MBA8911 – Strategic Management Course Syllabus Summer 2019 Instructor: Geoffrey G. Bell, Ph.D. Office hours: Office: LSBE 365Q M,W, 4:30-5:30 Phone: 726-7640 Or by appointment email: ggbell@d.umn.edu fax: 218-726-7578 Meeting time/location: Section 1: 6:00-8:40PM, M,Tu,W,Th, 265LSBE Readings: The readings for this course includes a textbook and a set of journal articles, all listed below. The textbook and the set of readings will provide us with the fundamental theoretical material for the class. Texts (required): Lafley, A.G. and Roger L. Martin (2013). Playing to Win: How strategy really works, Harvard Business Review Press, Boston, MA. Rothaermel, Frank (2015). Strategic management concepts 3rd edition, McGraw-Hill Irwin. This book will show up in your Moodle in-box, and unless you opt otherwise, you will be billed for it by the bookstore. If you have made alternative arrangements to access it, please contact the bookstore within the first 2-3 days of class, so they can cancel it for you. Articles (required): While we are using both a trade press and a textbook this semester, there are still some critical and salient articles that I want you to read as part of this course. I will post these articles to the class Moodle site. Collins, James C. and Jerry I. Porras (1996). “Building your company’s vision,” Harvard Business Review, September-October 1996: 65-77. Collis, David J. and Cynthia A. Montgomery (2005). “”Diversified expansion,” Chapter 4 from Corporate Strategy: A resource-based approach, McGraw-Hill Irwin, 87-113. Doz, Yves L. and Gary Hamel (1998). “The new alliance game,” Chapter 1 in Alliance Advantage: the art of creating value through partnering, HBS Press, 1-32. Freeman, R. Edward, Jeffrey S. Harrison, and Andrew C. Wicks (2007). “Managing for stakeholders,” Chapter 1 of Managing for stakeholders: Survival, reputation, and success, Yale University Press, New Haven, CT, 1-18. George, Bill, Peter Sims, Andrew N. McLean, and Diana Mayer (2011). “Discovering your authentic leadership,” HBR’s 10 Must Reads on Leadership, Harvard Business Review Press, Boston, MA., pages 163-177. Lorange, Peter and Johan Roos (1998). “Strategic alliances in international business,” Chapter 1 in Strategic alliances: Formation, implementation and evolution,” Blackwell Business, 3-24. Magretta, Joan (2012). “Competition: the right mind-set,” Chapter 1 from Understanding Michael Porter, Harvard Business Review Press, 19-33. Minzberg, Henry (1987). “Crafting Strategy,” Harvard Business Review, July-August 1987, pages 66-75. Mintzberg, Henry (1987). “The strategy concept I: Five Ps for strategy,” California Management Review, Fall 1987, pages 11-24. Mintzberg, Henry (1987). “The strategy concept II: Another look at why organizations need strategies,” California Management Review, Fall 1987, pages 25-32. Porter, Michael E. (1996). “What is Strategy?” Harvard Business Review, November-December 1986: 61-78. Rumelt, Richard P. (2011). “Introduction: Overwhelming obstacles,” from Good Strategy, Bad Strategy: The difference and why it matters, Crown Business, New York, pages 1-8. Course Overview: Strategic management is fundamentally about firm performance, and how we can enhance it. As such, strategic management normally adopts a top management perspective, that of the CEO or other top managers. While many managers and academics assume that managers only seek to enhance financial performance (the so-called profit maximization assumption), in this class, we will assume that a firm’s top managers seek to improve performance, broadly defined, including environmental, social, and spiritual well-being, and the managers’ attempts to improve performance occurs in community – that is, the CEO is expected to act not only in his/her own best interests, nor solely in the interests of one particular group of stakeholders such as the shareholders, but in the interests of the organization as a whole and the wider society in which the firm is embedded.) In an attempt to understand how firm management enhances performance, we will examine how a firm develops and implements its strategic vision, goals, and strategy, and how these interact with the firm’s external environment and the firm’s internal resources and capabilities to determine its performance. In this course, you will learn principles and techniques to assist you understanding and analyzing strategic problems and will practice applying these principles and techniques to real-life situations through analysis of actual firms and industries, both in case studies and in the major term assignment. Because this is a graduate-level course, you will find that we spend a lot of time examining real-world situations, including cases and other organizational dilemmas (UMD and LSBE will often be Guinea pigs in our discussion.) The course will be highly