Professor: Dr. Jerald Smith EMAIL: jrsmith@fau.edu    
Home Office Phone: 954-462-5220  Fax: 954-462-5202
Office Hours: Via Email:  jrsmith@fau.edu

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MAN6721 Strategic Management via web - Summer 2002

In order to take the course this summer, you MUST need it to graduate this
summer. I will be checking records to check on this.

Due to the fact that you do not have to drive to classes, the homework is
much heavier in this course than the regular courses, so be warned!

There will be 8 written cases, a term paper, a simulation audit and 
consultants report at the end of the semester).
Other activities included weekly discussion groups and a case 
presentation by every team via power point and Real Player Audio
Research on the internet is required.
In addition, teams will compete in a business simulation that 
simulates a regional airline.

Texts required for Strategic Management:
Available at Barnes and Noble, and Amazon.Com and other booksellers. 
May be avail at FAU Broward Bookstore at their downtown location..
Call them: 954-762-5204

Smith and Golden AIRLINE: Strategic Management Simulation 4th edition
ISBN #0-13-065488-4 (Only New books are available)


Strategic Management and Business Policy 8TH edition
Thomas L. Wheelen J. David Hunger
Hardback: ISBN: 0130651214
Publisher: Prentice Hall
Buy the hardback only. The paperback does not have cases in it.

Grading based on:
35% Homework Papers 
20% Team Presentation 
15% Threaded Discussions 
10% Peer Papers and Critiques 
10% Simulation-related activities including Audit and peer audit 
10% Term Paper 

Weekly Topics:

Unit 1 : Concepts of Strategic Management; Case Writing                                 
Unit 2 : Corporate Governance and Social Responsibility-Start the Simulation 
Unit 3 : Environmental Scanning and Industry Analysis 
Unit 4 : Internal Scanning: Organizational analysis 
Unit 5 : Strategy Formulation: Situation Analysis and Strategy 
Unit 6 : Strategy Formulation at the Corporate Level 
Unit 7 : Functional Strategies; Selecting the best strategy 
Unit 8 : Implementing strategy: Organizing for a successful strategy 
Unit 9 : Staffing and Directing for Strategic Success 
Unit 10 : Evaluation and Control 
Unit 11 : Entrepreneurial and Small Business Strategy 
Unit 12 : Evaluation and Control 

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Business Ethics resources web site:   http://ethics.acusd.edu/

COURSE DESCRIPTION:

Global strategy, its formulation, articulation and implementation through a review of current theory and practices through readings, case study, dialectic inquiry, and a business simulation game.  The role and responsibility of the general manager as strategist are emphasized to integrate functional business skills in the management of an enterprise.

OBJECTIVES OF THE COURSE:

Management 6721 is a required MBA course and is taken in the final semester of the program. It is designed to improve technical skills by drawing on prior functional course work and fosters new skills related to the strategic management of organizations in both domestic and international markets.  More specifically, this capstone course has these objectives:

 To integrate your understanding of the functional fields and analytical tools studied in other MBA curses. You are expected to interrelate and apply ideas from your total academic and practical experience.

 To develop a clear understanding of the concepts of strategy and policy, especially as it pertains to the global strategic mission of the firm.

 To increase your knowledge of the domestic and global environmental setting of business including the industrial structure in which firms formulate and implement their policies.

 To understand policy issues of implementation and control of strategy.

 To introduce special global issues in strategic planning such as mergers, multi-business corporations, start up, etc.

 To improve your thinking, oral and written presentation skills through analysis and reporting of case situations.

 Summary.  At the end of the course, the student should be able to demonstrate analytical skills, both orally and in writing, in the application of concepts of global strategic and general management as well as the prerequisite disciplines.  This requires the organization of problem situations and the making of informed decisions under conditions of uncertainty.

POLICIES:

1. DUE TO THE HEAVY USE OF EXPERIENTIAL CLASSROOM ACTIVITIES, CLASS PARTICIPATION IS    EXTREMELY IMPORTANT and a heavy proportion of the grade is assigned for class participation.  

