CALIFORNIA STATE UNIVERSITY CHANNEL ISLANDS Martin V. Smith School of Business and Economics Spring Semester, 2014 Information contained in this syllabus, other than that mandated by the University, may be subject to change with advance notice, as deemed appropriate by the instructor. Course: BUS 499, Capstone: Global Strategic Simulation, Section 6, #2471 Time/Location: Tuesday and Thursday, 12:00pm to 1:15pm, Smith Decision Center, Room 1908 Instructor: Jeffrey D. Stone, Ph.D. Contact: Office Hours: email: jeffrey.stone@csuci.edu Monday 11:00 am to 12:00 pm Tuesday 11:00 am to 12:00 pm and 2:00 pm to 3:00 pm and by appointment, Sage Hall 2042. Course Prerequisites: ACT 300, BUS 320, MIS 310, ECON 310 or 329, ECON 311 or 320, English 483, FIN 300, Math 329, MGT 307, MGT 326, MKTG 310 Required Texts: Recommended: Course Overview: Dess, H; Gregory G., G.T. Lumpkin, Alan Eisner and Gerry McNamera. Strategic Management: Creating Competitive Advantages, 6th Ed. Boston: McGraw-Hill Irwin, 2012: ISBN 978-0-07-743956-9 The Business Strategy Game: A Global Simulation, 2013 Edition. http://www.bsgonline.com (all students must purchase) Wall Street Journal, Business Week, Fortune, The Economist. In addition to the regular readings assigned in this course, you are highly encouraged to keep abreast of current events in business and economics by reading at least one of the following materials on a regular basis: Wall Street Journal, Business Week, Fortune, The Economist. This is a required upper division course for the Bachelor of Science in Business. The course is a culminating experience for business a major that attempts to integrate all previous business related material. Students are required to develop comprehensive approaches to business situations. Students analyze cases and create their own businesses via an intensive simulation experience. It is essential for students to understand the interrelated nature of all business disciplines. Also, through intensive group activities, students gain an appreciation of working with others in stressful circumstances. Learning Objectives: Students who successfully complete this will be able to: Course Topics: 1. Make and implement business decisions via a simulation exercise ( 1,5,6) 2. Produce analyses and present analyses orally and in writing to their peers and to a larger audience (1,2,3,5,6) 3. Create effective business plans and clearly describe strategies, goal and objectives (1,2,3,5,6) 4. Summarize orally and in writing the performance of businesses (2,3,5,6) *Aligns with Program Learning Goals for: 1) Critical thinking, 2) Oral communication, 3) Written Communication, 4) Conduct (Ethics), 5) Competencies in discipline, 6) Collaboration Using a simulation game and business case analysis, the course demonstrates the integration of accounting, finance, economics, marketing, production, quantitative analysis and human resource management. As a major focus of the BUS499 Spring 2014, Professor Stone Page 1
course, students work in Teams to identify and resolve problems, and implement plans. The course uses a web-based business simulation to provide students with an experience in business-decision making under uncertainty. Students form teams to develop and implement strategies to operate an ongoing firm in an international environment. Each firm competes in a consumer goods industry against several other firms. Students are responsible for decisions related to product price, quality, production, aggregate planning, marketing and financing. Students are expected to utilize knowledge gained in the business core courses and to apply the appropriate techniques and tools. Students will be dealing with issues related to (but not limited to) the following: Accounting: Application and interpretation of accounting data. Financial Ratio analysis, financial statements, and financial planning. Marketing: Product line management, strategies of promotion, advertising and pricing, and analysis of the marketing environment. Operations Management: Aggregate production planning and production standards for quality, cost and quantity control. Economics & Statistics: Statistical analysis and quantitative models including forecasting methods, and the economic environment. Management: Planning, organization, motivation, and communication. Information Systems: Forecasting and financial simulation models. Grading Business Strategy Game (BSG) (team score) 25% Final BSG Report and Presentation (team score) 5 In-class exams from textbook (individual scores) 25 Industry Analysis (team score) 10 Case Analyses (6) (individual scores) 20 Comprehensive Case Analysis (individual score) 10 Attendance/Participation/Instructor Evaluation (individual score) 5 ------- Total 100% Grading