MGMT 3280: Strategic Management Professor Nicholas J. Bailey Office: Friday 290B Sec 02: TR 9:30-10:45am Denny 120 Tel: (801) 628-8648 Sec 03: TR 11:00am-12:15pm Storrs 155 Email: nicholas.bailey@grad.moore.sc.edu Office hours: TTH 12:30-3:00pm Course Description and Objectives This course explores why and how firms differ and how management influences overall firm performance. The firm s strategy is an integrated, externally oriented concept of how the firm will achieve its objectives. Strategic management is the process by which the firm s decision makers plan and implement firm-level policies to achieve that success. In the field, strategic management encompasses such concerns as mapping out the desired future situation of the company and putting into place internal procedures and processes that will keep the company moving in the desired direction. This is a critical thinking course. Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication, as a guide to belief and action. The primary objectives of the course are as follows: 1. Develop your capacity to think strategically about the company, its present business position, long-term direction, resources and capabilities, the caliber of its present strategy, and opportunities for gaining sustainable competitive advantage. 2. Understand fundamental strategic management concepts: levels and components of strategy, competitive analysis, and the evolution of firms and industries. 3. Integrate the knowledge gained in earlier courses in the business school curriculum, show how the business puzzle fits together, and demonstrate why different parts of the business need to be managed in strategic harmony for a company to operate in a winning fashion. 4. Provide hands-on experience in crafting business strategy, reasoning about strategic options, using what if analyses to evaluate action alternatives, and making sound strategic decisions. 5. Develop managerial thinking and communication: thorough analytical analysis and effective written and oral presentation of conclusion/recommendations. Course Materials Course Book The course book contains required readings and cases for the class. This custom course pack is published by McGraw-Hill, and is available either through the bookstore or through McGraw-Hill s website (in ebook format). Please keep in mind that our institution adheres to copyright law, so any copyrighted material should not be copied or duplicated in any way. If you wish to order your book online, go to http://create.mcgrawhill.com/shop and follow these steps: Click on Search for and select book by Title, ISBN, Author, or State/School. o ISBN: 9781308435596 o Title: Strategic Management Add the book to your cart and pay using a credit card or access code. Business Strategy Game Simulation We will be running The Business Strategy Game, a computer-based business simulation as part of our class. The simulation, which costs $44.95 is available at www.bsg-online.com. Each enrolled student is required to purchase an individual license. Instructions on how to register can be found here Account Registration Demo BSG Company Registration Code is: Section 02: 42838-NBY Section 03: 42839-NBY 1
Individual team letter code will be provided to you separately on Moodle. You must have this letter code in order to complete the registration. All addition information needed to complete the simulation is found on the website at www.bsg-online.com. Grades Assignment: Weighting BSG Simulation Exercise (60%) % Company Performance 35 BSG Quiz 1 2.5 BSG Quiz 2 5 Strategic Plan #1 5 Board Presentation 10 Peer evaluation scores 2.5 Other (40%) Class Participation 20 Mid-term Exam 15 Current Events Presentations 5 Σ = 100% BSG Simulation Exercise BSG is one of the premier business simulation programs in the country. This simulation will give you the opportunity to work as a team to run a company while competing against your classmates. Your decisions and the decisions of the other teams will be processed to provide ongoing feedback on your company s performance. You are responsible for understanding how the simulation operates. Time inside and outside of the room will be used for the simulation. It is web-based, which allows you to perform analyses and make decisions according to your own schedules. Time has been set aside for you to individually familiarize yourself with the program and make a number of practice decisions as a team. The simulation website provides excellent help and tutorials not only on the program, but on the content of your decisions. If you have questions about the details of the simulation (especially technical ones), BSG provides support on the phone and via email. Company Performance (35 percent) Your team will be graded on how well the company you run performs on the balanced scorecard created by Capstone. Forty percent of your final grade will be based on your company s performance, and each member of the team will be assigned the same, team-wide, grade (conditional on the peer evaluation). The instructor reserves the right to modify individual grades based on peer evaluations and other factors as deemed appropriate. After teams are assigned, you will work together on two practice decision years (i.e., performance after these rounds will be reset). This will give you time to think through the strategy you want to implement. After the practice round, the game is reset and the scored decision rounds will begin. Each subsequent scored decision round must be completed before midnight on the date indicated in the class schedule. Simulation Assignments (12.5 percent) You will complete three assignments in order to prepare yourself and your team for the start of the simulation. Due dates for all assignments can be found on the class schedule. All assignments are due before midnight on the date indicated. BSG Quiz #1 (2.5 percent) is an open book multiple choice quiz which covers the contents of the Participant s Guide. This quiz is done individually. 2
