BASM550 MM: STRATEGIC MANAGEMENT Course Outline. COURSE INFORMATION Program: MM Course: Strategic Management

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1 COURSE INFORMATION Program: MM Course: Strategic Management Course code: BASM550 MM Period: 2 (Fall 2014) Instructor: Steven Minns BEng CEng MICE DIC MBA steven.minns@sauder.ubc.ca Phone: Office hours: By appointment (please or call me to set up an appointment whenever you need help or advice) Class days: Tuesdays and Thursdays Class times: 2-4pm Course duration: October 20 November 29, 2014 Classroom location: HA337 INTRODUCTION What makes firms successful and what makes them fail or underperform? Strategic management provides some answers to these fundamental management questions. It involves analyzing a firm s resources and its industry environment to deliver competitive advantage over other firms. The outlook is long-term and the most effective actions often depend on the actions of others. Furthermore, success in the future may well require the firm to change in radical ways and to target different markets with different products and services. This course will give you a holistic view of the firm and will provide you with an understanding of business and corporate strategy. COURSE OBJECTIVES By the end of the course, you will be able to: Understand principal concepts in strategy theory and practice Apply these concepts to analyze markets and firms in real life situations Design strategies that enable firms to achieve and sustain competitive advantage Have awareness of some of the challenges inherent in implementing new strategies Discuss strategic issues with colleagues and be able to offer critical insight The course objectives are described in more detail within the subsequent section Course Structure. EVALUATION As the teaching philosophy for this course emphasizes critical analysis of strategic management concepts in real life situations, a case based study method is used in conjunction with a strategy simulation, MikesBikes. The evaluation reflects this

2 Case-based assignments 20% Class & online participation (cases and blogs) 20% Simulation (individual assignment) 20% Simulation (group reports and performance) 40% Case-based assignments The course package contains four case studies and a series of questions for each. Prior to the class when we discuss the case (refer to the schedule), you are required to read the case and answer the assignment questions. Please keep your answers to one or two letter sized pages. You are encouraged to discuss the questions in groups but the assignments are to be individually prepared and are to be submitted via Connect. No marks can be awarded if a submission is not made (unless you have a genuine reason and you discuss this with me beforehand). Class & online participation The ability to contribute positively and undertake critical analysis in a group environment is an essential skill in business. Quality of contributions in class is more important than the quantity and listening is crucial in this respect. Building on, or critically evaluating, a classmate s point is an example of a good contribution. Referring to material covered in lectures during the case study discussions, as well as sharing your personal knowledge and experience of firms that relate to the material being covered, will also be viewed positively. Non-attendance at class will result in considerably lower grades (unless you have previously discussed this with me). Marks for participation will also be awarded on the frequency and quality of contributions to the course blogs. You should contribute to a blog a minimum of 1-2 times, otherwise your participation grade is likely to be reduced. If you feel that you are not getting the opportunity to contribute in class, use the blogs to ensure you are being heard. Low class participation should be compensated by greater blog activity. As with class participation, marks for blog contributions are awarded for applying course material to discussions and for building on or critically evaluating previous comments. Simulation Throughout the course you will be participating in a strategic management simulation, MikesBikes. You will form part of the management team of a bicycle manufacturing company making all the key functional decisions involving price, marketing, distribution, finance, operations, HR, and R&D. You will compete against others in the course in an online multiplayer environment. To be successful, you will need to formulate a comprehensive strategy and then adapt it as you adjust to the dynamic marketplace. You will get experience of analyzing real financial reports and market data. The simulation emphasizes the importance of planning, implementation and evaluation of strategy. Marks for this part of the evaluation will be based on a short individual report and a group report that you will prepare as the simulation progresses. More details to follow

