BA 495

Business Strategy

 

Spring 2008

 

Tue/Thu 3:40-5:30    Room: BA 160

 

 

Instructor:      Wilson Zehr

Address:         School of Business Administration, Portland State University

 615 SW Harrison St., Office SBA 632
 P.O. Box 751

 Portland, OR 97207

Phone: (503) 789-2676

Email:             wilson@cendix.com

Office Hours: By appointment

 

Graduate Assistant: Wilson Zehr

Email:             wilson@cendix.com

“Smart: We work smart. We challenge the status quo to find the next great idea. Where we can’t find disruptive change, we continue to refine and optimize. We take calculated risks in the hope of finding the next great idea; but, we don’t throw caution to the wind – we make sound business decisions based on the facts of each situation.“

Cendix Corporate Values (www.cendix.com)

Course Overview

 

Course Description:

This is the capstone course for the SBA; should be taken in the student’s final term. Students learn to systematically analyze a firm’s internal and external environments and to apply concepts and theories related to the formulation and implementation of business and corporate–level strategies. The influence of other functional areas (marketing, finance, accounting, etc.) on strategic thinking is emphasized in teaching students the linkage between strategic problems, management interpretations, solutions, and firm performance outcomes. Enrollment priority is given to graduating seniors who have applied for graduation.

 

Credits: 4

 

Prerequisites:

BA 302, 303, 311, 325, 339, 385 and admission to the School of Business; BA 301 is recommended.  Students are expected to have access to a personal computer, Microsoft Office (or comparable office productivity software), and a printer.  A laptop is not required for this course but will be extremely helpful for any presentations needed.

 

Course Materials

 

Required Reading:

(1) Our text book is Hitt, Michael A./Ireland, R. Duane/Hoskisson, Robert E. (2007) Strategic Management – Competitiveness and Globalization (Concepts). 7th edition, Mason, OH: South–Western (available at the PSU Bookstore or online).

(2) A course package containing the case studies “may be” available for purchase at Clean Copy (1704 SW Broadway, Portland, OR 97201, Phone (503) 221–1876).

(3) The syllabus, PowerPoint slides, and case questions are posted on WebCT. You are responsible for checking WebCT and your PSU email account regularly.

Expectations

This class is expected to be a highly interactive, reasonably demanding class that is nevertheless informal and fun. It is expected that everyone will have read the assigned material prior to each class and will be an active participant, prepared to ask questions, discuss alternative views, and generally contribute to the flow of the class.  The key to making any case study program work in the academic environment is class participation and open exchange of ideas – the more that you put into this class in terms of participation the more we will ALL get out of it.

 

Attendance: Students are expected to attend all classes, in order to be well prepared for exams and to achieve high grades in class participation. Prompt arrival to each session will be appreciated. Failure to attend a class, when attendance is taken, will have a negative effect on your participation grade.

Deliverables and Evaluation of Course Performance

 

Grade in this course will be based on 4 elements:

 

1) Midterm Exam                      25%

Total: 100%
 
2) Final Exam                          25%

3) Graded Projects/Cases        30%          

4) Participation/Briefs   20%

The goal of every class is for the student to demonstrate mastery of the material that is studied.  Students must demonstrate that mastery based on their class participation/attendance, graded projects/cases, and the results from exams offered in class. 

This class does not impose any quotas on A’s, B’s, C’s, or any other letter grade.  If every student delivers “A” quality work, and demonstrates “A” level comprehension of the topics studied, then every student will get an A.  Of course, the same goes for the opposite extreme. 

In general, 90% or better is considered an A; 80% or better is considered a B; 70% or better is considered a C; 60% or better is considered a D; anything less than 60% is a failing grade.  The instructor reserves the right to “curve” graded assignments based on overall class results and the level of difficulty or make adjustments based on effort/merit.

Exams

There will be two cumulative in–class exams based on the text book, slides, class discussions, and assigned readings. The exam will include a combination of multiple–choice and short essay questions based on a scenario provided or drawing from course studies. The purpose of the exams is to test your comprehension of the material and your ability to apply concepts to situations.  The mid-term will cover “all” class material covered through 5/1/08.  The final exam will include up to 30% of the mid-term material, but will focus primarily on new material presented after 5/1/08.

 

There will be no make–up exams unless you have a valid reason for missing the exam and prior approval from the Professor.  Failure to take an exam will result in a failing grade for that exam.

