Schulich School of Business York University Course Outline SGMT 3000 3.

0: Strategic Management Section T: Wednesday 8:30 -11:30 AM (Room SSB N109) Winter 2014 Instructor Mekki MacAulay Office: W360 Seymour Schulich Building Email: [email protected] Office hours: Wednesday 11:30 am 1:00 pm, by appointment only (appointments for other times may also be arranged through email) Administrative assistant: Stephanie Allen (email: [email protected]; Tel: 416-736-2100 Ext 66125; Room SSB N305) Brief Description This core course focuses on the fundamental concepts of strategy and strategic management, and explores the task of developing, implementing, executing, and monitoring an organizations strategy. The emphasis is on the kinds of problems and issues that affect the success of the entire organization. Examples are drawn from all sizes and types of organizations, businesses, not-for-profits, government agencies, and the third sector. Nevertheless, the majority of content and the cases discussed deal with profit-oriented enterprises operating in a competitive environment. The course uses readings, lectures, case discussions and role playing to expose students to a wide range of concepts and to the many types of situations that face managers and bear directly on an organizations ultimate success. Prerequisite[s] / Co-requisite[s] Note: Not open to iBBA students for credit. This course cannot be completed on Exchange by BBA Direct-Entry students. Exceptions may be made only for Delayed-Entry students going on Exchange during their 4th year of study. -------------------------------------------------------------Course objectives This course is about strategy and related concepts. The focus throughout is on strategic management: the task of crafting, implementing, executing, and monitoring an organizations strategy. The emphasis is on the kinds of problems and issues that affect the success of the entire organization. A concerted attempt is made to elaborate on the general applicability of the strategic management discipline to all sizes and types of organizations and businesses; nevertheless, the majority of content and the cases discussed in the course place emphasis on the profit-oriented enterprises operating in a competitive environment. We address the multitude of challenges facing managers today emanating from economic, competitive, ethical, globalization, technology, corporate governance, and entrepreneurial developments that shape

every organizations daily reality. In particular, this course is aimed to equip students with a high level of comprehension and skills in the strategic issues faced by organizations. We train students to connect these skills to real-world practices through a serious of activities, including readings, lectures, case discussions, role plays, and discussion of current business events. Besides exposing students to a wide range of theoretical models and concepts, we also train them to independently create wholes out of these multiple models and concepts. By integrating a varied set of models and concepts, students are tasked with articulating a long-term vision and short-term goals, making strategic decisions, and devising strategies to implement these decisions. The choice of an appropriate theory and, more importantly, the integration of multiple theories are an important component in this course. Through the development of these skills, students will develop a holistic view of the complex business environment commonly confronted by managers, and subsequently draw conclusions and make strategic decisions by combining theories, examples and facts. They will also develop the appropriate vocabulary and tool kit to respond to strategic issues. In summary, in this course students engage in activities that directly address needs of the business sector, both Canadian and otherwise, through structured opportunities intentionally designed to promote students appreciation of the strategic issues in todays dynamic economy Through the course, students can expect to develop and demonstrate the skills in dealing with complex situations and synthesize diverse information in order to identify the core problems, analyze relevant data, identify strategies that are appropriate to each situation, evaluate alternatives, and recommend specific courses of action for creative solutions to strategic problems. Organization of the Course The class will meet once a week for three hours. There is no tutorial. Generally, we will discuss conceptual models in each class and also analyze a case. It is expected that students will read all required material (from the text and reading packet), as well as the case for each class. In addition, students are expected to have given some thought to the case-related questions in advance of the class. Much of the learning in the case method is through classroom discussion of key issues, and active in-class participation is critical for the success of the class. Additionally, learning to work in teams is essential to the management development process and is part of the format of the course. Small groups (5-6 students) will be formed at the beginning of the term. For many of the sessions, at the beginning of class you will discuss the assigned questions and other critical issues that you identify as important with your group members. The group will remain the same throughout the term and for the group project.

Assigned Reading Required reading for this course includes the following book. It is available for purchase from

the York University bookstore. C.W.L. Hill and G.R. Jones. Strategic Management Theory (10th ed.), South-Western, 2013. A package of additional reading materials has been prepared to supplement the required text[s]. The materials have been assembled into a course kit. These kits are available for purchase at the University bookstore. Each section of a Schulich-based course has a Course Materials Database (CMD) created within Lotus Notes. Every CMD includes some important general information for Schulich students. Relevant material such as the assignment will be posted to the CMD throughout the term.

