Mario Hayek@tamuc
Mario Hayek@tamuc
Mario Hayek@tamuc
Course Description: This class involves the study of administrative processes and policy determination at the
general managerial level which will be taught through assigned readings, applied homework, a business plan, a
strategic audit, and the sharing of ideas and experiences with peers. This course is open to business majors only
and should be taken during semester of graduation unless approved by department head and professor.
Course Objectives:
1. Understand the nature of competition and industries at an advanced level.
2. Understand how external forces such as social, political/legal, economic, and technological, influence
strategic decision-making and firm performance.
3. Understand the sophisticated relationships among the functional areas of an organization (marketing,
human resources, production, finance, and accounting) and how effective strategic planning requires a
concerted effort among all functional areas.
4. Understand strategy research, including extensive use of the internet as a research tool.
5. Be able to systematically apply the strategic management model to the analysis of an ongoing enterprise,
including industry, environmental, and firm assessments; firm, business, and functional strategic
assessments; development and evaluation of strategic alternatives; and strategic implementation and
control.
Global Course: MGT 527, a Texas A&M University-Commerce Global Course, seeks to prepare students for
an interconnected world through a focus on improved global competence. As a part of their respective Strategic
Audits, students will demonstrate knowledge of the interconnectedness of global dynamics as they analyze
organizations, their industries, and their internal and external environments. After grading, students will submit
their Strategic Audits to ePortfolio - https://leo.tamuc.edu ManeSync tab.
Course Text: Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. (2015). Strategic Management: Concepts and Cases:
Competitiveness and Globalization (11th Edition). Cengage Learning: Stamford, CT. ISBN: 9780132153225.
Print: ISBN-10 1285425170, ISBN-13 9781285425177; eText: ISBN-13 9781285801063, ISBN-10
1285801067. Cost: New Price: $127.88; Used Price: $180.
Communication: The main means of communication for this course will be via EmailI check my email
several times per day. If you email me a question that I consider might benefit the rest of the class, I will email
the question with a response to the entire class. I do not use all of the functions available on eCollege. Primarily,
I will be posting slides and other learning aides in Doc Sharing and we will be conducting our discussions
(see below) through the discussion space in eCollege. Also, you will be submitting your homework, business
plan, and strategic audit via the Drop Box in eCollege.
Course Grading:
Discussions (4): 10%
Homework (2): 24%
Cumulative/Comp Exam: 20%
Business Plan: 20%
2) This homework involves selecting a firm of your choice (other than the firm you plan to use for your
strategic audit or used in previous assignments) and creating a SWOT matrix and analysis. Specifically,
I want you to offer: 1) a brief introduction of the company including the company history, 2) brief
industry overview, 3) an external environmental and industry analysis similar to that produced in the
prior assignment, 4) literature review on firm strengths (e.g., competencies, capabilities, patents,
reputation), weaknesses and their impact on firm performance and competitiveness, 5) a SWOT
analysis (not just bullet points), 6) potential strategies that the firm could take to capitalize on
opportunities and strengths while protecting itself from threats and weaknesses. This homework will be
graded based on the level of detail of the SWOT analysis, the breadth and depth of your literature
review, and the depth and logic of your insights regarding strategies the firm should pursue.
Cumulative/Comp Exam
This exam will be given to you during the first couple weeks of the semester and is to be completed
individually. It covers a broad scope of topics and counts as the required Comp exam for graduation. YOU
MUST OBTAIN A PASSING GRADE (I consider a passing grade as 70% or greater) ON THIS EXAM IN
ORDER TO GRADUATE.
Business Plan
The purpose of this assignment is to offer you the opportunity to analyze your immediate environment and
exercise your creativity and ability to discover and exploit opportunities by using strategic management
concepts. This assignment differs from the strategic audit in that it requires a more detailed knowledge of
specific business characteristics that are typically not available when analyzing the larger firms (i.e. cost of
square foot to rent a commercial property, the cost of importing a specific product, the cost of flyers or an ad in
the local paper). Also, I find that constraining oneself to a new business places a limit on the budget (i.e.
bootstrapping) that can realistically be used to implement a plan. For example, when analyzing a case or
performing a strategic audit on a large company (e.g. Apple), your budget is almost infinitethis is not the case
with new ventures. The plan will be graded based upon creativity, timeliness, specificity, depth and breadth of
analyses, and SUPPORT for your business idea, as well as your team members rating of your contribution.
Please refer to the attached business plan outline for the structure of your business plan.
Strategic Audit
The purpose of this exercise is to analyze a large corporation and its environments and apply strategic
management concepts to find insightful strategic options for this firm. Based on an existing corporation, your
team will prepare a written strategic analysis applying strategic management concepts. This will be a team
project and the firm and industry will be negotiated once the make up of the class is established. The audit will
be graded based upon timeliness, specificity, depth and breadth of analyses, and SUPPORT for your
recommendations, as well as your team members rating of your contribution. Please refer to Strategic Audit of a
Corporation in Appendix 1.A on pages 34-41. You should use this outline as a guide for your project. You may
also want to refer to chapter 12 for additional guidance.
