Course Syllabus. LUCIO CASSIA Professor of Strategic and Global Management STRATEGIC MANAGEMENT

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1 LUCIO CASSIA Professor of Strategic and Global Management Chairman of CYFE Research Center for Young and Family Enterprise University of Bergamo STRATEGIC MANAGEMENT Course Syllabus Lesson STR T00 - Course Number Fall 2014 / Spring 2015

2 Course name Strategic Management (code 37056) Faculty Prof. Lucio Cassia Dott. Mara Brumana,PhD Ing. Paolo Pressiani (course assistant) Course page Facebook Global Strategic Course terms Theory (6 ECTS) Sep, Dec, Practice (6 ECTS) Feb, May, Class hours 8:30-12:30 Tuesday classroom 10, bldg A, Department of Engineering 2

3 Strategy The success of a company over time is described by its strategy. The future stands on the ability to find the direction to recreate the conditions for growth, even under uncertainty and a very fast global changing environment. Strategic change and complexity management are the main issues of the new millennium both for economics and business. This course introduces the concept of strategic management and considers the basic direction and goals of an organization, industry and market structure, and organizational strengths and weaknesses in highly uncertain business environments. Moreover, a great emphasis is put on the strategic evolution driven by the fast technological disruptive innovation, a kind of innovation with the power to undermine traditional strategic plans in a matter of months or even days. Therefore the course deals with the strategic game-changing paradigms, because the devastating innovation holds great potential for those who can quickly learn the new rules of unencumbered development, un-constrained growth, and undisciplined strategy. 3

4 Cloud storage price wars continue: Dropbox 90% prices drop (Aug 27,2014) [1 / 3] On Aug 27, 2014 Dropbox slashed its price as the cost of a gigabyte nears zero. They used to cost $9.99 per month for 100GB. Under the new scheme, Dropbox plan is $9.99 per month for 1TB of file storage. Prices were cut by 90% as the online storage firm looks to compete with the likes of Microsoft and Google Drive and the coming Apple icloude Drive. On March 2014 Google dropped the price of 1TB storage on Google Drive by 80% to $9.99 per month. Microsoft charges $2.50/ month on OneDrive or $6.99 per month with an Office 365 subscription. On June 2014 Apple unveiled icloud Drive, a multiplatform service set to roll out with OS X Yosemite and ios 8. Price will be unveiled on Sep 9,

5 Cloud storage price wars continue: Dropbox 90% prices drop (Aug 27,2014) [2 / 3] Dropbox features very easy to use sync apps work well on most platforms get nice photo sharing features attach a password to shared links set expiry dates remotely wipe content if the phone gets stolen good brand with 300 M users Main competitors Microsoft offers Office 365 along with 1 TB at a lesser price Google has better integration with other Google services and offers more options in terms of pricing Apple's forthcoming icloud Drive will presumably be better integrated with Apple's ecosystem 5

6 Group Task: Dropbox prices cut by 90% is a suicide strategy? [3 / 3] What s the competitive advantage of Dropbox? How it will be sustainable on the long-term? Will Dropbox survive as a company or it will be acquired by a powerful incumbent? Storage is becoming a commodity, services are not Which strategy in the near future for Dropbox? Prepare 1-2 slides. You have 30 min of time 6

7 Strategic Management Strategic Management is the set of managerial decision and action that determines the long-run performance of a corporation. It has now evolved to the point that its primary value is to help the organization to operate successfully in a dynamic, complex and unpredictable environment. Corporations must develop a flexible approach shifting from one dominant strategy to another. Strategic flexibility demands a long term commitment to the development and nurturing of critical resources. The company should act as a Learning Organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights. Learning organizations avoid stability through continuous self-assessment and experimentations. 7

8 Strategy and Change + COMPANY Organizational dimension Organization & action (t) - Difference Measure & Correction Economic dimension Measure & feedback Market Demand (t) MARKET Market Supply (t) Strategic dimension is related to Change and therefore to the time (t) 8

9 Case studies In addition to theories, many industry and business case studies are discussed during the classes. The cases are written for business programs worldwide and focus on actual problems and decisions companies face. Case studies are powerful tools to investigate a topic on which you want to focus combining a qualitative and a quantitative way. A main issue is the relationship between strategy, evolution and long-term performance. You will learn analytical techniques to check the competitive position of a firm, evaluate business strategies, and identify and analyze specific business options. These concepts and frameworks will help you to face complex and unstructured problems in business strategy, in order to provide a solid foundation for managerial decision making. Students are asked to download and read the material for a very proactive in-class discussion of the case. 9

