plagiarizing, or any other form of academic dishonesty, will be given a failing grade for the assignment, and in most cases a failing grade for the class. There will be NO EXCEPTIONS. Please refer to the PLNU catalog for the campus policy.
- SPECIAL ACADEMIC ACCOMMODATIONS: All students are expected to meet the standards for this course as set by the professor. However, students with learning disabilities who may need accommodations should discuss options with the professor during the first two weeks of class and provide approved documentation and verification of need. The Academic Support Center is available to students for a variety of tutorial needs.
GRADING SYSTEM
Each student's grade will be determined by the following factors:
Team Evaluation (15%): each team member will be required to evaluate the performance of his/her colleagues on the team, using the following criteria:
- Attendance and participation at all team meetings,
- The quality of contributed suggestions, conclusions, and decisions,
- Teamwork, cooperation, meeting team deadlines, and analytical contribution.
Team Performance (30%):
Your oral performances and written assignments will be evaluated on professional appearance, presentation, as well as quality of intellectual effort. At all times you should demonstrate professionalism in your work habits
Teams will be evaluated on analysis, evidence of learning, organization and thoroughness. Your oral and written assignments should demonstrate that you have wrestled with the key issues in the course and texts, and are learning to think analytically about the critical issues. Written and oral assignments should be logically presented, adequately supported, and carefully reasoned. The team's performance will be evaluated on:
- The team's final performance in the key measurement variables,
- The team's presentation of their strategy, and the logical concepts to develop their strategic plans and the intelligent implementation of those plans, and
- The team's written presentation and oral discussion of key terms and concepts (i.e. Profit, Market share, ROA, ROE, ROS, turnover, stock price).
Class attendance and participation (10%):
Students will be evaluated on their participation in the classroom discussions. Students are expected to attend all classes, and will be responsible for all matters/ assignments covered during the course discussions.
Non-cooperative or argumentative students will be asked to meet with the professor during office hours to resolve his/her concerns. If these concerns cannot be resolved, then the student will be advised that his/her lack of cooperation will impact the course grade.
MANDATORY ETS Exam (5%):
Students will receive the national ETS Exam scheduled 11/7/01 (if you do not attend this exam this portion of the Grade will be "0"). Your grade for this portion of the Strategy course will correspond to your performance on the ETS Exam. There will be no make-up for this National exam.
The Team's Final Report (20%): each team will be required to write a final report and make an oral presentation that addresses the two very specific questions below.
- What were the factors that contributed and detracted from the team's (company's) overall performance and competitive position at the conclusion of the final round?
- Given the team's (company's) position at the conclusion of the final round, and the competitive environment in which we are operating, what would you do over the next 3-5 years to significantly improve your performance.
The reports will be presented at the end of the semester. It would be prudent to begin jotting notes and formulating some ideas throughout the course that may contribute to your final presentation.
All assignments will be required to be upper-division college level work. This means, assignments that do not meet these criteria will be returned without a grade. You will have exactly one week to re-do the assignment. You will carry an "incomplete" on the assignment for a week, and a new grade will be assigned to the revised work without a penalty. If the student does not re-do the assignment within the required time, then it will turn to a "D" or "F" depending on the level of quality on the first attempt of the assignment.
Final Exam (20%): Students will receive a comprehensive final exam during the finals week. Students will be given a handout prior to the exam period that will outline the content of the exam.
Conduct of course
- Monday
a. Students will review their performance from the previous week's round. Each team will critique their company's competitive position.
b. Class discussion on current strategic environment of corporations. These discussions will be based on articles from business periodicals. - Wednesday
a. Lecture on key strategic concepts.
b. Team presentations on terms, strategic plans, etc. - Friday
a. Class devoted to Capstone®; Simulation. Students are required to bring laptops.
b. Attendance is mandatory.
Bill Gates' 11 Rules you did not Learn in School
- Life is not fair; get used to it.
- The world won't care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.
- You will NOT make $40,000 a year right out of high school. You won't be a vice president with a car phone, until you earn both.
- If you think your teacher is tough; wait until you get a boss. He doesn't have tenure.
- Flipping burgers is not beneath your dignity. Your grandparents had a different word for burger flipping; they called it opportunity.
- If you mess up, it's not your parents' fault, so don't whine about your mistakes, learn from them.
- Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk how cool you are. So before you save the rain forest from the parasites of your parents' generation, try "delousing" the closet in your own room.
- Your school may have done away with winners and losers, but life has not. In some schools they have abolished failing grades; they'll give you as many times as you want to get the right answer. This does not bear the slightest resemblance to ANYTHING in real life.