interactive, and depend extensively on your preparation, involvement, and participation. The more you “bring to the table,” the more we will all learn! Objectives (these are the specific things related to content I expect you to learn in this course): To understand what strategy is and why it matters. To understand key concepts and models underlying the field of strategic management. To understand the drivers underlying superior firm performance, however conceptualized. To be able to evaluate the components and effectiveness of the firm’s strategy. To apply course concepts in a variety of contexts. MBA Program-level learning goals (these are the things we in LSBE expect you to learn throughout the course of your studies here): Core Knowledge and Skills Learning Goal: Communicate effectively in business contexts. Learning Objective 1A: Produce professional quality business documents. Learning Objective 1B: Deliver professional quality business-oriented presentations. Learning Goal: Diagnose and evaluate business problems accurately to make effective managerial decisions. Learning Objective 2A: Use appropriate quantitative tools and techniques to analyze business problems. Learning Objective 2B: Apply quantitative information to make effective decisions. Learning Objective 2C: Apply qualitative information, tools/techniques, and appropriate theories to make effective decisions. Learning Goal: Integrate ethical and global perspectives in managerial decisions. Learning Objective 3A: Identify and resolve ethical and legal issues in managerial situations. Learning Objective 3B: Identify and analyze relevant global issues in managerial situations. Management Specific Knowledge and Skills Learning Goal: Demonstrate an advanced level of business acumen. Learning Objective 4A: Know the core functional business areas from a managerial perspective: accounting, finance, management [human resources and operations], and marketing. Learning Objective 4B: Integrate knowledge of the core functional business areas that reflect cross-functional aspects of management. Learning Goal: Demonstrate knowledge and skills to be effective leaders. Learning Objective 5A: Explore their leadership qualities and identify opportunities for leadership development. Learning Objective 5B: Apply knowledge of individuals, groups, and the organizational context to influence and direct the work of others effectively. In this course, I have been specifically tasked with assessing your performance on learning objectives 1A, 2B, 2C, and 3B (italicized above). I will do this in a variety of ways throughout the course. My Philosophy of Teaching: Mr. Bell – It’s all about the ‘why’ with you, isn’t it?” Luke Marsolek, Student, Fall 2005 Learning should be an enjoyable experience for both the students and the instructor. The learning process is greatly facilitated by active involvement of both the students and the instructor. I expect you to help me create a positive learning atmosphere by coming to class ready to participate in the discussion. Additionally, for a positive learning environment to exist, an atmosphere of acceptance is vital. We should all try to keep an open, but questioning, mind about ideas that our peers present in the class. Before we criticize what appears to be a “silly” idea, we must remember that the person who “invented” the hula-hoop got rich! However, before we accept others’ ideas uncritically, we need to remember that Thomas Watson, Senior, former CEO of IBM, expected that the total worldwide market for computers would never exceed five (that’s right, five – not five billion, but five), machines! Course Format: The course will consist primarily of group discussion and short case discussions. There will be few, if any, lectures. The more involved you are with the course discussion, the more informative and interesting it will be. Preparation: How valuable you find this course depends greatly on how well prepared you are for each day’s activities. The better prepared you are, the more you will get out of this course. Therefore, I expect all students to come to class prepared to participate in the day’s activities. I expect you to read the assigned readings (readings, cases, lesson plans, and overheads) before you come to class. However, regardless of your level of preparation, I urge you attend all class sessions. Attendance and contribution: Attendance in this course is not mandatory. However, there is a class contribution grade that you will not be able to earn if you are not present and actively involved in class. Course Requirements and Evaluation: Grading guide: This grading guide accomplishes several purposes: First, it shows you what you will be assessed on in this course. Second, it shows how each assessment item “maps” to both the course objectives and the MBA program level learning goals. Third, it shows you the relative weight of each course component, helping you assess how to allocate your time and effort (scarce resources available for class). Course element: Course objectives assessed: MBA Program level learning goals assessed: Number of points for the item “What is strategy?” exercise 1, 2 1a 35 points Hand-in assignments: 12 @5 points each 2, 3, 5 1a 60 points Hand-in case summaries: 8 @ 5 points 2, 3, 4, 5 1a, 2b, 2c, 3b (for some cases only) 40 points Class contribution 1, 2 1b 20 points Group vision exercise 2, 3, 5 1a, 1b 20 points Final case Any student who chooses not to submit the final written case will receive an F in the course. 