Elizabethtown CollegeBusiness Department

BA 495: Corporate StrategyCourse Syllabus - Fall Semester, 2005

"Business is a game--the greatest game in the world if you know how to play it,"

Thomas J. Watson, IBM's founder

Professor: Dr. Petru SanduOffice: 117 Nicarry Hall Phone: (717) 361-1269 (office) E-Mail: sandup@etown.eduOffice Hours: T 8:00am – 9:00am, 1:00pm-2:00pm, Th. 8:00am – 9:00am, 1:00pm-

2:00pm 5:30pm – 6:30pm and by appointmentClassroom: N 104, T, Th. 9:00am – 10:40am

Course Materials:1. Hitt, M. A., Jr., Ireland, R.D., Hoskisson, R.E. (2003). Strategic Management. 6th Edition, Thompson, 2005 (ISBN 0-324-27528-5)2. Readings: the articles are on reserve at the High Library.3. The Wall Street Journal, The Economist, Business Week.

Corporate Strategy is a comprehensive and integrative course and represents the capstone class in the undergraduate business education. This course builds on knowledge acquired in the prior business classes and offers the opportunity to integrate that knowledge through a cross functional approach.

Course Objectives:1. To understand how companies craft and implement strategies which preserve and create sustainable competitive advantage. 2. To enhance the ability to think strategically about different businesses through the transformation of a completely unstructured business problem into a structured one as the path toward identifying solutions and making better decisions.

3. To assess how company’s external environment and internal capabilities affect corporate strategy.

4. To develop persuasive verbal and written communication skills and build up the abilities to work in teams.

Course MethodClasses will be as interactive and challenging as possible. Consider each class as a

simulation of a Board of Directors’ meeting. Consequently, you are required to be punctual, well prepared, energetic and eager to convey your business views.

1

Discussion in this class is a main learning tool. Note that this applies to all class activities: lectures, case studies, team and individual exercises, and executive speakers’ presentations. For a successful learning experience, timely reading, study, and active class participation are essential. All chapters, cases and other readings should be completed BEFORE class on the dates assigned. This allows for meaningful discussions during classes. As a result, you will have the opportunity to involve yourself in the class discussion and to ask questions. To facilitate the discussions, I provide in the syllabus the questions that cover the most important topics for each textbook chapter. During the semester, you will work in teams on two cases covering key issues in corporate strategy. You are required to write for both cases a team report. In addition, a team consulting project (industry/company analysis), an individual presentation, and three examinations are planned during the semester.

In business world, if you go beyond a certain deadline you can miss valuable opportunities. Consequently, late assignments will not be accepted and students will receive zero points. “Getting behind” is usually fatal in any class and Corporate Strategy is certainly no exception to this general rule.

Academic MisconductEthical behavior is fundamental for your future business career and academic

integrity is the right way to prepare for that. Students are expected to hold and abide by the Elizabethtown College Pledge of Integrity. The pledge reads: “….we promise to represent as our work only that which is indeed our own, refrain from all forms of lying, plagiarizing and cheating.”

Electronic Communication

Course announcements will be made using the email address listed with the Campus directory. If you are using a different email address, you should contact me as soon as possible. Make sure you periodically clean out your e-mail inbox.

Class Attendance and Participation Due to the strong positive correlation between a good grade and a good attendance

and participation, you should make every effort to attend all class meetings. Student attendance is a necessary but not sufficient condition for a positive evaluation of class performance. Each of you is an important part of the class. Any absence will affect the class environment and interactivity. During the semester, you are encouraged to check with me the evaluation of your class participation. Attendance will be taken at each class.

Arriving on time to each class meeting is an essential part of your class attendance. Lateness to class will negatively affect your total grade. Punctuality is a sign of respect for both the professor and colleagues.

A major portion of your final grade comes from class participation. Active class participation is fundamental to your success. The classroom environment is the ideal place to learn how to develop creative thinking abilities and to express your thoughts more effectively. Forms of participation are answering questions, asking pertinent questions and sharing examples, insights and ideas that demonstrate the ability to think “outside the box.” The participation degree will be assessed as:

2

- Active participation: constant, qualitative participation that proves careful study of the assigned materials and the ability to apply the knowledge and to offer creative points of view.

- Partial participation: Less intense participation which might prove less study and motivation.

- Passive participation: Some comments from time to time. - Lack of participation: No contribution to the class (ZZZZZZZZZZZZ...…. approach).

If a student accumulates an absentee record of more than two classes, the individual is liable to be penalized 25 points for each additional absence.

Case Study ReportsThe case study is an excellent learning method. A case will help understand the

specific corporate strategy challenges and build essential decision making skills. For each case study, students working in teams will turn in a report of maximum two pages (Times New Roman, 12- font size, single spaced, and one inch margin). One extra page is allowed for tables and figures. You should address each question individually and not just provide a general answer for all requested questions. The report is due at the beginning of each class with case discussion. Students are expected to use the concepts and tools presented in class and studied from the textbook and readings to support their ideas. All written assignments must be clear, concise and proofread for both spelling and grammar errors. This is critical not only to your success in this class but also to your business career.