- Life is not divided into semesters. You do not get summers off and very few employers are interested in helping you find yourself. Do that on your own time.
- Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.
- Be nice to nerds. Chances are you will end up working for one.
Week of
Monday
Wednesday
Friday
August 27 - 31
Syllabus and introductions.
Overview of the Capstone®; Simulation.
All teams present written and oral discussions on Key Terms (Strategy, Mission, Objectives, Goals).
September 3- 7
No School
All Teams Present written and oral discussion on Key Terms (Profit, Market share, ROA, and ROS).
Practice round # 1 uploaded
Last day to add class
September 10- 14
Review Practice Round # 1
LECTURE: Industry analysis
All Teams present written and oral discussion on Key Terms (ROE, Turnover, and Stock Price)
Practice round # 2 uploaded
September 17 - 21
Review Practice Round # 2
LECTURE: External Environment, Threats & Opportunity
All Teams present written and oral discussion on Key Terms (Financial Ratios).
Practice Round # 3 uploaded
September 24 - 28
Practice Round # 4 uploaded
Teams A, & B present their strategy.
Teams C & D present their strategy.
Round # 1 Uploaded
Week of
Monday
Wednesday
Friday
Oct 1-5
Teams present examples of current business trends from business publications.
LECTURE: Internal Analysis, Strengths and Weaknesses
Round # 2 uploaded
October 8 - 12
Teams present examples of current business trends from business publications.
Marketing Review for ETS by Dr. Harry Watkins
Round # 3 Uploaded LECTURE: Financial, GAP and SWOT analysis
October 15 - 19
Accounting Review for ETS Exam by Prof. Gene Shea
Finance Review for ETS Exam by Dr. McEliece
No School
October 22 - 26
International Review for ETS Exam by Dr. Bailey
Management Review for ETS Exam by Dr. Schooling
Round # 4 Uploaded
Mandatory ETS Exam
Oct 29 - Nov 2
Teams A, B, C, D & E present their revised strategy.
LECTURE: Formulating a Business Strategy
Round # 5 Uploaded
Week of
Monday
Wednesday
Friday
November 5- 9
LECTURE: Generic Strategies
Mid-term Grades available
Round # 6 Uploaded
Last Day to drop class
Nov 12- 16
Teams present examples of current business trends from business publications.
LECTURE: Competitive advantage within an industry.
Round # 7 Uploaded
Nov 19- 23
LECTURE: Global strategy and MNC management.
No school
No School
Nov 26 - 30
Teams present examples of current business trends from business publications.
LECTURE: Strategy Implementation
Round # 8 Uploaded
December 3- 7
Teams evaluate their final round performance
LECTURE: Strategy Evaluation
Team member performance Evaluations due
December 10-14
Team A & B present their final report.
Team C & D present their final report.
Team E presents its final report. Review for the Final Exam.
* Assignment due * Capstone®; Round Assignments * No School
Hill & Jones, Strategic Management, Houghton Mifflin Company, 2001.
Team B
Thompson & Strickland, Strategic Management: Concepts & Cases, Irwin, 1996.
Team C
Wright, Pringle & Kroll, Strategic Management: Text and Cases, Allyn and Bacon, 1992.
Team D
Joe G. Thomas, Strategic Management: Concepts, Practice, and Cases, Harper & Row, 1988.
Zach Lydon
Thompson & Strickland, Strategic Management: Concepts & Cases, Irwin, 1998.
Team's Final Report (20 % overall grade)
Your team is to write a final report and make an oral presentation that addresses the two very specific questions below.
1. What were the factors that contributed and detracted from the team's (company's) overall performance and competitive position at the conclusion of the final round?
- Look at each round and ANALYZE...ANALYZE...ANALYZE
- What did you learn, and what adjustments did your company make throughout the simulation.
- What was your competitive strength/weakness
- How did your strategy change over time
- Support your answers with data analysis
2. Given the team's (company's) position at the conclusion of the final round, and the competitive environment in which we are operating, what would you do over the next 3-5 years to significantly improve your performance.
- Based on your company's performance develop a strategy for the future. Include a discussion of each step of the strategic management process (analysis, formulation, implementation, evaluation).
- Do you have the right management team in place?
- Does your company have the right structure?
- How are you going to implement your strategy?
The reports will be presented:
December 10: Teams A&B
December 12: Teams C&D
It would be prudent to begin jotting notes and formulating some ideas throughout the course that may contribute to your final presentation.
All assignments will be required to be upper-division college level work
Typed (15-20 pages) double space
Proper footnotes
Appendices with tabs