1, 3, 4, 5 1a, 2b, 2c 20 points Total 160 points Note: The program learning goals displayed in italics are where I intend to assess the relevant program goal. So for example, at least one case will examine global issues, and I will use that/those case/s to assess your global knowledge. A. “What is strategy?” exercise This exercise is designed to help you think through the issues surrounding “what is strategy?” We all come to this class with preconceived notions about what strategy is, and why organizations (should) have one (many??). This assignment allows you to think about your conceptions of strategy and compare them with those of major writers in the field. Before you read the articles assigned for May 13 (the first class period), ask yourself, “What is strategy?” Write down your answer and bring it to class. This answer may reflect your knowledge from prior classes, your work experience, plus the general information “in the air” about what strategy is. Your answer should be about ½ page in length. Then, read the articles assigned for May 13, 15, and 15. Summarize in a paragraph how each one defines strategy. Please summarize the three articles by Henry Mintzberg as one group/set. In many ways, his three articles are three different perspectives on the same thought pattern. In what ways is each author’s answer similar to your answer? How does it differ? (Given how different each of the articles are, I’m sure you’ll find that some of them are closer to your answer and some further from your answer.) Write down your response. Finally, given all your thinking and reading, come up with a revised answer to the question, “What is strategy?” (How) Has your answer changed from before? In what ways is it similar? How does it differ? Overall, your answer should be about 4-6 pages, although the page limit for this assignment is very squishy. It will be due on May 15. B. Hand-in assignments Because of the highly interactive nature of the class, it is imperative that students read and reflect on the material before we discuss it. I do not have “tests” of the reading material in this course. Rather, I expect you to summarize much of the reading material and submit summaries to me. Therefore, there are regular written assignments that will allow you to show me your reflections on the material. If you look carefully at the detailed class schedule, most of the readings have the letters “HI” next to them. For every reading with an HI, you will give me a summary. Got it? I will evaluate your summaries on the basis of several factors: How fully and accurately you capture the content of the material. Use bullet lists for this portion whenever possible. Identify one or two of the points that you believe are most important and tell me why – the more personal your logic, the better! Identify one thing either: You did not understand. In this case, tell me what you did not understand and what you think the author(s) meant. You disagreed with the author(s) on. In this case, tell me what you disagreed with and why. Troubled you / disconcerted you / gave you angst/pause about the piece. Tell me what and why. Tell me how this article was similar to and different from something else you have learned in your educational journey (from kindergarten to today). Tell me how the article will affect how you will manage others, and why. The quality of you spelling, grammar, and presentation. I have a detailed grading rubric for these assignments available on the class Moodle page. The page limit for the hand-in assignments is 2 pages single-spaced or 4 pages double spaced. C. Hand-in case summaries: We will regularly examining short cases from the Rothaermel book, and I will ask you to give me brief summaries (no more than 2 pages, single-spaced) of the cases the evening we discuss them. Here is what I would like you to include in your summary: What is/are the key issue(s) (1-2) explored in the case? Why do you believe them to be key? What are the key facts presented in the case that pertain to these issues? What other salient facts have you discovered outside the case (cite your sources)? What is your proposed solution to the key issue(s)? Why