Scale > 89 = A 80-89 = B 70-79 = C 60-69 = D < 60 = F Grading Criteria No Plus/Minus grading will be used in this course. There are no extra credit assignments. Students will be graded on the coherent organization of thought, knowledge level, clarity, conciseness, and style of expression, willingness to express views and degree of preparedness. Students are graded on achievement, rather than effort. It is the responsibility of each student to come to class prepared. Presentations and papers will be graded on the following criteria: Content 70% Format and Presentation 15% Style, Grammar and Usage 15% All documents are to be typed using Arial or Times font, 12-points, double-spaced pages with one inch margins all around, spell-checked and grammar-checked and conform to MLA Stylesheet or APA format. BUS499 Spring 2014, Professor Stone Page 2
Business Strategy Game (25% of course grade -Team Assignment) In the Business Strategy Game (BSG), class members are divided into teams and assigned to run an athletic footwear company in head-to-head competition against companies run by other class members. Companies compete in a global market arena, selling branded and private-label athletic footwear in four geographic regions Europe-Africa, North America, Asia-Pacific, and Latin America. The computer simulation game allows students to apply previously learned concepts, skills and techniques in an international competitive and goal-oriented environment. Successful management of a firm requires a balanced emphasis among all functional areas. The game is a dynamic-interactive simulation. The effectiveness of team decisions rests both on the theoretical correctness of each simulated yearly decision and on the competitive decisions of other teams. The Game website is at: http://www.bsg-online.com. BSG Grading Weight Quiz 1 Score (online) 3% Quiz 2 Score (online) 7% 3-year Strategic Plan (2 plans, online, each 10%) 20% Game Score 70% ------ Total 100% Final BSG Report and Presentation (5% of course grade - Team Assignment) The final report and presentation is a critical analysis of the company performance against its strategic and operational plans. Each team will prepare a final written report and prepare an online presentation to the class. These presentations must be narrated and presented. All members must contribute to the report and presentation. Participation in this activity will be evaluated by each teammate and will contribute to the student s attendance/participation grade. The final written report should include all of the following nine elements. The written report is to be typed using Arial or Times font, 12-points, double-spaced pages with one inch margins all around, spell-checked and grammar-checked, and conform to MLA Stylesheet or APA format. Online presentations should focus on one to three of the elements. 1. Review of the Financial and Strategic Performance including total annual revenues, EPS, ROE, credit rating and stock prices, trends in the image rating, trends in global unit sales, and trends in the company s market share. 2. Analysis of company s Pricing Strategy 3. Analysis of the company s Production Strategy and Work Force Compensation Strategy. 4. Analysis of the company s Marketing Strategy. 5. Analysis of the company s Financial Strategy 6. Analysis of the two companies that the team considers to be its strongest/closest competitors including detailing the actions the firm would take to out-compete these close rivals in the next two years. 7. Analysis of lessons learned about crafting a winning strategy and what managers of a company should or should not do. 8. What strategic moves were successful? What changes were made during the game in response to competitive forces? 9. What are the plans to continue the company in the next two years? What would you do differently if you were to play the game again? BUS499 Spring 2014, Professor Stone Page 3
Exams (25% of course grade Individual Assignment) There are two multiple-choice exams. The exams will be non-cumulative. The content of the exams is noted in the class schedule below. There are no make-up exams without medical or legal documentation. Industry Analysis Research Paper (10% of course grade Team Assignment) Each team will prepare an industry analysis research paper using the material from the External Analysis chapter (Chapter 2) and the Competitive Dynamics chapter (Chapter 8). Industries must be approved by the instructor. Detailed instruction will be available in a separate document. The research paper is to be typed using Arial or Times font, 12-points, double-spaced pages with one inch margins all around, spellchecked and grammar-checked and conform to MLA Stylesheet or APA format. Weekly Case Analyses (20% of