3 You will start by running the simulation individually to gain familiarity with the business, the market and the interface. After week 1, a short individual report is due that summarizes your experience (20% of final grade). Based on the grades of the individual report a number of CEOs will be selected who will then pick management teams through a draft system. Then, during week 2 you will start working with your fellow board members for the group stage. Shortly after, you will submit a strategic plan which outlines your core strategy for the weeks ahead (this part of the group project is 15% of your final grade). Towards the end of the course you will submit a final group report based on your experience (15% of your final grade). 10% of the final grade is determined by your performance in the simulation (the amount of shareholder value created) and the group that generates the highest shareholder value will be awarded a bonus of 5 percentage points to their final grade for the group work. COURSE STRUCTURE Part 1: Industry and competitive analysis The start of the course will involve an introduction to what strategy actually is. Using economic and management principles, we will then consider methods to analyze the competitive landscape that firms operate in. You will learn how to determine industry attractiveness (i.e. detect profit opportunities; how to identify potential threats to a firm s profit making abilities; and how to select an appropriate strategic position in relation to an existing industry structure). Part 2: Core competencies In this part of the course, we will explore the relationship between competitive advantage and firms internal capabilities (also called core competencies). We will look at how firms develop unique and superior resources and capabilities that are difficult for other firms to replicate. Part 3: Corporate strategy and implementation This section focuses on common strategic actions that alter the scope of the firm, particularly diversification, mergers, acquisitions and alliances. We will explore how organizational structures and processes influence strategic outcomes and the role of managers as organizational leaders and architects. Part 4: Strategy and innovation The ability of a firm to innovate, whether it be through new product development or through organizational innovation, is crucial to sustaining competitive advantage. We will begin by looking at some of the problems that successful firms face and we will consider how firms can get in front and stay ahead of the pack. COURSE MATERIALS Required course package This is available from the UBC Bookstore. The package includes all of the cases and the case assignments. The package includes the $42 fee for the simulation. Recommended textbooks Grant, Contemporary Strategic Analysis, 2004, 5 th Ed Barney and Hesterly, Strategic Management and Competitive Advantage 4 th Ed. Pearson Saloner, Sheppard and Podolny Strategic Management, Wiley

4 There is no required textbook as such but you are strongly encouraged to obtain one of the recommended textbooks above to supplement the lecture material (there are copies in the library and they can be purchased from the usual sources). The references in the course schedule are based on Grant but the other two books have similar sections. For an economics perspective on strategy, I recommend: Besanko, Dranove, Shanley and Shaefer, Economics of Strategy 4 th Ed. Wiley - 4 -

5 MAIN SCHEDULE Class# DATE CLASS TOPICS READINGS Class 1 Oct 21 Introduction Class 2 Oct 23 Part 1: Industry and competitive analysis Understanding competitive dynamics Porter, Michael E. (1996). What is Strategy? Harvard Business Review, Nov/Dec 1996, Vol. 74, Issue 6, p61. Grant Ch3 Class 3 Oct 28 Part 2: Core competencies Resources and capabilities Case Southwest Airlines Grant Ch5&7 Class 4 Oct 30 Cost and differentiation advantage Grant Ch8&9 Class 5 Nov 4 Case Matching Dell Besanko et al-ch2 Class 6 Nov 6 Part 3: Corporate Strategy and implementation Alliances, M&A s, corporate diversification Nov 11 Remembrance Day No class Grant Ch13 Besanko et al-ch3 Markides, Constantinos C. (1997). To Diversify or Not to Diversify. Harvard Business Review, Nov/Dec 1997, Vol. 75 Issue 6, p93. Class 7 Nov 13 Case - Gucci Group N.V. Class 8 Nov 14 tbc Make up class Corporate strategy: Globalization and international strategy Grant Ch14 Class 9 Nov 18 Part 4: Strategy and innovation Industry evolution Creating competitive advantage through innovation Grant Ch10&11 Disruptive Technologies: Advances that will transform life, business and the global economy McKinsey Global Institute (May 2013) - 5 -

6 Class 10 Nov 20 Case Bang and Olufsen SIMULATION SCHEDULE Class# DATE DEADLINES Class 1 Oct 21 Individual familiarization Class 2 Oct 23 Individual familiarization Saturday October 25 Individual report due Class 3 Oct 28* Teams formed Group phase commences (October 28) Class 4 Oct 30 PRACTICE Multi-Player Rollover 1: Deadline Thursday October 30 Class 5 Nov 4* Class 6 Nov 6 PRACTICE Multi-Player Rollover 2: Deadline Sunday November 2 RESET Monday November 3. Multi-Player Rollover 1: Deadline Wednesday November 5. Group strategic plan due before Thursday November 6. Multi-Player Rollover 2: Deadline Sunday November 9. Class 7 Nov 13* Multi-Player Rollover 3: Deadline Tuesday November 11. Class 8 Nov 14 tbc Multi-Player Rollover 4: Deadline Thursday November 13. Multi-Player Rollover 5: Deadline Sunday November 16. Class 9 Nov 18 Multi-Player Rollover 6: Deadline Tuesday November 18. Class 10 Nov 20* Discussion and announcement of winner Group report due Tuesday November 25. *case analysis class Please note that this course outline may be subject to change