Nanyang Business School MBA Program Strategic Management by Associate Professor Eugene Kang Office Location: S3-B1C-85 Office Telephone: (65) 6790 5667 Email: aslkang@ntu.edu.sg Learning Objectives 1. To understand and apply the concepts, principles and frameworks for formulating and implementing strategy. 2. To gain insights into the practice of strategy formulation and implementation in their relevant contexts by studying cases of how organizations have deployed their capabilities to achieve strategic outcomes in their business(es). 3. To consider and discuss how strategic capabilities may be developed and deepened in your organization so that you may more effectively achieve strategic outcomes for your organization. Class Expectations You are expected to be actively engaged in the learning process. The pedagogical approach emphasizes self and group learning (not teaching) through discovering (not covering). The following are examples of behaviors that are consistent with the pedagogical approach. 1. Read beforehand the articles for the topics to be covered for each day. 2. Prepare for the case discussion by reading the assigned cases and outlining your answers to the questions for each case. 3. Share your analysis and actively participate in the discussions so that we can learn from each other s perspectives and experiences. 1
4. Apply the concepts, principles and frameworks to your organization, sharing specific areas where application and/or adaptation will help improve performance. Class Format 1. Lecture and discussion. 2. Class discussion on and group presentation of assigned case. 3. Applications to students professional experiences and organizational contexts. Course Assessment Assessment for the course comprises the following three components: Component 1 Group Presentation of Solutions to a Case Problem: 20% This is a group assignment. You will be assigned to a team, which will be required to present the solutions to a case problem. Your team will be evaluated according to a set of criteria to be revealed with the release of the case. This component simulates a case competition setting where your team will be evaluated relative to other teams presenting their unique solutions to the same case problem. All teams must email me the final powerpoint slides at least 24 hours prior to the start of the session. Late submissions will be penalized. 2
Component 2 Class Participation: 40% You are expected to be present and to contribute to the class interaction and discussion in every class. For real learning to occur, every student must be active participants in the learning process. We gain more knowledge when we actively participate in its construction. If you have to miss any particular class, you must send me an email before class to explain your absence. If you miss more than two classes, you will fail your class participation. Read the text, articles, and the assigned case study before each class. Prepare answers to the assigned questions of the case. Think critically about the insights and lessons from each case, and seek to apply these to your professional and organizational experience. Come prepared to actively participate in the case discussion, including sharing your observations, analyses and applications, probing the contributions of your course mates, and recommending strategies and actions for the case organization going forward. Place your name card in front of you in every class. During the class discussion, you will be called to answer questions and share your analyses, even if you did not put up your hands or volunteer. Assessment will be based on the quality of your participation, i.e., demonstration of critical thinking, in every class. Quality participation also have some of the following characteristics: (1) realistic and effective action recommendations, (2) so called stupid questions that no one else is willing to ask but open up productive paths of enquiry, (3) constructive critiques of others contributions, (4) impact on peers thinking and seminar learning, and (5) clarity and effectiveness of communication. 3
Component 3 Term Paper on Strategic Development or Change: 40% This is an individual assignment. Select an actual strategic development or change situation in your organization or an organization you are familiar with. Your selection should be a major development or change in strategy, structure, system, policy or process. The information on the strategic development or change must be available publicly or from the organization (with permission granted). Assessment will be based on the paper requirements and the critical thinking rubric detailed in the next section. Paper Requirements: A. Analyze the Context o Provide a brief background of the organization and its context. o Why was there a need for strategic development or change? o Was the organization ready for the strategic development or change? How do you know? o What were key issues and their underlying causes? o What strategic value was the strategic development or change expected to create? B. Analyze the strategy implemented. o What was the strategy adopted? Why? o How was the strategy formulated? o How was the strategy implemented? o How was progress measured? o Evaluate the effectiveness of the strategy implemented. Use appropriate data (quantitative and qualitative) to analyze whether the desired outcomes of the strategy have been achieved, and why. o What were the lessons learnt? o What further actions or next steps would you recommend? Why? 4
C. Deliverables: o o A report of your analysis and evaluation (as described in the requirements above). To be submitted by 10pm on 7 February 2017 via Turnitin on NTULearn. Late submissions will be penalized. o The report contents must not exceed 16 pages (excluding exhibits). The first page of the report contents must be an executive summary. The entire report must be formatted with 11-point font and 1.5 spacing. o Whenever possible, charts, tables, and diagrams should be shown as exhibits at the end of the report. The exhibits must be properly organized and referred to in the main report. The exhibits must not exceed 5 pages. 5