course grade Individual Assignment) We will discuss six cases during the semester. Cases are available from Harvard Business School Publishing. Each case can be downloaded at $3.95. For each case, you will be given instructions to guide the class discussion. The instructions will typically provide a list of questions for which you must prepare written answers and turn in at the time of the class discussion. You will use your written answers to guide your class contribution. All documents are to be typed using Arial or Times font, 12-points, double-spaced pages with one inch margins all around, spellchecked and grammar-checked and conform to MLA Stylesheet or APA format. Submissions after the class discusses the case will not be accepted. Coursepack link: https://cb.hbsp.harvard.edu/cbmp/access/23818017 Comprehensive Case Analysis (10% of course grade Individual Assignment) There will be a comprehensive case, Apple in 2010 is available in the Harvard Business School Press course pack at https://cb.hbsp.harvard.edu/cbmp/access/23818017 (same as above). The analysis must include an evaluation of the relevant external forces and an internal analysis leading to a SWOT analysis. Apple in 2010 was a diversified corporation, and you must evaluate each business unit separately and provide recommended strategic alternatives for each business unit. You must also provide a corporate-level analysis and recommendation. The length of this case analysis should be between eight and twelve typed pages. Detailed instruction will be available in a separate document. All documents are to be typed using Arial or Times font, 12-points, double-spaced pages with one inch margins all around, spell-checked and grammar-checked and conform to MLA Stylesheet or APA format. Attendance, Class Participation and Instructor Evaluation (5% of course grade) Students are expected to complete the weekly assignments before the beginning of the next class meeting. In a seminar class such as this, the success of the class, the enjoyment of each student, and the degree of material learned is highly dependent on classroom participation. To that end, attendance will be taken at the beginning of each class. Students who do not stay for the entire class session will be marked absent. Your preparation for class discussion will be considered, as well as the extent and quality of your contribution. Group Exercises & Class Participation involves the student s ability to stimulate discussion and contribute to class activities. The grade is based on quality, not on quantity of participation. BUS499 Spring 2014, Professor Stone Page 4
Course Standards and Academic Honesty 1. Academic dishonesty includes such things as cheating, inventing false information or citations, plagiarism and helping someone else commit an act of academic dishonesty. It usually involves an attempt by a student to show possession of a level of knowledge or skill that he/she does not possess. 2. Course instructors have the initial responsibility for detecting and dealing with academic dishonesty. Instructors who believe that an act of academic dishonesty has occurred are obligated to discuss the matter with the student(s) involved. Instructors should possess reasonable evidence of academic dishonesty. However, if circumstances prevent consultation with student(s), instructors may take whatever action (subject to student appeal) they deem appropriate. 3. Instructors who are convinced by the evidence that a student is guilty of academic dishonesty shall assign an appropriate academic penalty. If the instructors believe that the academic dishonesty reflects on the student's academic performance or the academic integrity in a course, the student's grade should be adversely affected. Suggested guidelines for appropriate actions are: an oral reprimand in cases where there is reasonable doubt that the student knew his/her action constituted academic dishonesty; a failing grade on the particular paper, project or examination where the act of dishonesty was unpremeditated, or where there were significant mitigating circumstances; a failing grade in the course where the dishonesty was premeditated or planned. The instructors will file incident reports with the Vice Presidents for Academic Affairs and for Student Affairs or their designees. These reports shall include a description of the alleged incident of academic dishonesty, any relevant documentation, and any recommendations for action that he/she deems appropriate. 4. The Vice President for Student Affairs shall maintain an Academic Dishonesty File of all cases of academic dishonesty with the appropriate documentation. 5. Student may appeal any actions taken on charges of academic dishonesty to the "Academic Appeals Board." 