Students with Disabilities: The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute
that provides comprehensive civil rights protection for persons with disabilities. Among other things, this
legislation requires that all students with disabilities be guaranteed a learning environment that provides for
reasonable accommodation of their disabilities. If you believe you have a disability requiring an
accommodation, please contact the Office of Student Disability Resources and Services, Texas A&MCommerce, Gee Library, Room 132 Phone (903) 886-5150 or (903) 886-5835 Fax (903) 468-8148
[email protected]
Code of Student Conduct: All students will follow the tenets of common decency and acceptable behavior
conducive to a positive learning environment. See Students Handbook, Rules, and Procedures, Code of Student
Conduct http://www.tamu-commerce.edu/studentlife/guidebook67.pdf. College of Business professors do not tolerate
plagiarism and other forms of academic dishonesty. Instructors are expected to uphold and support student
integrity and honesty by maintaining conditions that encourage and enforce academic honesty. Conduct that
violates generally accepted standards of academic honesty is "Academic dishonesty." It includes, but is not
limited to, plagiarism (the appropriation or stealing of the ideas or words of another and passing them off
as one's own), cheating on exams or other course assignments, collusion (the unauthorized collaboration
with others in preparing course assignments), and abuse (destruction, defacing, or removal) of resource
material. See 13.99.99.R0.10 Academic Honesty at
http://www.tamuCommerce.edu/administration/Rules%26Procedures/rules_ procedures.asp?RID=97 . In accordance with the
Texas A&M University-Commerce Code of Student Conduct Section 5.b [1, 2, 3], the penalties for students
guilty of academic dishonesty include disciplinary probation, suspension, and expulsion. Also, you will
receive an F for this course. Please be aware that it is YOUR responsibility to ensure that any
document that contains your name follows these guidelines; all group members will receive the same
sanction regardless of who specifically incurred in the infraction.
Course Schedule
January
Week 1 Friday 23: Read Chapter 1: Strategic Management and Strategic Competitiveness
Please introduce yourselves to the rest of the class using student lounge
Participate in discussion 1
Week 2 Friday 30: Read Chapter 2: Chapter 2: The External Environment: Opportunities, Threats, Industry
Competition, and Competitor Analysis
Participate in Discussion 2.
February
Week 3 Friday 6: Read Chapter 3: The Internal Organization: Resources, Capabilities, Core Competencies, and
Competitive Advantages
Participate in Discussion 3
Week 4 Friday 13: Read Chapter 4: Business-Level Strategy
Week 5 Friday 20: Read Chapter 5: Competitive Rivalry and Competitive Dynamics
Due: Homework 1: environmental scanning and industry analysis
Week 6 Friday 27: Read Chapter 6: Corporate-Level Strategy
March
Week 7 Friday 6: Read Chapter 7: Merger and Acquisition Strategies
Week 8 Friday 13: Read Chapter 8: International Strategy
Due: Homework 2: SWOT matrix and strategic suggestions
Week 9 Friday 20: Due: Cumulative/Comp Exam
Week 10 Friday 27: Read Chapter 9: Cooperative Strategy
April
Week 11 Friday 3: Due: Business Plan
Environmental scanning:
variable identification (20%)
A fist step in the environmental
scanning process is identifying
those variables that have the
greatest impact on your
organization.
Environmental scanning:
variable trends (20%)
The second step in an
environmental scan is to
research and understand how the
identified variables have been
changing in the past and are
expected to change in the future.
Environmental scanning:
impact of trends on
organization (20%)
The third step in the
environmental scan is to
understand how the changes in
the identified variables may
impact the organization.
Meets Standards
Somewhat explains the general
history of the firm and how it
has changed over time. Also
broadly explains industry
trends.
(8)
(7)
(6)
(20)
(16)
(14)
(12)
(20)
(16)
(14)
Exceeds Standards
Clearly explains the history of
the firm and how it has
changed over time. Also
broadly explains industry
trends.
(16)
(12)
Is not able to articulate and/or
persuasively defend the potential
impact that the trends of the variables
in the future may impact the
organization.
(12)
(30)
(10)
(21)
(18)
Homework 2
Company History & Industry
Overview (20%)
In order to effectively assess the
environment and industry in
which a firm is immersed, it is
important to first have a general
understanding of the firm, its
history, and the industry in
which it competes.
Exceeds Standards
Clearly explains the history of
the firm and how it has
changed over time. Also
broadly explains industry
trends.
(20)
Meets Standards
Somewhat explains the general
history of the firm and how it
has changed over time. Also
broadly explains industry
trends.
