MGT Strategic Management Walter J. Ferrier, Ph.D. Office: 455X Tel: Web:

Comments from the Fortune 500 F Need to change culture … need big picture view F Keeping track of competitors / customers is everyone’s job F Cross-functional integration –Strategy –Problem-solving –Decision-making F Good ideas get killed on their way bubbling up … because they bubble straight up instead of circulating around first. (same with information flows)

Course Perspective: A View from the Top Top Management Functional Management Marketing Production R&D Logistics Acct./Fin. Value-adding Activities

Medium-Term Benefits Top Management You

definition: Strategic Management -- The set of commitments, decisions, and actions required to achieve competitiveness.

Strategic Management: Course Content F What is it? What do CEOs do? F Analysis of industries and competition F Business-level strategy: How to compete F Competitive dynamics: Head-to head rivalry F Corporate-level strategy: Managing the portfolio F Strategic management of the multinational firm

Thrive on Dynamism Management as “art” or “craft”. Management as “science”. Need for Stability MGT 499 and Your Personality?

Your Expectations F What do YOU want out of this course? –Useful frameworks –General knowledge –Ability to integrate –“Big picture” perspective –??? F What motivates YOU ?

Pedagogical Approach F Real-world business cases & current events F Textbook readings F Videos F Written and oral case report F Web-based strategy simulation F Class discussions/participation

Grading

Books and Readings F Strategic Thinking (De Kluyver) F CAPSTONE™ Subscription (...details later) F Johnny Print Case/Readings: Ryka, etc. F Harvard Business School (HBS) Case Packet:  IBP and Meat Industry  Cereal Industry  Airlines Industry in 1995  Starbucks  Apple in 1999  Red Hat - Linux  Webvan  Pennzoil  Monsanto: Age of Biotech  Monsanto: March into Biotech  DNA Plant Technology  How to fight a price war

LISTSERV F Subscribe: 1. Send to: 2. Put the following text in the message body: subscribe MGT499DAY Hal Mumme 3. Reply to confirmation with ‘ok’ in body F Sending Mail: to: F See instructions on MGT 499 web page

No signature!!

Internet Resources F F cbs.marketwatch.com F cnnfn.com F F F others

Keys to Case Study F Issues and outlook: What’s the problem? F Information: What’s relevant? F Alternative solutions: What are the choices? F Decision criteria: How to decide? F Making the call: What is best solution? F Action plan: Steps for implementation? F Evaluation and impact: Will it work? * See sample case on course website

Keys to Participation How... F Identification of key issues F Significant analysis F Logical synthesis of discussion points F Identification of new alternatives F Suggestion of plan of action F Identification of key assumptions F Meaningful summary When... F “Open” a case F Contribute to middle F Linkage with text reading F Summary, synthesis, resolution, or closure F LISTSERV discussions

Evaluating Participation Quality of Comments Frequency and Volume of Comments

Strategic Management in the News F Low price leader / Price cutting F Differentiated player / Unique product or marketing approach F Market pioneer / Innovator, first-mover / New products, etc. F M&A / Restructuring / Turnaround F Alliances / Joint ventures F New international markets / off shore production F New plants / equipment / efficiency processes

Corporate Social Responsibility Project/Briefing F Influence of socio-political factors on strategy –Genetic engineering-based industries/firms –Napster –Firestone –Pharmaceutical industry/firms –Gun manufacturing industry/firms –Microsoft vs. Netscape –Tobacco industry/firms –Mitsubishi