6. The Academic Appeals Board shall consist of faculty and at least one student. 7. Individuals may not participate as members of the Academic Appeals Board if they are participants in an appeal. 8. The decision of the Academic Appeals Board will be forwarded to the President of CSU Channel Islands, whose decision is final. Disability California State University Channel Islands is committed to equal educational opportunities for qualified students with disabilities in compliance with Section 504 of the Federal Rehabilitation Act of 1973 and the Americans with Disabilities Act (ADA) of 1990. The mission of Disability Accommodation Services is to assist students with disabilities to realize their academic and personal potential. Students with physical, learning, or other disabilities are encouraged to contact the Disability Accommodation Services office at (805) 437-8510 for personal assistance and accommodations. BUS499 Spring 2014, Professor Stone Page 5
Class Schedule BUS499 TueThu, 12:00pm to 1:15pm subject to change during the semester Week Date Topic Assignments Due Before Class 1 Jan 21 Jan 23 Orientation and introduction to the course What and Why of Strategic Management Read textbook Ch. 1 2 Jan 28 Jan 30 Financial Reporting and Analysis BSG Game Overview Read textbook Ch. 13 Read BSG Players Guide available online and on MyCI 3 4 5 6 Feb 4 External Analysis Read textbook Ch. 2 Feb 6 Case Analysis: Discuss Robin Hood Case Read the Robin Hood Case (on MyCI) Feb 11 Internal Analysis Read textbook Ch. 3 Feb 13 Feb 18 The Resource Based View (RBV) model Business Level Strategy: How Should We Compete? Read textbook Ch. 5 Feb 20 Discuss Cola Wars Case Turn in Cola Wars Case Analysis Feb 25 Midterm 1 Covering all material from Week 1 through Week 5 (Bring scantron) Feb 27 Competitive Dynamics Read textbook Ch. 8 (Comp. Dynamics section) 7 Mar 4 Mar 6 How to Conduct an Industry Analysis using online resources. The Modern Firm and the Importance of Intellectual Assets Review CSUCI Library resources Read textbook Ch. 4 8 Mar 11 Corporate Level Strategy: In What Industries Should We Compete? Read textbook Ch. 6 Mar 13 Discuss Newell Case Turn in Newell Case Analysis 9 10 Mar 18 International Strategy Read textbook Ch. 7 Mar 20 Discuss Lavendary Case Turn in Lavendary Case Mar 25 BUS499 Spring 2014, Professor Stone Page 6
Class Schedule BUS499 TueThu, 12:00pm to 1:15pm subject to change during the semester Week Date Topic Assignments Due Before Class 10 Mar 27 Spring Break 11 Apr 1 Review of Comprehensive Case Analysis Apr 3 Leadership and Ethics Read textbook Ch. 11 Apr 8 Discuss Sparling Case Turn in Sparling Case Analysis 12 Apr 10 Discuss Walmart in 2011 Case Turn in Walmart in 2011 Case Analysis Apr 15 BSG Game Debriefing Review your team s BSG performance 13 Apr 17 Teams work on preparing BSG Report and Presentation Bring BSG reports 14 Apr 22 Innovation Read textbook Ch. 11 Apr 24 Discuss Dropbox Case Turn in Dropbox Case Analysis 15 Apr 29 Entrepreneurship Read Ch. 8 (Entrepreneurship section) May 1 Business Models and Business Plans 16 17 May 13 May 6 BSG Presentations Turn in all presentation materials May 8 BSG Presentations Turn in BSG Final Report Final Exam 10:30 am to 12:30 pm Covering all material from Week 6 through Week 15 (Bring scantron) Turn in Apple in 2010 Comprehensive Case Turn in Team Industry Analysis BUS499 Spring 2014, Professor Stone Page 7
Business Strategy Game (BSG) Schedule All decisions are to be submitted online by 11:59 pm on the decision due dates. No exceptions will be allowed. Week Date Assignments 2 Thu., 1/30 In class: Review BSG info and form teams in class 3 Sun., 2/9 Individual online Quiz 1 available 4 Sun,. 2/16 Submit Year 11 Practice Decision 1 Deadline to complete online individual Quiz 1 5 Sun., 2/23 Submit Year 12 Practice Decision 2 6 Mon., 2/24 Reset the online simulation. Year 11 Decision available. 6 Wed., 2/26 Submit Year 11 Decision 6 Sun., 3/2 Submit Year 12 Decision 7 Wed., 3/5 Submit Year 13 Decision 7 Sun., 3/9 8 Sun., 3/16 9 Wed., 3/19 Submit Year 14 Decision Interim Peer Evaluations available Submit 3-year Strategic Plan for Y15-17 Submit Year 15 Decision Deadline to complete online individual Quiz 2 Submit Year 16 Decision Deadline to complete online Interim Peer Evaluations 9 Sun., 3/23 Submit Year 17 Decision 11 Sun., 3/30 Submit 3 year Strategic Plan for Y18-20 Submit Year 18 Decision 12 Wed., 4/2 Submit Year 19 Decision 12 Sun., 4/6 Submit Year 20 Decision 16 Tue and Thurs, 5/6 and 5/8 In class: Team Presentations Turn in Presentation Materials and Final Report 16 Fri, 5/9 End-of-Game peer evaluation available 17 Tue., 5/13 Deadline to complete online End-of-Game Peer Evaluations BUS499 Spring 2014, Professor Stone Page 8