1. MGT 699 - Business Policy and Strategy WALTER J. FERRIER, Ph.D. Tel: 257-9326 E-mail: walter.ferrier@uky.edu

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

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

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

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

6. Medium-Term Benefits at Big Inc. Top Management Don’t let you this be you. ?

7. Interested in Entrepreneurship? Small business management … Small business management … Start-ups … Start-ups … YOU will be a top officer, strategist, decision-maker: YOU will be a top officer, strategist, decision-maker: –Pazzo’s vs. Joe Bologna’s vs. Domino’s –Lexington Brewing Co. vs. Anheuser-Busch –John’s Running Shop vs. Footlocker –Pannell’s Swim Shop vs. Dick’s Sporting Goods

8. Managing Expectations What you will get from this course: What you will get from this course: –Useful frameworks/heuristics –How to manage information and knowledge –Ability to integrate and analyze –Ability to anticipate and react –Ability to solve strategic problems –Ability to make decisions –“Big picture” perspective

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

10. Pedagogical Approach Real-world business cases & current events Real-world business cases & current events On-line readings On-line readings Oral case reports Oral case reports Field exercises Field exercises Web-based strategy simulations Web-based strategy simulations Class discussions/participation Class discussions/participation Videos, guest speakers Videos, guest speakers

11. Course Materials QuickMBA.com QuickMBA.com CAPSTONE™ simulation (...details soon) CAPSTONE™ simulation (...details soon) AFTERMARKET™ simulation (...details later) AFTERMARKET™ simulation (...details later) PRICE STRATEGY simulation (...details later) PRICE STRATEGY simulation (...details later) MERGER PLAN simulation (???) MERGER PLAN simulation (???) CITY CAR simulation (???) CITY CAR simulation (???) XANEDU.COM on-line course pack: XANEDU.COM on-line course pack:  IBP and Meat Industry  XM Satellite Radio  Webvan  Plus 5 HBR articles  Pennzoil  Gillette  Kraft/Genl Food

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13. Assignments & Grading ?

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15. CAPSTONE Simulation Web-based, interactive competition simulation Web-based, interactive competition simulation Teams play role of CEO, CFO, COO, etc. Teams play role of CEO, CFO, COO, etc. Teams compete against one another Teams compete against one another Coordinate multifunctional strategy, decision-making, etc. Coordinate multifunctional strategy, decision-making, etc. Computer rankings, pre-game report, post- game report Computer rankings, pre-game report, post- game report

16. Assignments for Next Week MONDAY Subscribe to XANEDU.com Subscribe to XANEDU.com –What is strategy? (Porter) –Making strategy: Learn by doing (Christensen) –Minutes of Oct 19 ExComm Meeting –I will also send other links about Cuban Missile Crisis via e-mail WEDNESDAY Case study (XANEDU.com) Case study (XANEDU.com) –IBP and the U.S. Meat Industry