(14)
(12)
(36)
The peer performed good
work, collaborated on the
homework and delivered what
was agreed upon.
(31)
The peer performed average
work, on occasion collaborated
on the homework and
delivered less than what was
agreed upon.
(27)
The peer performed mediocre work,
did not collaborate on the homework
and did not deliver what was agreed
upon.
(8)
(7)
(16)
(21)
(35)
(6)
Business Plan
Executive Summary (10%)
A compelling new venture
concept should be sold in just
a few summarized pages.
Rarely will an investor read
past the executive summary
unless a clear opportunity is
presented.
The Team (5%)
Its better to have an A team
and a B idea than a B team
and an A idea. Explain how
the team members will
contribute to the success of
the new venture.
Market analysis (20%)
The overall analysis should
include an industry analysis,
a detail of the target market, a
SWOT analysis, and an
analysis of the competitors
strategies (marketing Ps).
Exceeds Standards
Is able to articulate the new
venture opportunity and
present a highly convincing
argument for the success of
the new venture.
Meets Standards
Is able to articulate the new
venture opportunity and
present a highly convincing
argument for the success of
the new venture.
(10)
Detail how each members
competencies individually and
collectively enhance the
probability of the new venture
success.
(8)
Detail how each members
competencies individually
and collectively enhance the
probability of the new
venture success.
(5)
Detailed analysis of the
industry and future trends, the
target market and their profile,
a SWOT analysis, and a
detailed analysis of the main
competitors strategies (the Ps
of the most direct 5-7
competitors).
(20)
Very detailed and extremely
cohesive strategy of product,
price, promotion, and place
(dist. / location).
(4)
Detailed analysis of the
industry and future trends,
the target market and their
profile, a SWOT analysis,
and a detailed analysis of the
main competitors strategies
(the Ps of the most direct 5-7
competitors).
(16)
Detailed and cohesive
strategy of product, price,
promotion, and place (dist. /
location).
(20)
Very detailed explanation of
the manufacturing process
and/ or the offering of the
service. Specific details of
required infrastructure and
equipment, a list of providers/
suppliers and a specific
explanation of the production
process or sequence of the
service.
(16)
Detailed explanation of the
manufacturing process and/
or the offering of the service.
Include details of required
infrastructure and equipment,
a list of providers/ suppliers
and an explanation of the
production process or
sequence of the service.
(7)
Roughly explains how
general competencies
individually and/or
collectively enhance the
probability of the new
venture success.
(3.5)
Detailed analysis of the
industry and future trends,
the target market and their
profile, a SWOT analysis,
and a detailed analysis of the
main competitors strategies
(the Ps of the most direct 5-7
competitors).
(14)
Broad and somewhat
integrated strategy of
product, price, promotion,
and place (dist. / location)
strategy
(14)
Explanation of the
manufacturing process and/
or the offering of the service.
General infrastructure
requirements and equipment,
a list of providers/ suppliers
and a broad explanation of
the production process or
sequence of the service.
(20)
(16)
(14)
(6)
Is not able to explain how each
members competencies individually
and/ or collectively enhance the
probability of the new venture
success.
(3)
Weak/ vague analysis of the industry
and future trends, the target market
and their profile, a SWOT analysis,
and a detailed analysis of the main
competitors strategies (the Ps of the
most direct 5-7 competitors).
(12)
Vague and non-integrated strategy of
product, price, promotion, and place
(dist. / location).
(12)
Vague explanation of the
manufacturing process and/ or the
offering of the service.
(12)
Break-down of initial
investments, break-even
point, pro-forma income
statement, balance sheet, and
cash flow (monthly for the
first year and yearly for the
first 3 years), and ROI. Also
includes justifications for
capital structure and expected
dividend payout.
(16)
Detail the risks (4-7) that
may cause problems for the
success for the venture and
what you can do to mitigate
those risks as well as
establish contingency plans
to be implemented if need be.
Broad categorization of
initial investments, breakeven point, pro-forma income
statement, balance sheet, and
cash flow (for the first 3
years), and ROI.
(14)
Detail the risks (1-3) that
may cause problems for the
success for the venture and
what you can do to mitigate
those risks as well as
establish contingency plans
to be implemented if need be.
(12)
Fails to consider the risks that may
cause problems for the success for the
venture.
(5)
(4)
(3.5)
(3)
Business Plan
Executive Summary
The team: Who are they, experience, the role of each, and percent ownership?
The product/ service: What are you offering (characteristics) and benefits (differentiation)?
The opportunity: Why do you believe there is an existing demand for the product/ service you are offering?
The offer: How much investment is needed, what percent is being offered, how much debt will the firm have, what is the expected ROI?
The Team
Resume: Each member should have an attached resume.
Organizational structure: Who is reporting to whom?