10 Course topics Competitive Strategy Strategy fundamentals Sustainable competitive advantage Linking learning to strategy formation Global Strategy Redesign strategy in the Globalization Age Facing complexity in a global environment Re-shoring initiatives and back-sourcing strategy Entrepreneurial Strategy Entrepreneurial strategies and start-ups The digital transformation Managing strategic change and uncertainty Strategies in the Age of Disruptive Innovation Beyond Porter s strategic plans Disruptive technologies and the Innovator s Dilemma Managing Big Bang disruption 10

11 Reference texts Contemporary Strategy Analysis Robert M. Grant Blackwell Publishing, ISBN , 2013 Entrepreneurial Strategy Lucio Cassia, Michael Fattore, Stefano Paleari Edward Elgar, ISBN ,

12 Online resources Online resources are available to the students enrolled on the course (STR + hex thousands code-d) Lessons Case studies Reference material (scientific papers, reports, podcasts, interviews, etc.) Lectures by visiting executives (entrepreneurs, managers, etc.) The online resources don t replace texts and lessons. The resources guide to study, select the bibliographic material and track for further investigations. Students are required to join the Facebook Group Strategic Information about lessons, invited executives guests conferences, discussions, events, etc. will be timely provided. 12

13 Exam for attending students (sessions June to September) The exam will cover both Theory and Practice module and require you to demonstrate your mastery of the topics, tools and frameworks covered in this course. For the first three sessions (Jun to Sep) the exam will be organized as follows: Section Who Grading plan a. Theory Individual 35% b. Project work Group (4 students) 65% c. Participation Individual Add 0 to +2 Project work and theory exams will be separately kept valid only for the first three sessions (Jun to Sep). For the next exam sessions both parts of the exam must be passed within the same session. An additional optional theory exam session is reserved to the attending students in January (end of the first term). It will be kept valid till the September session. 13

14 Exam for attending students (sessions Nov to Apr) and for not attending students The exam will cover both Theory and Practice module and require you to demonstrate your mastery of the topics, tools and frameworks covered in this course. The exam will be organized as follows: Section Who Grading plan a. Theory Individual 35% b. Project work Individual 65% Students are required to contact the Faculty to be assigned a project work on individual basis. Theory exam is based on the reference texts as well as the online resources. Both parts of the exam must be passed within the same session. 14

15 a. Theory The assessment of theories, models, methods refers to the knowledge of theoretical topics discussed during the course, including scientific papers, reports, podcasts, interviews and lectures by visiting Executives. Oral and/or written (multiple choice test and extended answers) exam 15

16 b. Project work The project work analyzes an industry, a company or a set of companies, a strategic initiative undertaken (e.g. a merger or an acquisition), a strategic situation faced by a company or industry (e.g. a change in market demand or technology) or a global trend (e.g. a competition shift). You are required to apply tools and knowledge of strategy covered in this course to the real economic environment. The project consists of a written report (Italian or English) and a final 30 in-class presentation. Includes sources, references, papers and other material. Innovative ways of presentation, presentation skills, original ideas, clarity, focus on the topic will be evaluated. A link to download the project work package (Dropbox, WeTransfer, etc.) have to be sent to the faculty one week before the discussion. 16

17 c. Attendance and proactive participation This course is structured to be interactive with the class. Active participation is greatly appreciated. Contributions to the discussion (in class and/or through Facebook) and ideas from the students are encouraged. Informed and engaged participation is an essential part of this class and is expected from everyone. Active engagement means that you listen carefully to the comments of your peers and seek opportunities to make comments that move the class discussion forward. You are also encouraged to critique the argument, to experiment with new ideas, to propose links to real cases. Attending the course is strongly recommended for all students. You are encouraged to participate to every class. 17

18 c. Attendance and proactive participation Active participation may be granted on an individual basis with an additional grade. Ground Preparation: Knows basic case or reading facts, but does not show evidence of trying to interpret or analyze them. Offers straightforward information without elaboration. Does not offer contribute to discussion > final grade +0 Good preparation: Knows case or reading facts well, has thought through implications of them. Offers interpretations and analysis of case material to class. Contributes well to discussion in an ongoing way: responds to other students' points, questions others in a constructive way > final grade +1 Excellent preparation: has analyzed case exceptionally well. Offers analysis, synthesis, and evaluation of case material, e.g., puts together pieces of the discussion to develop new approaches that take the class further. Contributes in a very significant way to ongoing discussion: responds very thoughtfully to other students' comments, suggests alternative ways of approaching material > final grade +2 18