that? D. Class contribution Why do I evaluate class contribution? Some students are under the misperception that class contribution consists primarily of “showing up.” However, class is like work in that few organizations will pay you merely to “show up.” To receive the rewards you want (pay, in the case of a work organization; grades, in the case of class), you are expected to add value to your organization. Similarly, Much of the value add in the class comes from the perspectives that you bring to the class’s discussion and the ideas that you share in class. When we discuss a case or a theoretical concept, you may bring a work perspective (having worked in a similar organization), or a unique cultural perspective (especially for you non-Minnesotans!). Thus, class contribution really includes active contribution to your and your colleagues’ learning. Why can’t students do make-up work? Sometimes, students want permission to do extra work to “make up” a lack of active contribution. I do not allow this. Why not? This perspective really presumes that the primary reason I want you to contribute to class discussion is so I can evaluate whether or not you’ve read the assigned material. However, ascertaining whether you’ve done so is really only a minor by-product of the exercise. My primary goal of asking you to contribute actively in class discussion is my recognition that we all contribute to the learning process. Learning is a joint product of teacher and student wrestling with material, such that we all (including me) learn something valuable. As mentioned above, we all bring our unique backgrounds and perspectives, and thus we all have something uniquely valuable to contribute to the class learning experience. Having you share your thoughts with me one-on-one would allow me to estimate your comprehension of course material, but would rob your colleagues of the opportunity to learn from your experience and perspective, so does not meet the objectives of class contribution. How do I evaluate class contribution? I will assign contribution grades based on the quality of your contribution, not just the quantity. Some of the criteria I will use to evaluate contribution quality include: Do you ask insightful questions that facilitate class learning? Are your points relevant to the discussion? Do you draw clear implications of your analysis? Do you present your arguments logically and coherently? Have you considered relevant counter-arguments, or do they “take you by surprise”? Do you enhance the class’s understanding of the issues? Can you effectively critique others’ comments or act as a “devil’s advocate” in discussion? Please note that asking good questions (such as asking for clarification about concepts that weren’t clear to you when you read the text) also constitutes “contribution” in my opinion! To help me evaluate class contribution fairly, please choose and stay in the same seat throughout the semester. That way, the probability of me erroneously awarding contribution credit will be minimized. I have developed a simple rubric to evaluate class contribution. For each class period, I will evaluate both the quantity and quality of contributions made by students. Students who are absent are awarded zero points for that night’s contribution. Students who are present but silent will be awarded 6 points. Students who make contributions to the discussion, but both low quality and low quantity will be awarded 7 points. Students who make contributions that are either high quality but low quantity, or high quantity but low quality will be awarded 8 points. Students who make contributions that are both high quality and high quantity will be awarded 10 points. I will score your participation such that a student who attends every class (except one) but never contributes to our group discussion will earn a C grade for contribution. Note that class contribution is the one item on the grading evaluation that has a component of being graded on a curve. At the end of semester, as mentioned above, folks who attend every class but make no contribution to the large-group discussion will score a C. Then, I will look at the highest number of points awarded based on actual contribution. That becomes an A. Then, I scale down from there. If you miss classes, you can somewhat overcome that by being active in the classes you are present. If you do not participate when present, and are often absent, your contribution score will be substantially lower than a C (including zero if you choose to attend none or only a few class periods). E. Group vision exercise In the group vision exercise, we will examine in pairs If we have an odd number of students that evening, we will have one trio. Any students unable to make this class period will need to talk with me ahead of class about my expectations and then