Evaluation of Student Performance The course grading scheme for undergraduate courses conforms to the 9-point system used in other undergraduate programs at York. The possible course letter grades for a course (and the corresponding grade points awarded for each grade are: A+ 9 grade points A 8 B+ 7 B 6 C+ 5 C 4 D+ 3 D 2 F 0 (Students are reminded that they must maintain a cumulative GPA of at least 5.0 to remain in good standing and continue in the program, and to qualify for their degree. Schulich grading guidelines mandate a section GPA of between 5.5 and 7.0.) Where instructors use numerical or percentage grades, Schulich grading policy does not require a preset translation of percentages into specific letter grades. In this class, final letter grades will be determined by the following process: Classroom/Group Performance Case Analysis (written in pairs) Mid-term I Mid-term II Group Project Classroom/Group Performance The following elements, including attending lectures, participating in class activities, contributing to group project and providing constructive comments to the instructor and your 15% 20% 20% 20% 25% (of which 5% group presentation)

peers, are crucial for achieving a good grade in this category. Note: It is assumed that each individual contributes constructively to group activities, based on the level of his/her class participation, his/her contribution to the group project and other such behaviors relevant to this course. Should group members consider an individual to be free riding, they may bring this to the instructors attention so long as a majority of the group members discuss this with the instructor. Should such a complaint continue, the individual may be penalized up to 5% of the participation grade and 5% of the group project grade. Remember it is the quality of your participation, and not just the quantity (or air time), that will lead to good performance in class discussion: Excellent class participation: The student consistently attends class, consistently contributes to case discussions, and consistently demonstrates superior understanding and insights Good class participation: The student consistently attends class, consistently contributes to case discussions, and occasionally demonstrates superior understanding and insights Mediocre class participation: The student inconsistently attends class, inconsistently contributes to case discussions, and rarely demonstrates superior understanding and insights. You will not be penalized for up to two absences, regardless of the reason. Beyond the first two absences, your grade could be adversely affected, except under extenuating circumstances. Case Assignment The case analysis is to be written with a partner.* It is due on Week 8 (March 5) and the case to be analyzed will be provided by the instructor in class on or before February 26. Assignments handed in later than 8:30 am on March 5 will automatically get a zero grade, because the case will be discussed in class on March 5. * In case of an odd number of students, one student will be randomly assigned to do it individually. Notes: 1. The case assignment is due at the beginning of class. Late assignments or electronic submissions will not be accepted. Please hand in the hard copies. 2. Maximum length is 4 double-spaced pages with 1-inch margin on all four sides of the pages. Use Times New Roman, 12-font only. On top of the 4-page limit, you can include (a) one title page, (b) one page of appendix which includes tables or figures only, and (c) as many reference pages as you wish. Reference pages can include reference only. 3. Students are expected to develop and present a complete analysis of each assigned case in pairs.

Group Project (due April 2) The group project consists of a comparative analysis of the environment and the strategy of two competitors (US or Canadian publicly traded company) in the same industry based on secondary research. Broadly, the purpose of the analysis is to identify underlying factors and

forces that explain, from a strategic point of view, relative differences in their performance in recent years. You are then expected to take the point of view of one firm. If the lagging firm, what should it do to remedy the situation? If the leading firm, what should it do to sustain or further reinforce the situation? Each group is required to clear with me the firms they choose. No two groups can do the same firm(s) so I encourage you to decide sooner rather than later. Certain industries are off limits. For instance, the industry may be too complicated for undergraduate students to comprehend (e.g., banking, insurance, etc.). In others, performance may be determined by factors largely beyond the companies' control (e.g., union issues), etc. The written report is due on April 2. It should include your findings, conclusions and recommendations. It is important that you demonstrate and apply your understanding of various concepts/tools/frameworks discussed in class. The maximum page limit is 20 doublespaced pages of text, plus the title page, the executive summary (maximum 1page) and all appendices (maximum 3 pages). For the text, use Times New Roman, 12-font only with 1-inch margin on all four sides of the pages in the main text. You may include as many reference pages as you wish. Reference pages can include reference only, and an example of a reference is: Adam, J. A. 2003. Mathematics in nature: Modeling patterns in the natural world. Princeton, N.J.: Princeton University Press. Each group will give 10 to 12 minute presentations, depending on time constraint. If time permits, a 2-5 minutes of Q&A/discussion session will follow immediately after each group presentation. Mid-term Exam I and II There will be two mid-term exams in weeks 5 (Feb 5) and 10 (March 19) respectively that aim to test your understanding of the material covered in the course and your ability to apply it in practice. It will consist of two aspects: (a) a combination of multiple choice and short-answer questions from the course readings (b) either a case synopsis, some scenario or excerpts from articles in the popular press (or other such sources) will be provided to you, accompanied by a few short questions to guide your answers. The expected duration of the midterm exam is about 90-120 minutes. Academic Honesty Academic honesty is fundamental to the integrity of university education and degree programs. The Schulich School will investigate and will act to enforce academic honesty policies where apparent violations occur. Students should familiarize themselves with York Universitys policy on academic honesty. It is printed in full in your student handbook and can also viewed on-line on the Schulich website, clicking through as indicated: Schulich website Programs Bachelors Degree Learn More Student Resources Academic Policy While academic dishonesty can take many forms, there are several forms of which students