Consulting Project: Industry/Company Analysis PresentationStudents will be assigned to a team of four-five students to work on an

industry/company analysis project. Each team will act as a consulting unit for the analyzed company and you will work on this project the entire semester. This assignment is very much research oriented, an in-depth analysis and you should consider yourself as part of a consulting team that works for a client. Each team will make a maximum 20-22 minutes class presentation and will turn in a paper of maximum 15 pages with no limit of pages for annexes, single spaced, 12-point font and one-inch margins. Each presentation will be followed by 15-20 minutes Q&A. The written report and the presentation’s slides are due for all teams on December 1 that is the first day of presentations.

The attendance during presentations is compulsory. Business attire is mandatory for presentations. All group members must have a speaking role in the presentation.

Corporate Strategy Challenges (CSC): Individual presentationThis is an individual oral assignment (CSC presentation) where each student will

introduce the class to some strategic challenges and initiatives of a company or industry. Make sure you state the key strategic issues that are to be presented. The presentation should last about 8 minutes and some presentation tools such as PowerPoint should be used. On the first slide, include your name, date and the topic of the presentation and, usually, on the last slide include your sources. The slides should be sent to the instructor by email before the presentation. Each presentation will be followed by 5 minute Q&A. Consider this exercise as a rehearsal for your team presentation and a great learning experience for the whole class.

3

Guest SpeakersTwo or three guest speakers will visit the class. A feedback paper of one-two pages will be required after each visit. The assignment will be due next session. The paper should include what you assess as the most important takeaway lessons. Examination:

The examinations will be a combination of multiple choice/true false questions and a short case study. All examinations will be closed book and closed notes. Make-up policy

If you miss an examination for a valid reason with documentation, you will receive an excused absence. Those students receiving an excused absence will be given a make-up examination.

Team Work and Peer EvaluationStrong entrepreneurial teams play a critical role in new ventures’ success. As part of a

team of 4-5 students, you will be expected to design and endorse a commitment contract that specifies the rules of the team work, i.e. meetings, responsibilities, deadlines and feedback. A key responsibility in this class is to honor your team contract’s requirements.

A part of the final grade will be derived from group members confidentially grading their peers for the fulfillment of their team agreement. Each member of the group will submit via e-mail, by December 1, the number of points awarded to each member of the team, including himself/herself, (out of the 80 points) and a brief comment on their group members. The evaluation form will be sent to you by email. Peer reviews are taken very seriously in this class.

Criteria for Evaluation of Written Assignments

All the written assignments must be typed, 12 points, “Times New Roman” font, single spaced with a 1’’ margin on all four sides within the number of pages indicated in the syllabus.

An “A” paper should prove:- a thorough analysis of the key issues with the ability to apply and integrate the

course’s concepts - appropriate structure with a logic flow of ideas- relevant presentation and style with an excellent usage of the English language.

Students with Disabilities

“If you have a documented disability and need reasonable accommodations to fully participate in course activities or meet course requirements, you must:(1) contact the Director of Disability Services, Shirley Deichert, in the Center of Student Success, BSC 288, (717) 361-1227, deichesa@etown.edu, AND(2) meet with me, the instructor, within two weeks of receiving a copy of the accommodation letter from Disability Services to discuss your accommodation needs and their implementation

Course Grade:The total number of points available is 1000. The final grade will be determined by

your performance on examinations, company analysis presentation, case studies reports, individual presentations, and participation and attendance.

4

The maximum points you can earn from each are:

Participation and attendance 140 pointsIndustry/company analysis 260 points

- Oral presentation 70 points- Written report 180 points

Case studies reports 150 points- Two reports x 75 pointsExaminations- In-class three examinations X 100 points 300 pointsIndividual presentation (CSC) 70 pointsPeer Evaluation 80 pointsTotal 1,000 points

Points received Grade1000 –930 A929 – 900 A-899 – 870 B+869 – 830 B829 – 800 B-799 – 770 C+769 – 730 C729 – 700 C-699 – 670 D+669 – 630 D629 – 600 D-

Extra credit

The Business Major Field test will be scheduled during the semester (http://www.ets.org/hea/mft/discipline.html). Those students who will obtain a score above the average of the class will receive a bonus of 20 points.

Changes in the Syllabus

Some changes in the syllabus might be possible. For example, due to the hectic agenda of executive speakers the sequence of class sessions could be adjusted. Each student is responsible for keeping himself/herself informed with those changes even when the student is absent for class.

5

Petru Sandu BA 495: Corporate Strategy Fall 2005

Sessions1. Tues., August 30

Introduction course and instructor “Psychological Contract”: Syllabus, Course requirements, Grading

2. Thurs., September 1

Myers-Briggs Application: www.humanmetrics.com/cgi-win/JTypes2.asp Bring the results in class for a short presentation Teams will be formed and companies assigned

Consulting project: Industry/Company Analysis Project: The assignment’s structure

CSC presentation: The assignment’s structure

Reading: What’s Wrong with Strategy?, Harvard Business Review

3. Tues., September 6

Chapter 1: Strategic Management and Strategic Competitiveness

How should we define Strategic Competitiveness and Competitive Advantage?