submit your report by email prior to class. whether the LSBE vision statement conforms to the ideals of a “good” vision. We will identify the deficiencies of the vision using the criteria outlined in the Collins & Porras piece, and then seek to rework the vision so it more closely conforms to what Collins & Porras would consider a “good” vision. Each pair will then write a memo to Associate Dean Praveen Aggarwal outlining your critique of the vision and your proposed improvements. F. Final case Your final assignment in this course will consist of a case analysis of a case to be announced later. I will give you detailed instructions about my expectations at that time. The final case will be due no later than Monday, June 10 by 6:00PM. You will need to submit it to me in hard copy or via email. G Final exam There is no final exam in this course. Rather, the final case will be due no later than Monday, June 10 by 6:00PM. H Incomplete grades Incomplete grades will be given only in cases of extreme hardship (such as the death of an immediate family member), and only after you have discussed the matter with me. Documentation of the hardship will be required. I. Policy on late / missed papers All article summaries and case summaries are due the day we discuss them in class. The group vision exercise will be due at the end of class on May 20, and the final case will be due by 6:00PM on June 10. If you must turn in any assignment late, you may do so, but you will be penalized 10% of the paper’s value each day you are late. Please note that I consider your paper “received” when it is in my hands. Hence, if a paper was due on a Thursday and you drop it in my mailbox after I have left for the day and I do not come in again until Monday, then your paper will be four days late; not one. J. Writing Assistance for Written Assignments Your ability to write cogently and coherently influences your career success. Few managers can succeed in business today without strong writing skills. Therefore, I expect that your written assignments will, at a minimum, be grammatically correct and free of spelling errors. I evaluate your spelling and grammar when grading your work, and you will find how I evaluate it in the grading rubrics. If you are concerned that your written work is “not up to par,” I recommend that you contact the UMD Writer’s Workshop. Here’s some relevant information about it: Writer’s Workshop The Writers' Workshop offers free one-to-one writing support to all members of UMD's campus community. Graduate student or faculty consultants will work with you on any writing project at any stage in the writing process. To make an appointment, visit d.umn.edu/writwork or stop by the Workshop’s front desk; walk-ins are also welcome if a consultant is available. The Workshop is located in the Learning Commons on the second floor of the Kathryn A. Martin Library. For an appointment, contact: http://d.umn.edu/academic-writing-and-learning-center/writers-workshop Use of technology in class: I realize that many or most of us are almost constantly “connected” these days. We are constantly checking our emails, seeing what friends have posted on Facebook, checking for job leads on LinkedIn, reviewing the weather on Weather.com. However, I also realize that excessive connectivity can be distracting for the participant and his or her neighbors. How many of us have caught our eyes wandering to view what a colleague just pulled up on their computer. I am going to ask you to respect your colleagues and not use your devices Computers, cell phones, iPads, etc. for non-class-related work. If I find that students are using their devices for non-class related purposes, I reserve the right to drop their course grades one level per occurrence. (For example, if I find that Student A has used their computer twice for non-class related purposes, and A would otherwise get a B+ in this class, then s/he would receive a B-.) Presuming you bring your phone to class, please set it to silent. I forgot to silence mine one day and had a wrong number call me in class. I was mortified! Students with disabilities: “It is the policy and practice of the University of Minnesota Duluth to create inclusive learning environments for all students, including students with disabilities. If there are aspects of this course that result in barriers to your inclusion or your ability to meet course requirements such as time limited exams, inaccessible web content, or the use of non-captioned videos, please notify the instructor as soon as possible. You are also encouraged to contact the Office of Disability Resources to discuss and arrange reasonable accommodations. Call 218-726-6130 or visit the Disability Resources web site at https://umd-general.umn.edu/disability-resources for more information.” This is the official University of