should be highly aware because they are the ones that are most likely to occur in the context of a specific course. [1] Plagiarism. Plagiarism is the presentation of information, ideas, or analysis generated by other people as being your own. It includes direct quotations as well a substantive paraphrases where the course of that information or idea is not clearly identified to the reader. Students should be careful to present their written work in a way that makes it completely clear in each and every cases where a quotation, a paraphrase, or an analysis is based on the work of other people. (This includes information from all sources, including websites.) [2] Cheating. Cheating is an attempt to gain an unfair advantage in an evaluation. Examples of such violations include (but are not limited to) consulting prohibited materials during an examination or copying from another student. [3] Failure to follow limitations on collaborative work with other students in preparing academic assignments. Each class differs in the mix of assignments and group-versusindividual preparation that is allowed. The instructor will make clear the extent of collaboration among students that is acceptable among students on various pieces of assigned work. Students should abide by those limitations and, if they are unsure about whether a certain level or form of collaboration would be acceptable, to clarify that question with the instructor in advance. [4] Aiding and abetting. A student is guilty of violating academic honesty expectations if he/she acts in a way that enables another student to engage in academic dishonesty. If a student knows (or should reasonably expect) that an action would enable another student to cheat or plagiarize, that students action constitutes an academic honesty violation. Illustrative examples include making your exam paper easily visible to others in the same exam or providing your own working or finished documents for an individual assignment to another student (even if that other student said that he/she just wanted to get an idea of how to approach the assignment or to check whether they had done theirs correctly). [5] Use of academic work in more than one course. Generally, academic work done for every course is new work, done for that course only. If a student wishes to use some or all of the academic work done for an assigned task in one course in another course, the student must get explicit, prior permission from both instructors so that they agree that the scope and nature of the overlapping use of that work is such that it can fairly be counted toward both courses. WRITTEN WORK All written work is evaluated both for (a) the quality of the analysis and the coherence and persuasiveness of the logic. This includes careful use of facts and relevant information, consistency between the analysis and recommendations, and the integration of arguments in various sections (b) the extent to which there is an attempt to weave in theoretical concepts into the practical analysis, and (c) the quality of writing (including spelling, grammar, organization and conciseness). It is important to communicate your ideas clearly and concisely, otherwise even the best ideas get undermined because of faulty presentation. Grades do not depend on any "right answer" and I do not have any such answer in mind. In the past, I have had widely divergent papers that have received high marks.

Remember: It is not writing a lot but, rather, writing sensibly that counts. A good report ties it all together instead of just bringing up points and letting them "hang loosely". Do NOT merely present existing facts and restate information, but rather use the information to support your analysis and recommendations. NOTE: a. All written work is due at the beginning of the class and should be neatly typed (doublespaced, 1" margins, Times New Roman 12-font throughout). b. For all written assignments, please print out a hardcopy and deliver it to me in person at the beginning of the class. In the case that you are unable to do so because you will not be in class that session, please email me with an explanation and arrange to bring a record of the reason for your absence (medical note, etc.) c. Late assignments will not be accepted. There will be no make-ups permitted. d. Please put your student number and course number on the assignment. e. Papers not adhering to the specifications may be returned ungraded at my discretion.