2. Many projects will be accomplished in a team. IF YOU CANNOT MEET via the internet with team members on a regular basis, you SHOULD NOT TAKE THIS CLASS. Team per evaluations may be administered during the semester and this evaluation will be factored into the grade.  EACH member of the team is expected to contribute his or her fair share at all times. NOTE: Any problem with group participation/cooperation will result in zero points for the simulation portion of the grade (25% of total grade).

3. Assignments are due at the BEGINNING of class on the date in the syllabus and WILL NOT BE ACCEPTED LATE unless there is a solid reason. Cases and other written material will be graded on the basis of content as well as format, grammar, spelling, and professionalism.

4. Any act of academic irregularity will result in penalties ranging from a minimum grade of F to dismissal. In this course, this would include not properly referencing works consulted, handing in work previously prepared for another class, and copying    work verbatim from another source.

5.  If there is any problem within a group that cannot be reconciled, the instructor reserves the right to place one of more students in another group or a new group.

6. Continued enrollment in this course constitutes unconditional acceptance by the student of these policies.

CASE and HOMEWORK (Written) ASSIGNMENTS

There are 8 cases, one Internet research paper, and a take home final (strategic analysis of a company). In addition, each team will make a audio-visual presentation via the web, lead a weekly discussion, and conduct an audit of their simulation firm. 

Eligibility for an “A” on Analysis Papers

 In order to be eligible for an "A," you present at least two outside resources that pertain either to the company in the case, or to the text material of the week. Note: some web sites carry the history of a company. Merely printing out the history of the company in the case is not sufficient new information to apply. The additional resources/references/information is to be new information. To receive full credit for this work, you must give a brief (2-3 sentence) summary as the third page of tour homework paper. You may, but do not have to, staple the articles to the back of your paper.

An “A” paper will make note of any social responsibility, ethics, or environmental issues in the case, regardless of whether the text or case  denotes these issues.

* In order for the information that you collect to be applied to your analysis paper grade, you must share with the class the contents of your information during the discussion portion of the case presentation. In other words, share with your classmates your new information and help us all understand the company/industry/theory better.

GROUP CASE PRESENTATIONS

Each group will be assigned one case to present during the semester. The presenting team should be prepared with a 20 minute presentation. Students are to ferret out the critical issues being presented by the company and use theory frameworks (from the text) to help develop solutions to these issues.  The incorporation of theory into the presentation should be cumulative for the semester.

 Not infrequently, students wish for more information than is found in a case; they feel that they cannot make a decision without more facts. Do not hide behind that bogey. Business executives rarely have all of the facts that they need; that is why we call it decision-making under uncertainty. And, each case has ample information to enable you to recommend something sensible.  Although extra research is encouraged, be careful not to let the companies subsequent behavior guide your analysis or conclusions; in other words, write the case at the point that it ends.

* Case presentations will be graded on the quality of the analyses and the quality of the presentation.  The presenting group will not be required to submit an analysis paper nor a group paper for that session; however you will submit a disk containing your Power Point (or Presentation Graphics) presentation. Peer evaluations of the presentation will be made; a portion of your class participation grade will be based on the level and detain of feedback to the presenting team.

* The presentation team should make note of any social responsibility, ethics, or environmental issues in the case, regardless of whether the text denotes these issues.

*  Specific students may  be assigned each week to rebut and/or discuss the case presentation conclusions.  This rebuttal/discussion "group" is responsible for closure on the case.  That is, they will synthesize the issues being debated and provide closure on an extemporaneous basis.

THE BUSINESS SIMULATION

A business simulation is an important aspect of the strategy class. It gives you the opportunity to practice stratey as well as learn about it. Student teams will be expected to treat the simulation assignments with the same degree of intensity as the case solutions.  You may configure and run your company in any way that makes sense to you.

* Decisions are due via Email at 12am every Monday night. If decisions are not in, I will use the previous period’s decisions.

Extra Credit:  Projections, forecasts, and various analyses can be done on any standard spreadsheet (QUATTRO, LOTUS, etc). It is your responsibility to build any models that you choose for decision support. The proforma work sheets in the Player's manual can be easily adapted to a spreadsheet program. This is an extra credit project so the individual that prepares and submits such work should place his/her name prominently on the work when submitting each week.

