1. Page 1 Resources and Capabilities

2. Original Schedule – Week 2 Page 2 DATETOPICREADINGS/ASSIGNMENTS 17 MAY Monday + 18 MAY Tuesday Business Planning and Strategic Implementation Framing questions: How do organizational leaders craft and articulate a “blueprint” for the organization’s overall strategy? What are the processes associated with integrating various business functions and processes – i.e., design/introduce new products, analyze the marketplace/competitors, marketing, purchasing, production/operations, finance/accounting, human resources – for the successful implementation of the strategy? Presentations: New Restaurant Business Plans 19 MAY Wednesday Strategy and Innovation Framing questions: How do organizations simultaneously explore, create, and launch new initiatives (i.e., new products, services, market positions, etc.) and exploit, defend, and sustain innovation-borne advantages in the face of competition? Task: Tower-building Competition Article: Oops! (Wall Street Journal) Article: Blue Ocean Strategy (Harvard Business Review) Article: Racing to be Second (Business Strategy Review) Video: Triumph of the Nerds PPoint: Strategy and Innovation 20 MAY Thursday Strategy and Innovation (cont.) Task: New Product Strategy Audit Presentations 21 MAY Friday Competitive Interaction Framing questions: How do organizations effectively maneuver in the marketplace vis-à-vis rivals? What is competitive intelligence, and how can it enable organizations to anticipate and effectively react to the strategies and tactics of rivals? Article: Hardball – Five Killer Strategies (Harvard Business Review) Article: McDonald’s Takes on Weakened Starbucks (Wall Street Journal) Article: New Ads Stir Up Coffee Wars (Wall Street Journal) Web: Starbucks’ Rivals Brew Up a Coffee WarStarbucks’ Rivals Brew Up a Coffee War Article: Apple, Google Rivalry Heats Up (Wall Street Journal) PPoint: Competitive Interaction

3. Revised Schedule – Week 2 Page 3 DATETOPICREADINGS/ASSIGNMENTS 17 MAY Monday + 18 MAY Tuesday New Restaurant Business Plan and Tasting Competition Kick-off and Ideation In-class Team Planning Session In-class 19 MAY Wednesday Strategy and Innovation Task: Tower-building Competition Article: Oops! (Wall Street Journal) Article: Blue Ocean Strategy (Harvard Business Review) Article: Racing to be Second (Business Strategy Review) Video: Triumph of the Nerds PPoint: Strategy and Innovation 20 MAY Thursday Restaurant Simulation Concept, Signature Dish, Business Plan Spot-Check Team meetings 21 MAY Friday Competitive Interaction Article: Hardball – Five Killer Strategies (Harvard Business Review) Article: McDonald’s Takes on Weakened Starbucks (Wall Street Journal) Article: New Ads Stir Up Coffee Wars (Wall Street Journal) Web: Starbucks’ Rivals Brew Up a Coffee War Article: Apple, Google Rivalry Heats Up (Wall Street Journal) PPoint: Competitive Interaction 22 or 23 MAY Sat. or Sun. Restaurant Simulation @ Ferrier House 11:00-3:00 Prep, Cook, Serve, Present, Eat, Clean 1:00-1:30 Group 1 Serve and Present 1:45-2:15 Group 2 Serve and Present

4. Original Graded Assignments Page 4 AssignmentWeight Business Planning and Strategic Implementation Presentation15% New Product Strategy Audit Presentation15% Global New Product Launch Simulation Memo(s)15% Post-Acquisition Simulation Memo(s)15% In-Class Participation/Discussion/Presentations10% Final Project – Strategy Recommendation Report30% TOTAL100%

5. Revised Graded Assignments Page 5 AssignmentWeight Business Planning and Strategic Implementation Presentation15% → 30% New Product Strategy Audit Presentation15% Global New Product Launch Simulation Memo(s)15% Post-Acquisition Simulation Memo(s)15% In-Class Participation/Discussion/Presentations10% Final Project – Strategy Recommendation Report30% TOTAL100%

6. Page 6 Competitive Advantage: An Internal View What is a resource? What is a capability? What’s the difference: –Potential vs. Kinetic energy? How do resources and/or capabilities contribute to competitive advantage? –Decisions –Actions and maneuvers –Force, endurance

7. Page 7 Resources and Capabilities

8. Page 8 The Cola Wars – Coke vs. Pepsi

9. Page 9 Inputs into a firm’s value-producing stream What a firm has Capital equipment Skills of employees Brand names Deep pockets Strategic alliancesResourcesResources

10. Page 10 The ability to integrate resources to achieve a desired objective What a firm can do Quick introduction of new products Preemptive price-cutting Attention-grabbing advertising CapabilitiesCapabilities

11. Page 11 Boxing Resources Boxer 1 6’6” tall 233 lbs Runs 24 mi./week Eats 240g protein/day Has 20/20 vision Quick reflexes Fought in 3 championship fights Coached by Cuban national team coach Boxer 2 5’10” tall 175 lbs. Practices yoga Likes to eat pasta and salad Has 20/100 vision, must wear contacts Just learned how to box Prefers to coach himself

12. Page 12 Boxing Capabilities Boxer 1 Longer punching reach Punches with great force, speed and power Endurance to compete aggressively for 10-round match Able to quickly move away from fierce attacks Able to quickly see and interpret rival’s hand, feet, and eye movements Able to blend own and coach’s experience for superior strategy and tactics Boxer 2 ??

13. Page 13 Support Activities Primary Activities Value Chain Analysis To identify which resources and capabilities can add value

14. Page 14 Inbound Logistics Support Activities Primary Activities

15. Page 15 InboundLogistics Operations Support Activities Primary Activities

16. Page 16 InboundLogistics Operations Outbound Logistics Support Activities Primary Activities

17. Page 17 InboundLogistics Operations OutboundLogistics Marketing & Sales Support Activities Primary Activities

18. Page 18 InboundLogistics Operations OutboundLogistics Marketing & Sales Service Support Activities Primary Activities

19. Page 19 InboundLogistics Operations OutboundLogistics Marketing & Sales Service Procurement Support Activities Primary Activities

20. Page 20 InboundLogistics Operations OutboundLogistics Marketing & Sales Service Procurement Technological Development Support Activities Primary Activities

21. Page 21 Technological Development Procurement InboundLogistics Operations OutboundLogistics Marketing & Sales Service Human Resource Management Support Activities Primary Activities

22. Page 22 Technological Development Human Resource Management HQ: TMT & Firm Infrastructure Procurement InboundLogistics Operations OutboundLogistics Marketing & Sales Service Support Activities Primary Activities

23. Page 23 Technological Development Human Resource Management HQ: TMT & Firm Infrastructure Procurement Inbound Logistics Operations Outbound Logistics Marketing & Sales Service MARGIN MARGIN Support Activities Primary Activities

24. Burger Joint Value Chain Strengths and Weaknesses OBLMFGIBLMKTSVC HRM Purch R&D H.Q.

25. Burger Joint Value Chain Strengths and Weaknesses OBLMFGIBLMKTSVC HRM Purch R&D H.Q. Takes too long to order at drive-thru Ads show “hip” image Steady stream of interesting new products S SW Dirty Bathrooms W Employees not well groomed, lack cheerfulness W

26. Burger Joint Value Chain Strengths and Weaknesses OBLMFGIBLMKTSVC HRM Purch R&D H.Q.