Schedule of Topics and Readings The following list of lecture topics and readings indicate the material to be read, reviewed and/or prepared for the various class sessions. If any changes in this schedule become necessary, notifications will be posted in the course CMD, and where such changes need to be announced between class sessions, an email will be sent to students Lotus Notes email accounts, notifying them of the change. Week 1, Jan 8:

Readings: Chapter 1: Strategic Leadership: Managing the Strategy-Making Process

for Competitive Advantage Week 2, Jan 15: Threats

Readings: Chapter 2: External Analysis: The Identification of Opportunities and

Week 3, Jan 22:

Readings: Chapter 3: Internal Analysis: Distinctive Competencies, Competitive

Advantage and Profitability Case: Gillette's Energy Drain (A): The Acquisition of Duracell

Questions: 1. If you were James Kilt, CEO of Gillette, what strategic actions would you take to turn Duracel around? 2. What were the impacts of Duracells introduction of Ultra on the nature of completion in the battery industry? 3. What could Gillette have done differently in 1996 that would have had a more positive impact on company and industry profitability? 4. Why was Gillette unable to achieve the same success in batteries that it had been able to achieve in shaving products? Week 4, Jan 29:

Readings: Chapter 4: Building Competitive Advantage through Functional-Level

Strategy; Chapter 5: Building Competitive Advantage through Business-Level Strategy Case: Gucci Group N.V. (A) Questions: 1. Map the competitive positions of the different players in the luxury goods business. Who are the best positioned players? Why? 2. Where was Gucci positioned in 1990? 1994? 2000? What were the critical moves made by De Sole to reposition the company? 3. Evaluate De Soles latest strategic move to buy Yves Saint Laurent and Sergio Rossi. Week 5, Feb 5: MIDTERM I

Readings: Chapter 6: Business-Level Strategy and the Industry Environment

Week 6, Feb 12: Case:

Readings: Chapter 7: Strategy and Technology

Netflix Questions: 1. Would you have been long or short Blockbuster stock at the time of the case? How about Netflix? Why? 2. Did Netflix do the same jobs for consumers that Blockbuster did? How did this evolve over time? 3. Compare Blockbusters and Netflixs profit models. How might the differences affect the respective companys strategies? 4. As you examine each major shift in Netflixs strategy, what might have been an assumptions checklist that they might have used at each stage? What assumptions checklist might you use for VOD?

Feb 19: No Class (Co-Curricular Day) Week 7, Feb 26:

Readings: Chapter 8: Strategy in the Global Environment

Case: Cameron Auto Parts (A) Case assignment: Case for assignment will be handed out in hardcopy only this week in class and assignment question will be posted on CMD. Assignment to be done in pairs Questions: 1. Should Cameron have entered into a licensing agreement? 2. Was McTaggart a good choice for a licensee? 3. If you were Alex, what would you do? Week 8, Mar 5:

Readings: Chapter 9: Corporate-Level Strategy: Horizontal Integration, Vertical

Integration and Strategic Outsourcing Case assignment: Case assignment due at beginning of class in hard copy only Week 9, Mar 12:

Readings: Chapter 10: Corporate-Level Strategy: Related and Unrelated

Diversification Case: The Walt Disney Company and Pixar: To acquire or not to acquire?

Questions: 1. Which is greater: the value of Pixar and Disney in an exclusive relationship, or the sum of the value that each could create if they operated independently of one another or were allowed to form relationships with other companies? 2. Assuming that Pixar and Disney are more valuable in an exclusive relationship, can that value be realized through a new contract? Or is common ownership required? 3. If Disney does acquire Pixar, how should Bob Iger and his team organize and manage

the combined entity? What challenges do you see and how would you meet them? Week 10, Mar 19:

Readings:

Chapter 12: Implementing Strategy in Companies that Compete in a Single Industry

MID-TERM II Week 11, Mar 26: Chapter 13: Implementing Strategy in Companies that Compete across Industries and Countries 1. Case: Philips vs Matsushita

Readings:

Case questions: 1. How did Philips become the leading consumer electronics company in the world in the postwar era? What distinctive competencies did they build? What distinctive incompetencies? 2. How did Matsushita succeed in displacing Philips as No. 1? What were its distinctive competencies and incompetencies? 3. What do you think of the change each company has made to date---the objectives, the implementation, the impact? Why is the change so hard for both of them? 4. What recommendations would you make to Gerald Kleisterlee? To Eumio Ohtsubo? Week 12, Apr 2: Group projects are due at beginning of class in hard copy only. Group presentations.