 

Graded Projects/Cases

We will cover the 6 cases indicated in the course schedule below. These cases will provide an opportunity to apply concepts discussed during class sessions to actual business scenarios. Before the class discussion for each case, two teams per case will be assigned to submit a written case analysis no more than 6 pages long (with an additional 5 pages of appendix if applicable).  In this case analysis, your team should demonstrate a thorough understanding of the case as well as how the case relates to the material covered in class.  In particular, your team is required to answer a series of questions posted on WebCT.  The emphasis lies on (1) a concise but comprehensive application of the theoretical concepts and frameworks that were discussed in class and (2) backing up your analysis with evidence from the case. Please also check the “Guidelines for Case Analyses” that are posted on WebCT.

 

A case is based on material gathered about a real organization. Not all the information provided in a case is relevant to the problem being solved; sifting through the case to find the relevant pieces is part of the challenge.  In addition, in many cases the information will not be complete.  In reality, most business decisions are made without perfect or complete information.  The business leader must make sound decisions based on critical analysis using the best information available.  Read the case well – more than once.  Make a decision.  Support it with facts and analysis.  Make reasonable assumptions where required.  Do not use terms such as “I think”, “I guess”, or “in my opinion”.  If the case has been done properly then it will flow to a defensible solution naturally without the need for wild leaps of faith based on an uneducated guess.

 

With that said, there is an important role for intuition (educated guesses) in making critical business decisions.  Quite often we take calculated risks based on the “gut feeling” of experts within an organization.  However, the use of this technique really depends on the magnitude of the decision, the time available, ultimate accountability, and the other information at our disposal.  We will talk more about the role of intuition in class, but it should not play a significant role in formal cases you submit – we are looking for conclusions based on fact/reasonable assumptions.

 

Teamwork is common in organizations as a means of accomplishing tasks, solving problems, brainstorming, formulating strategy, and developing new products or services. It is important for each student to gain experience in these activities as well.  You will be allowed to self–organize into teams of 3–4 students during the first week of class and submit a list of their 3 favorite cases.  After the first week any student who is not part of a self-selected group will be assigned to one.

 

Every team is required to send a two page “project draft” at least ONE WEEK before the team’s scheduled deadline and discuss their case analysis and approach.

 

After submitting the case analysis and presentation, each team member will rank the participation of each other team member. If team participation does not differ significantly between members, each team member will receive the same grade.  However, individual grades may be adjusted upward or downward if team ratings indicate unequal participation (in effort and/or quality). Failure to adequately participate in an assigned team case will result in a failing individual grade for the case.  It is the team’s responsibility to notify the Professor promptly if any group members are not participating or if friction develops within the group.

 

Academic honesty: All group members together are responsible for the academic integrity of the submitted case analysis. Any incident of academic dishonesty will automatically result in a failing grade for this assignment for each member of the group.  Please refer to the PSU “Code of Student Conduct & Responsibility” for details.  Thus, it critical for all members to review and approve the finished paper in advance of its due date.

 

Grading of Case Analysis

Assessment

Point Range

Quality of Work

A

≥ 93

Not only complete comprehension, but also in some cases understanding beyond questions posed in case analyses.

A–

90–92

Solid understanding of questions and did not miss any issues.

B+

87–89

Solid understanding of questions but missed a few minor issues.

B

83–86

Solid understanding of questions but missed a number of minor issues or
at least one major issue.

B–

80–82

Some understanding of questions but missed a number of minor issues and
a few major issues.

C+

77–79

Little understanding of questions and missed a number of minor issues and
a number of major issues.

Poor (C to F)

≤ 76

Little understanding of questions and did not capture any of the issues.

 

In addition to the six cases outlined below, there may be additional projects assigned during the course that highlight and explore current events or business topics.  These may be assigned as either individual assignments or group projects.  These assignments will be announced in class and students will “usually” have a week to complete the work.  These additional projects will follow the same grading criteria as case assignments.

Class Participation

An important part of effective mastery of this subject is active involvement in class discussion of the assigned cases and readings. In particular, come to class ready to discuss the cases that are assigned. Your insights during class discussion aid others in the learning process. Demonstration of insight and understanding are strongly rewarded. Remember, you should always have sound reasoning behind your judgments and conclusions. Your grade in class participation will be based on the quantity and quality of your participation. Please note, however, that contributions are not equivalent to only attending class or merely talking in class.