What is the Industrial Organization Model (I/O) and its role?

What is the Resource-Based Model and its role?

Who are the stakeholders?

4. Thurs., September 8

Chapter 2: The External Environment

How to study the general environment (opportunities, threats, and key segments)?

How to perform an industry environment analysis?

What are the key components of the competitor analysis? CSC presentation (1)

5. Tues., September 13

Preparing an Effective Case Analysis Chapter 3: The Internal Environment

6

What are the differences between tangible and intangible resources? Bring examples.

What are the criteria used to determine whether resources and capabilities are core competencies?

Explain how value-chain analysis is used to identify and evaluate resources and capabilities?

CSC presentation (2)

6. Thurs., September 15

Applications

7. Tues., September 20

Chapter 4: Business Level Strategy

What is a business-level strategy?

What is the relationship between customers and business-level strategies?

What are the main types of business-level strategies (Cost, Leadership and Focus)? Describe the rationale and risks of using each of them.

CSC presentation (3+4)

8. Thurs., September 22

Business Field Test

9. Tues., September 27

Guest speaker (1): Douglas Hayes, Director, North American Sales, Air Products and Chemicals (www.airproducts.com)

10. Thurs., September 29

1st Case Study: Brewing Change at Breckenridge Brewery (Case six, pp. 61) Use Porter’s Five Forces Model to determine the

attractiveness of the craft brewing industry Use the SWOT analysis to evaluate the brewing

industry and Breckenridge Brewery Does Breckenridge have a sustainable competitive

advantage? Would you recommend any strategic changes?

Review for examination CSC presentation (5+6)

7

11. Tues., October 4

First examination (from chapters 1, 2, 3, 4 and readings)

Thurs., October 6

Fall Break – No classes (Yes!)

12. Tues., October 11

Chapter 6: Corporate-Level Strategy

What is a corporate-level strategy and why is it important?

What are the types of diversification a firm could follow? Describe the rationale and risks of using each of them.

What are the motives that encourage managers to overdiversify? CSC presentation (7+8) Working session research project

13. Thurs., October 13

Chapter 7: Acquisition and Restructuring Strategies

Why are the merger and acquisition strategies so popular?

What are the reasons for acquisition and what are the problems in achieving success?

What are the restructuring strategy and its common forms? CSC presentation (9+10) Informal class evaluation

14. Tues., October 18

Chapter 8: International Strategy

What are the reasons for international diversification?

What are the four factors for international business-level strategies and the three types of international corporate –level strategy?

What are the five alternative modes for entering international markets? CSC presentation (11+12) Review for examination

15. Thurs., October 20

8

Applications

16. Tues., October 25

Second examination(from chapters 6 ,7 ,8 and readings)

17. Thurs., October 27

Chapter 9: Cooperative Strategy

What is a cooperative strategy and what is the rationale of using this strategy?

What are the three types of strategic alliances and what are the reasons of developing strategic alliances?

What are the strategic alliances that derive from business-level cooperative strategy?

What are the strategic alliances that derive from corporate-level cooperative strategy?

CSC presentation (13+14)

18. Tues., November 1 Chapter 10: Corporate Governance

What is corporate governance?

Why ownership is largely separated from managerial control? How the three internal governance mechanisms – ownership concentration,

the board of directors, and executive compensation are used to monitor and control managerial decisions?

CSC presentation: (15+16) Working session research project

19. Thurs. November 3

Chapter 12: Strategic Leadership

What is strategic leadership and what is the importance of managers as organizational resource?

What is the value of strategic leadership in determining the firm’s strategic directions?

CSC presentation: (17+18)

20. Tues. November 8

Applications

9

21. Thurs. November 10

2nd case study: GE's Talent Machine: The Making of a CEO (on reserve) If GE claims it has been able to develop managerial

talent as a source of competitive advantage, how it has managed to do so?

What is about GE’s system that has made it effective? How much of it is transferable?

Is GE’s talent machine perfectly in balance or does Immelt need to fine-tune it? What recommendations would you give him on the three questions he is contemplating at the end of the case?

CSC presentation: (19+20) Review for examination

22. Tues. November 15

Third examination (from chapters 9, 10, 12 and readings)

23. Thurs. November 17

Guest Speaker (2)

24. Tues. November 22 (Thursday schedule)

Reading : Why Business Models Matter, Harvard Business Review CSC presentation: (21+22) How to Craft a Professional Presentation Consulting project working session

25. Thurs. November 24

No class Thanksgiving Break

26. Tues. November 29

Guest Speaker (3)

27. Thurs. December 1

Submit your team project paper Project presentations (two teams) CSC presentations: (23+24)

28. Tues. December 6

10

Project presentations (two teams) CSC presentation: (25+26)

29. Thurs. December 8

Project presentations (two teams) Course wrap-up and conclusions

December 14 11:00am - 2:00pm Final Exam Period for presentations

Have a great semester!

11