BSG Quiz #2 (5 percent) is also an open book multiple choice quiz which tests you understanding of key aspects of company operations and your command of ways to improve company performance. This quiz is also done individually. Strategic Plan #1 (5 percent) is a 3-year strategic plan each company s management team must submit, which (1) articulates a strategic vision for your company (in a few sentences), (2) sets performance targets for EPS, ROE, stock price appreciation, credit rating, and image rating for each of the next three years, (3) states the competitive strategy the company will pursue, (4) cites data showing that the chosen strategy either is currently on track or requires further managerial actions, and (5) develops a projected income statement for the each of the next three years based upon expected unit sales, revenues, costs, and profits. Team Problems and Peer Evaluations (2.5 percent to variable) If you are having interpersonal problems in your group, try to work it out among yourselves. If the problem persists, bring it to my attention during the semester. Each student will be required to fill out an anonymous peer evaluation of his/her teammates that can affect individual grades. Thus, I reserve the right to also adjust final individual simulation grades either positively or negatively based on your peer evaluations. Final Team Presentation (10 percent) During the final week of class, your team will give a 10-12 minute oral report to your company s Board of Directors, where you will analyze what actually transpired during your tenure running the company. Here you will outline your team s strategic plan and how you implemented it. Ten percent of your final grade will be based on this report, and each team member will be assigned the same, team-wide, grade, unless information is provided to the instructor regarding the performance of a team member which is different from all other team members. As part of the presentations, each team will be assigned another team in the class and will be responsible for asking their assigned team one thoughtful question based on the team s strategy, outcomes, and presentation. Class Participation (20 percent) Classroom participation is a significant portion of your grade. Each student will be graded based upon his or her contribution to class discussion. Effective participation is accomplished by focused comments or questions that develop insights that are not immediately discernible from the cases or readings, and demonstrate mastery of reading and case materials. I especially encourage class participation that applies conceptual frameworks to case materials and that enriches the learning experience of the class. I expect students both to attend class and to be prepared to participate in each and every discussion. Students are expected to attend all classes. Part of class attendance is coming prepared (with textbook in hand having done the readings). To this end, I will take role and mark who has contributed to the class discussion each day (when applicable) and give reading quizzes for each chapter. These quizzes will be included in your participation grade. Thus, class participation includes three components: (a) class attendance; (b) frequency of class participation; and (c) reading quiz scores. Mid-Term Exam (15 percent) There will be a mid-term exam covering important class material. The exam is designed to test your understanding of concepts to ensure that students understand the language of strategy. The exam will be made up of multiple choice questions, with several short essays. Makeup exams will be allowed only with preapproval of the instructor or with an acceptable, documented reason. Acceptable reasons for makeup exams include severe illness, family emergencies or other unavoidable events. Current Events Presentations (5 percent) Each group will present once at the beginning of class (see schedule) on a current event in business strategy. Current events should be taken from a recent edition of a reputable national periodical (e.g. WSJ, New York Times) and selected with an eye on firm or industry strategy (e.g. mergers, restructuring). Presenters should discuss the issue raised in the article, evaluate the strategy, and discuss its relevance with concepts learned in 3
the course. The class will then discuss the article. Articles for discussion must be posted on Moodle under the News Forum section for Current Events Presentations by 5:00 PM the day before your group is scheduled to present. All students should read the article and prepare their thoughts prior to class. Presentations are evaluated based on their relevance to course concepts, ability to integrate the article to class material, and their discussion ability. Note: Professor reserves the right to make changes to the syllabus at any time. The Belk College of Business strives to create an inclusive academic climate in which the dignity of all individuals is respected and maintained. Therefore, we celebrate diversity that includes, but is not limited to ability/disability, age, culture, ethnicity, gender, language, race, religion, sexual orientation, and socioeconomic status. Date Topic Assigned Readings Deliverables 1 1/8 Th Course Introduction 2 1/13 T NO CLASS 3 1/15 Th NO CLASS 4 1/20 T 5 1/22 Th What is Strategic Management? What is Strategic Management (Cont.) What is Strategy? (Moodle) Textbook Chapter 1 Case: Robin Hood (1) 6 1/27 T External Environment Textbook Chapter 2 7 1/29 Th External Environment Case: The Movie Exhibition Industry 2013 (16) 8 2/3 T Internal Environment Textbook Chapter 3 9 2/5 Th Internal Environment Case: Pixar (4) 10 2/10 T Business-Level Strategy Textbook Chapter 5 11 2/12 Th Business-Level Strategy Current Events (A) Current Events (B) 12 2/17 T Corporate-Level Strategy Textbook Chapter 6 13 2/19 Th Wrap-up Case: Apple (6) Current Events (C) Current Events (D) 4
Date Topic Assigned Readings Deliverables 14 2/24 T Review for Mid-term exam Current Events (E) Current Events (F) 15 2/26 Th MID-TERM EXAM NO CLASS FALL BREAK 3/3 and 3/5 16 3/10 T Introduction to The Business Strategy Game BSG Player s Guide Register for BSG Current Events (G) Current Events (H) 17* 3/12 Th BSG Practice Round 1 BSG Practice Round 1 due (before midnight) 18 3/17 T BSG Practice Round 1 debrief Q&A Quiz 1 due (before midnight) Current Events (I) Current Events (J) 19* 3/19 Th BSG Practice Round 2 BSG Practice Round 2 due (before midnight) 20 3/24 T BSG Practice Round 2 debrief Q&A Current Events (K) Current Events (L) 21* 3/26 Th BSG Year 11 Year 11 22* 3/31 T BSG Year 12 Year 12 23* 4/2 Th BSG Year 13 Year 13 24 4/7 T BSG Year 14 25* 4/9 Th BSG Year 15 3-year Strategic Plan Year 14 Quiz 2 Year 15 26* 4/14 T BSG Year 16 Year 16 27* 4/16 Th BSG Year 17 Year 17 28 4/21 T BSG Year 18 Year 18 29 4/23 Th Board Presentations 5
Date Topic Assigned Readings Deliverables 30 4/28 T Board Presentations Course Wrap-up * NO CLASS (i.e. indicates that class will not be formally held on this date in order to give you the opportunity to meet with your teams to work on your strategy and decisions for the indicated decision round) 6