CONSULTANT'S REPORT TO THE BOARD OF DIRECTORS (Simulation Audit) - End of Semester

At the end of the semester, each team will assume the position of an outside consulting firm and do a management audit of their own simulation firm.  The audit will be presented formally to the class, who will act as the firm's board of directors.  The presentation will include the firm's strengths and weaknesses, problems solved during the semester, and issues and/or problems still facing the firm. Recommendations for future strategy will be included. Consult the simulation manual for additional ideas. The team should use any audiovisual aids and handouts necessary to enhance your presentation. There are instructions in the Student Manual which will provide guidelines for preparing for this audit.  A written report to the instructor is NOT required. Each team may have one, two, three or all team members make the report.

 The report may not exceed 5 minutes. For each minute the team runs overtime, the grade will be reduced 10%.

THE STRATEGIC ANALYSIS PAPER (Take Home Final Exam)

Each student will prepare a short strategic analysis for a company of your choice. The company selected does not need to be  approved by the instructor, but the student must include a statement with the paper that they have not used the company that has been chosen in another class. In order to obtain sufficient information, it is suggested that you consider a publicly traded company.  Use the following format; and for ease of reading and to save time, it is recommended you use headings/subheadings and make your points using lists instead of paragraph style. However, you may use paragraph style if you choose.

Format of the Final Paper

 A. Title Page (but no table of contents)
 B. Executive Summary (Key findings; maximum 1 page) The content does not include any company history. The purpose       of the executive summary is the inform the reader of the key elements in the paper.
 C. Industry Analysis
      1. Industry Structure, noting any changes in the environment in the industry
      2. Strategic Group Map (Answers: Who are the firm’s competitors and what at their strategies?)
           Check Standard and Poor’s for industry information
      3. This firm's competitive position in the industry
 D. Environmental Scan (external forces/stakeholder)
      1. Most important Opportunities
      2. Most important Threats
 E. Company
      1. Key Strengths
      2. Key Weaknesses
      3. Short statement on the firm’s financial condition
 F. What change or changes in strategy do you recommend?
 H. Endnotes (references)

To be considered for the grad of  “A” a paper

1.  will  utilize the theories and topologies in the text and readings to describe and explain the firm's actions (just as your weekly papers have done), i.e., "emergent strategy due to ...,"A machine organization because...,"

2. should make short mention of any global, social responsibility, ethical, or environmental factors which are affecting the firm or which may affect the firm in the future.

3. will contain pertinent resources and references to add to the readers knowledge about the firm and its industry.    (While the firm’s website may be used as ONE reference, the remainder must be external for credibility.)

FORMAT OF THE FINAL PAPER

The paper must consist of no less than 5 references and should be approximately 8-9 pages in length, including title and reference pages (double-spaced). You may use no more than two internal documents (documents from within the company itself). The paper is aimed at creating a brief industry study and a company profile. (If your paper exceeds 8-9 pages the grade will not be lowered nor will it be raised. The number of pages is a guideline but not a fixed rule.)

This paper is due at the BEGINNING of class on the date shown on the syllabus.  In fairness to others who turn work in on time, there is no grace period.  The grade for a late case will be reduced by one half letter grade for each day that it is late BEGINNING ON THE DUE DATE.

If you pick a conglomerate (i.e. General Electric) choose ONE of the businesses (e.g. industry) to research (i.e  major appliances). Show how that business contributes to overall organization success or alternatively, why it should be divested.
Use examples, tables, and graphs to illustrate your paper. For simplicity in preparation, the tables and graphs may be placed on separate pages instead of placed directly on a text page. Pages must be numbered.

A reference list should be attached at the end. Any standard method of listing references is acceptable.

* Use up-to-date references for your paper. Information that is greater than 3-4 years old is outdated.

CLASS PRESENTATION OF THE STRATEGIC ANALYSIS PAPER

This will be an informal presentation of your paper.  You will be allotted a maximum of 4 minutes; therefore you can only present the MAJOR factors.  The grade will be reduced one letter grade if you exceed the time limit.  You may use only  3 x 5 cards and MAY NOT read your talk.

1. A BRIEF history of the company if it is not well known.
2. The Key Opportunity in the industry
3. The Key Threat in the environment
4. Industry Analysis and Structure
4. Key Company Strength
5. Key Company Weakness
6. Key Recommendation's)
 
 

the next section is a sample of a solid case for a grade of “B”

When using double spacing, it is equal to 2 pages

If submitting additional resources, write a 2-3 sentence summary of the article.