 

In preparation for classes where a case discussion is on the agenda each student will be required to submit an outline and summary of the case.  This document cannot exceed more than one page in length (single spaced, single sided).  This is not a group assignment and each individual must do their own work.  The document should include (1) a “concise” summary of the scenario under consideration, (2) the relevant factors to be considered, and (3) a recommendation or conclusion based on these factors.  Groups that have been assigned a formal presentation for the case that will be discussed do not need to turn in this summary.

Course Schedule

 

Class

Date

Assignment Due

1

04/01

Introduction: Getting to know each other; course outline

Case study review and guidelines

2

04/03

What is strategy? Hitt/Ireland/Hoskisson (HIH) chapter 1

3

04/08

External environment – I/O perspective: HIH chapter 2

4

04/10

Case: Pharmaceutical Industry (HBS Case 9–703–489)

5

04/15

Internal environment – Resource–based view: HIH chapter 3

6

04/17

Business–level strategy: HIH chapter 4

7

04/22

Competitive strategy: HIH chapter 5

8

04/24

Case: Southwest Airlines (HBS Case 9–694–023)

9

04/29

Case: 3M (HBS Case 9–395–016)

10

05/01

Corporate strategy: HIH chapter 6

11

05/06

Case: Disney (HBS Case 9–701–035)

12

05/08

Mid–term exam

13

05/13

Mid-term review

Acquisition & restructuring strategies: HIH chapter 7

14

05/15

Case: HP & Compaq (Stanford Case SM–130)

15

05/20

International strategy: HIH chapter 8

16

05/22

Case: Euro Disney (HBS Case 9–693–013)

17

05/27

Cooperative strategy: HIH chapter 9

18

05/29

Corporate governance: HIH chapter 10

19

06/03

Organizational structure & controls/strategic entrepreneurship:
HIH chapters 11 & 13

20

06/05

Summary/Course Review

21

06/09

Final Exam (10:15 – 12:00)

 

The schedule above is a guideline only.  We will make adjustments based on our progress during the semester, refined learning objectives, and the availability of outside experts who can help guide our discussion.  The exercises shown above will be announced in class.  If you are not in class when they are assigned then you will need to contact the Professor (email or phone) or locate a classmate who is willing to share the assignment with them.  It is still the student’s responsibility to make sure that assignments are completed on time.

Other Class Policies

Students should make every effort to notify the instructor of circumstances that will affect attendance and completion of required graded assignments and tests.  Late assignments of any kind will only be accepted with prior approval from the instructor.  All late assignments or make-up tests must be completed within one week of the original due date and will receive an automatic deduction of one letter grade. 

You are all future business leaders who are expected to graduate soon.  As such, we have high expectations for the materials that you submit.  All written assignments MUST BE submitted typed, single spaced, using proper grammar and spelling (spell check is available in almost any word processing application).  Written assignments that do not conform to this format, or papers submitted without a name, will be penalized one full letter grade.

Get to the point.  A common tactic is to write pages and pages on a topic hoping to cover something, anything really, that will resonate with the Professor and win points.  In the business world people are busy, attention spans are short, and you will have a narrow window in which to make your point.  If you don’t then people will stop listening – maybe for good!

Be concise.  Do not ramble.  Get down to facts quickly.  Summarize with bullets if required.  Make it easy for the reader to understand your conclusion and critical points without reading 6 pages of kitchen sink.  The analysis should definitely be there for those who want to dig deeper.  However, your work in business will carry far more weight if you save time and get to the point.

If you participate in extra-curricular activities that will require absence from class during the term, provide an activity schedule at the beginning of the term, and then send an email reminder before each class session that you will miss.  Assignments are due before you leave on your trip and this includes assignments for oral case presentations.  Exercises that were assigned and due while you were on an athletic trip can be submitted when you return.

Cell phones may not be used in class (not even for SMS or IM).  Cell phones must be turned off and stored out of sight during class.  Students may use laptop computers in class, but only for taking notes or actively participating in class activity.  Beyond this, laptop computers may not be used to browse the Internet, send email, play games/movies, or otherwise engage in activities that disrupt the learning process.  Any student who violates this policy will be asked to leave and will receive a 0 for class participation on that day.  This same policy also applies to iPods, game systems, or any other distracting electronic device.

Plagiarism or cheating of any kind will result in an “F” grade for ANY assignment.

Eating is not allowed in class unless you bring enough for everyone.

Ask permission to bring a guest to class or to use a tape recorder.