Critical Thinking Rubric Learning Objectives: The ability to define i, examine ii, evaluates iii, analyze iv and synthesize v various arguments and knowledge to form independent judgment. Evaluation: (Scant) 1 ----- 2 ----- 3 ----- 4 ----- 5 ----- 6 (Substantially Developed) Traits Scant Rubrics Substantially Developed Identifies and summarizes the issue at hand. Identifies and considers other theoretical perspectives that are important to the analysis of the issue. Identifies and assesses the quality of supporting data/evidence and provides additional data/evidence related to the issue. Identifies and considers key assumptions and the influence of the context on the issue. Identifies and assesses conclusions, implications and consequences Does not identify and summarize the issue, is confused or represents the issue inaccurately. Deals only with a single perspective and fails to discuss other possible perspectives, especially those salient to the issue. Fails to identify or hastily dismisses strong, relevant counterarguments. Merely repeats information provided, taking it as truth, or denies evidence without adequate justification. Confuses associations and correlations with cause and effect. Does not surface the assumptions of the author and does not examine the contexts, e.g., cultural, and political. Fails to identify conclusions, implications, and consequences of the issue or the key relationships among the various elements such as context, evidence or assumptions. Regardless of the evidence or reasons, maintains or defends views based on self-interest or preconceptions. Identifies the main issue and its implicit aspects, addresses their relationships to each other and recognizes nuances of the issue. Addresses perspectives noted previously, and additional diverse perspectives drawn from outside information. Identifies the salient arguments (reasons and claims) pro and con. Examines the evidence and source of evidence; questions its accuracy, precision, relevance, and completeness. Observes cause and effect and addresses existing or potential consequences. Identifies and questions the validity of the assumptions and analyzes the issue with a clear sense of scope and context. Identifies and discusses conclusions, implications, and consequences, considering context, assumptions, data, and evidence. Objectively reflects upon own assertions. Draws warranted, judicious, non-fallacious conclusions. i. Define the subject matter at hand. ii. Discuss the subject matter from various theoretical perspectives. iii. Assess the truth, relevance and strength of evidence used to support arguments. iv. Bring to light hidden assumptions of arguments and examine the influence of the context on the subject matter and discuss the contingencies that constrain the validity of arguments. v. Integrate, synthesize, or reconcile the various arguments presented and draw conclusions on the subject matter. 6
Academic Integrity Good academic work depends on honesty and ethical behaviour. The quality of your work as a participant relies on adhering to the principles of academic integrity and to the NTU Honour Code, a set of values shared by the whole university community. Truth, Trust and Justice are at the core of NTU s shared values. As a participant, it is important that you recognize your responsibilities in understanding and applying the principles of academic integrity in all the work you do at NTU. Not knowing what is involved in maintaining academic integrity does not excuse academic dishonesty. You need to actively equip yourself with strategies to avoid all forms of academic dishonesty, including plagiarism, academic fraud, collusion and cheating. If you are uncertain of the definitions of any of these terms, you should go to the academic integrity website http://academicintegrity.ntu.edu.sg for more information. Consult your instructor(s) if you need any clarification about the requirements of academic integrity in the course. Recommended Textbook Ireland et al., Competing for Advantage (3 rd Edition, 2013), Cengage. 7
Session Topics Required Readings 1 Case/Activity 2 1 Introduction to Strategic Management Chapter 1 The Competitive Landscape The Emergence of Strategic Management as a Business Discipline Three Perspectives on Value Creation Strategic Thinking and the Strategic Management Process 2 Group Presentation of Solutions to a Case Problem Trial Run Case Competition 3 The External Environment - General and Industry External Environmental Analysis Segments of the General Environment Industry Environment Analysis Chapter 3 Debrief Trial Run Case Competition 8
Session Topics Required Readings 1 Case/Activity 2 4 The External Environment - Competitor Analysis of Direct Competitors (from Chapter 3) Competitor Analysis Drivers of Competitive Actions and Responses Competitive Rivalry Likelihood of Attack Likelihood of Response Competitive Dynamics 5 The Internal Organization Internal Analysis and Value Creation Resources, Capabilities, and Core Competencies Building Core Competencies Firm Performance Chapters 3 and 6 Chapter 4 In-Class Activity Samsung Electronics 9
Session Topics Required Readings 1 Case/Activity 2 6 Business-Level Strategy Economic Logic and Business-Level Strategy Cost Leadership Strategy Differentiation Strategy Focus Strategies Integrated Cost Leadership / Differentiation Strategy 7 Corporate-Level Strategy Chapter 5 Chapter 8 Southwest Airlines In-Class Activity Levels of Diversification Reasons for Diversification Diversification and the Multidivisional Structure Related Diversification Unrelated Diversification Value-Neutral Diversification: Incentives and Resources Value-Reducing Diversification: Managerial Motives to Diversify 10
Session Topics Required Readings 1 Case/Activity 2 8 Acquisition and Restructuring Strategies The Popularity of Merger and Acquisition Strategies Reasons for Acquisitions Problems in Achieving Acquisition Success Effective Acquisitions Restructuring 9 Cooperative Strategy The Importance of Cooperative Strategy Cooperative Strategies that Enhance Differentiation or Reduce Costs Cooperative Strategies that Address Forces in the External Environment Cooperative Strategies that Promote Growth and/or Diversification Competitive Risks of Cooperative Strategies Implementing and Managing Cooperative Strategies Chapter 9 Chapter 7 Danaher Corporation The Walt Disney Company and Pixar Inc. 11
Session Topics Required Readings 1 Case/Activity 2 10 International Strategy Incentives for Using an International Strategy International Corporate-Level Strategy International Business-Level Strategy Choice of International Entry Mode Strategic Competitiveness Outcomes Chapter 10 Haier 11 Group Presentation of Solutions to a Case Problem Graded Case Competition 12 Strategic Leadership Strategic Leaders as a Key Resource through Their Influences on Strategic Decisions Top Management Teams Key Strategic Leadership Responsibilities and Actions Chapter 2 The Marvel Way 1 Additional required readings will be posted on the NTULearn course website. 2 The case discussion questions and more information on the activities will be posted on the NTULearn course website. 12