Extra resources do not include the firm’s home page. One of the two
required articles must be from other than the firm’s website. Do not use a cover sheet. Place your name in top left corner with name of case only. STAPLE!

Mintzberg defines strategy as “five Ps:”

1. Strategy as a plan – Mr. Honda and Mr. Fujisawa’s intention to position their company to continuous growth and expansion is a strategy-plan, because it meets two essential characteristics: it is (a) made in advance of the actions and (b) it is developed consciously.

2. Strategy as a ploy – In the example above, I have defined the company’s expansion strategy as a plan.  However, Mr. Fujisawa’s use of creative but risky trade financing (when the production has been allocated to dealers able to pay in advance) to see the company through the expansion is a ploy, since his intention is to outwit the government who has denied the support for the company as well as competitors who have closely controlled Japan’s equity markets.

3. Strategy as a pattern – Mr. Honda has consistently entered new untapped niches of the market by introducing efficient, small but powerful engines.  While his success is the result of constant innovation, we cannot assume that there is an intended plan behind this pattern.  Rather, Mr. Honda’s total obsession with motors and engines may be the result of his extraordinarily innovativeness.

4. Strategy as a position – New entrant, Honda, has found its place in the competitive and capital intensive environment of automobile world by being “willing to take risks and move fast,” while other car makers “appeared frozen in indecision.”

5. Strategy as a perspective – “Mr. Thunder’s” commitment, ambition and methodologies have defined the personality of the organization and have been shared by employees.  The unique polices have intended to stress equality and respect for an individual, and the unique “expert system” structure of the organization has intended to develop an individual’s creative potentials.  The organization can be characterized by “ambitious and youthful” collective mind.

According to Quinn, Honda’s strategy has proven to be successful, because:

  Honda has maintained the initiative – e.g., Honda’s engines have been always designed to both offer the highest internal efficiency and the greatest external merits in terms of cleanliness.  This initiative has paid off when in 1975 his engine has proven to be the only one able to meet U.S. Air Quality Standards.

  The company has employed concentration  - e.g., Honda has concentrated on producing the  key components such as engines and on R&D, while non-critical parts have been always outsourced.

  The company has stayed flexible - e.g., unlike other manufactures, Mr. Honda has always tried to introduce several designs instead of concentrating on one “winning design.”  This has created a situation where if one design fails (1970 Honda 1300cc model), another design may pick up (Honda Civic).

Wrapp identifies five skills that successful managers exhibit:

1. Keeping well-informed – e.g., Mr. Kawamoto has personally visited international facilities, suppliers and dealers, and he has done it just in time to prevent the “big company disease” and loss of touch with customers

2. Focusing time and energy on the issues that have the long-time impact on the company – Mr. Kawamoto has focused on long-term global strategies, operations and R&D, while regional operating offices have been responsible of line operations and have had the authority for regional development, production, sales and marketing.

3. Sensing how much direction the organization is willing to tolerate – Honda’s work standards are willingly adopted by all its employees; the trick here is however that those work standards are written in conjunction with the employees.

4. Giving the organization a sense of direction with open-ended objectives – Honda’s objective to “sell cars on consistent value and to proceed with ambition and youthfulness” gives the stakeholders a perception of clear direction, yet the statement has enough room for flexibility (to take into account changing conditions in the external environment).

5. Implementing the programs gradually (instead of pushing through the total packages) to move the organization towards the goals – Mr. Fujisawa, the head of marketing and finance, has gradually moved the company towards producing for untapped market for smaller, safer bikes (Cub, Super Cub) despite the owners obvious obsession with powerful racing motorcycles.

Hamel states that companies with ambitions that are out of all proportions to their resources and capabilities (e.g., Honda’s late entrance in the automobile industry, Mr. Honda’s lack of specialized technical knowledge and adequate funds) as well obsession with winning (e.g., Honda repeatedly entered markets where other corporate giants like Toyota failed) can rise to global leadership (e.g., Honda has not only survived over the years but also prospered and has gained significant market shares).