Bus 497A Strategic Management Seminar Orientation and Course Overview Monday, August 23, 2010

Things To Remember Professor: Jeff Stone Office: JH 4222 Phone: Office Hours: Mon 2-3 and 6-7, Thu 1-2 Web Site: and Moodle

Materials Required – Text: Dess, Lumpkin and Eisner. Strategic Management, 5 th Editionhttp:// – The Business Strategy Game: Recommended – Business Week, Fortune Magazine, Wall Street Journal, The Economist

Learning Outcomes Understand what “strategy” means to a firm Identify key strategic issues a firm is facing Synthesize multiple areas of business Make strategic recommendations Communicate your analysis and recommendations in writing and orally

Grading Components Business Strategy Simulation Game … 25% In-class exams (2 at 10%) … 20% Written case briefs (3 at 5%) … 15% Written case analysis/update … 15% Final BSG presentation … 10% Quizzes … 5% Attendance, participation and instructor evaluation … 10% +/- Grading using scale

The Business Strategy Game Online at Eight teams of four students compete in the international “tennis shoe” industry Beginning Wed, 9/15, due midnight 9 yearly decisions, 2 practice decisions 2 online quizzes 2 online 3-year strategic plans Online peer-evaluations Team presentations at the end of the semester

Course Components Exams (20%): 2 multiple choice or short answer, non-cumulative Weekly Chapter Quizzes (5%) Case Briefs 5% each), 2-3 pages Comprehensive Case (GM) and Update (15%) 7-10 pages and 3-5 page update BSG Report (5 pages) and plan for next 3 yrs. and team presentation (10%) Participation and Attendance (10%)

Strategic Management Chapter 1

The Nature of Strategic Management Strategic management: Analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages 1-9

Two Fundamental Questions 1.How should we compete in order to create competitive advantages in the marketplace? 2.How can we create competitive advantages in the marketplace that are unique, valuable, and difficult for rivals to copy or substitute? 1-10

Nine Critical Tasks of Strategic Management -- Tasks 1-5: Formulate the company’s mission Conduct an internal analysis Assess the external environment – competitive and general contexts Analyze the company’s options by matching its resources with the external environment Identify the most desirable options in light of the mission 1-11

Nine Critical Tasks of Strategic Management -- Tasks 6-9: Select a set of long-term objectives and grand strategies that will achieve the most desirable options Develop annual objectives and short- term strategies that are compatible with long-term objectives and grand strategies Implement the strategic choices Evaluate the success of the strategic process for future decision making 1-12

Strategic Management Process Adapted from Exhibit 1.2 Realized Strategy and Intended Strategy: Usually Not the Same Source: H. Mintzberg and J. A. Waters, “Of Strategies, Deliberate and Emergent,” Strategic Management Journal 6 (1985), pp

A Hierarchy of Goals 1-14

Strategy Analysis Model: Internal Analysis DistinctiveCompetences Resources tangibletangible intangibleintangible Capabilities processes processes procedures procedures VRIN CoreCompetenceCompetitiveAdvantage Superior Quality Superior Innovation Superior Customer Responsiveness Superior Efficiency

Strategy Analysis Model: External Analysis ExternalAnalysis Remote External EnvmtSTEEPDG Industry Analysis (Porter) Buyers, Suppliers, New Entrants, Substitutes, Rivalry

Strategy Analysis Model: Strategy Formulation SWOT Results of External Analysis Results of Internal Analysis Business- Level Strategy Corporate Strategy L-CL-C DifferentiationDifferentiation FocusFocus Related Diversif.Related Diversif. Unrelated Diversif.Unrelated Diversif. Generic Strategy Product Dvmt.Product Dvmt. Market Dvmt.Market Dvmt. Concentrated GrowthConcentrated Growth Turnaround Turnaround Etc.Etc.