Minnesota Duluth policy. To me, my goal is to foster an environment in which all students can maximize their learning experience. Please let me know if there’s anything special I need to do to help you maximize your experience. Together with the Office of Disability Resources, we can work out a reasonable accommodation. If you feel you need formal special accommodation to meet your needs, it is your duty to contact the Office of Disability Resources to arrange for this. Academic integrity and plagiarism: I expect that students will act with the highest levels of academic integrity at all times. Generally, that means that I expect that you will not cheat on assignments, either by copying other students’ work or by plagiarizing from other sources. Please remember that plagiarism is a serious academic violation. An academic’s stock (much like an author’s) is in ideas, so you should not use other people’s work without properly citing it. This extends to your fellow class-mates as well. If (as will inevitably happen) one of your peers says something brilliant you wish you had thought of, you can use their ideas, but only if you cite them as the original source. I highly commend to you two relevant documents. The Department of Management Studies has adopted official policies on academic integrity and term papers. You can find them at http://www.d.umn.edu/sbe/departments/mgmtstudies/policy1.php and I highly recommend that you read them before you turn in your papers to me. Reservation of Rights to Change the Syllabus: The above syllabus and accompanying course schedule are subject to change in the event of extenuating circumstances. Current draft: Tuesday, April 23, 2019 Tentative Class Schedule Date Event Week 1 Monday, May 13 Introduction to the course; overview of syllabus What is strategy? (1): Mintzberg’s musings on strategy Readings: Mintzberg, “Crafting strategy” Mintzberg, “Five Ps for strategy” Mintzberg, “Another look at why organizations need strategy” Tuesday, May 14 What is strategy? (2): Reflections on Rumelt Readings: Rumelt, “Introduction: Overwhelming obstacles” What is strategy? (3): Porter ponders strategy Readings: Porter, “What is strategy?” Wednesday, May 15 What is strategy? (4): Lafley and Martin on Strategy Readings: L&M, introduction, chapter 1 What is strategy reprise: What did we learn? Assignment due: What is strategy? Thursday, May 16 Leadership in organizations Readings: George et. al., “Discovering your authentic leadership” (HI) Optional reading, Rothaermel, chapters 2, 12 Case: ChapterCase12: “Uber” Week 2 Monday, May 20 “The Vision Thing” Readings: Collins & Porras, “Building your company’s vision” (HI) Group assignment: Critiquing and rebuilding LSBE’s Vision Statement Tuesday, May 21 Stakeholders and strategy Readings: Freeman et. al., “Managing for stakeholders” (HI) Virtual lecture: Ed Freeman on managing for stakeholders Wednesday, May 22 Two perspectives on competition Readings: Magretta, chapter 1, “Competition: The Right Mind-Set” (HI) L&M, chapter 2, “What is winning” Case: MiniCase #6: “Apple: What’s next?” (CS) Thursday, May 23 Where to play? Readings: L&M, chapter 3, “Where to play?” (HI) MiniCase #15: “Competing on business models: Google vs. Microsoft” (CS) Week 3 Monday, May 27 Memorial Day – no class Tuesday, May 28 How to win? Generic business strategies Readings: L&M, chapter 4, “How to win” (HI) Optional reading: Rothaermel, chapter 6 Case: ChapterCase 6: “Jet Blue: Stuck in the Middle?” (CS) Wednesday, May 29 Play to your strengths: The RBV Readings: L&M, chapter 5, “Play to your strengths” (HI) Optional reading, Rothaermel, chapter 4 Virtual Lecture: Jay Barney on the RBV Case: ChapterCase #9: “Disney: Building billion-dollar franchises” (CS) Thursday, May 30 Moving beyond the core business: Diversification and vertical integration Readings: Collis & Montgomery, chapter 4, “Diversified expansion” (HI) Optional readings: Rothaermel, chapter 8 Case: ChapterCase 8: “How Amazon.com became the everything store” (CS). Week 4 Monday, June 3 Moving beyond the home market: Globalization Readings: TBA Case: ChapterCase #10: “The wonder from Sweden: IKEA” (CS) Tuesday, June 4 Growing the business: The magic of strategic alliances Readings: Doz and Hamel, chapter 1, “The new alliance game” Lorange & Roos, chapter 1, “Strategic alliances in international business” (HI – pick one chapter) Wednesday, June 5 Strategic change: Manage what matters and Shorten your odds Readings: L&M, chapters 6&8 (HI – pick one chapter) Case: MiniCase #7: “Starbucks: Schultz serves up a turnaround” (CS) Thursday, June 6 Where to compete: Think through strategy Readings: L&M, chapter 7 (HI) Optional readings: Rothaermel, chapter 3 Case: ChapterCase #3: “Tesla Motors and the U.S. auto industry” (CS) Monday, June 10 Final case: TBA Have an outstanding semester 11