Assignment responsibility matrix: Who will be in charge of what aspect of the business plan implementation?
Market analysis (environmental and internal scanning)
Industry analysis: What are the industry tendencies; is the industry growing or contracting? What is the industry size?
Target market: Who is our product/ service targeted towards? Why would they purchase what we have to offer? Why will they give-up their current
provider?
Competition analysis: Who are the competitors? What are their strengths and weaknesses? What are their strategies (their Ps)?
SWOT analysis: Identify the strengths, weaknesses, opportunities and threats. Be as honest as possible. Is your strengths list a lot longer than your
weaknesses list?
Marketing Plan
Mission: What is the purpose of your business?
Vision: Where do you see your firm in roughly five years?
Objectives: What specific goals have you established regarding, growth, quality etc.? Are they SMART (specific, measurable, attainable, realistic and
time-bound)?
Product: What are your product/ service characteristics?
Price: What price will we establish and why? Will we offer discounts or not? Should we group price or charge tag-on an additional charges (ex.
should food or luggage in airlines be included or charged separately)?
Publicity: What strategy will we use? What mediums will we use (TV, radio, newspaper, magazines etc.) as well as the frequency and cost of each?
Location: What location will we choose and why? Did you perform a cost/ benefit analysis?
Distribution: How will we reach the final client? Wholesale, retail, internet?
Manufacturing and operations plan
The product: Does your product have technical specifications? Does it need a patent? Will there be waste? What are the required materials for
manufacturing and who are the potential suppliers? Costs?
Infrastructure/ Facilities: Where will you manufacture and what are the benefits of the location? What technical requirements does the facility need?
Size? Cost?
Equipment: What equipment is needed and what are the technical specifications?
Production plan: Is it useful to have a flow diagram of the entire process from once an order is placed through production and finally reaching the
client?
Financial Analysis
Investment: What will be invested in and how much will be invested? Dont forget that the initial investment should take into account assets,
operational losses and working capital. Keep your eye on details for example permits, deposits (ex. rent), salaries pre-inauguration, transportation etc.
Break-even point: What are the fixed costs, variable costs and sales price? How many units do you need to sell to have a cash flow of $0. Perform a
sensitivity analysis to analyze how the BEP will change under different conditions.
Cash flow: This is the most important financial statement. In order to project a cash flow, you may first need to project the income statements and
balance sheets. What will your monthly cash flow be like during the first year and then yearly for the next two years?
Return on Investment: What ROI do you expect? Is it worth the risk?
Critical Risks
What possibly could happen that could significantly impact the potential success of this business? Can you create a mitigation plan for these risks?
Can you create a contingency plan for these risks?
Strategic Audit
Introduction to the Organization (I) History of the Company, Current Status
and impact of globalization 3 points
Identification of Industry &
competitors (II) (2 points)
Exceeds Standards
Includes essential material in this
section. Any additional material is in
an appendix. 3 points
Lists and briefly discusses industry(ies)
in which organization competes & its
competitors 2 points
Analysis of Organization Measurement and control system (V) Current financial position - Use financial
analysis tools - Compare with
competitors and standards. List KPIs
(Key Performance Indicators) 10
points.
Analysis of Organization (VI)
Mission, Vision, Core Values, Operating
Guidelines, Core Competencies, Goals 10 pts.
Analysis of Organization (VII)
Current Strategies, Alignment with goals.
Compares with competition. Completes
SWOT analysis and Gap analysis for
organization. Suggest strategies.
Evaluates strategies 20 points
Analysis of Organization (VIII)
Functional Strategies (10 pts)
Fails to demonstrate
knowledge of, & ability to
apply, theories needed for
most requirements - 0-5 pts.
Scoring Key:
____________
____________
____________
____________
Strategic Audit
I.
II.
Identification of the Industry and the Competitors -- Industry definition is necessary so that competitors can be identified; macro-environmental forces that affect the
organization and its industry can be assessed, and the organizations relative strengths and weaknesses can be compared to other organizations within the industry.
III.
IV.
V.
VI.
Analysis of the Organization (Mission, Vision, Core Values, Operating Guidelines, Core Competencies, Goals)
A. What is the mission of the organization? Has the mission changed over time?
B. What is the vision of the organization? Has the vision changed over time?
C. What are the organizations core values and operating guidelines?
D. What are the organizations core competencies? How are they unique?
E. What are the organizations broad and specific goals?
VII.
VIII.
IX.
Analyze organizations improvement/change initiatives (e.g., Six Sigma, SQM, TQM, Lean Manufacturing, JIT, Process Reengineering, High Performance Work
Teams, Assessment using Malcolm Baldrige National Quality Award Criteria, ISO 9000, ISO 14000, Benchmarking, Balanced Scorecard, etc.)
A. Previous & current impact/success of improvement initiatives.
B. Alignment of improvement initiatives and integration into strategic management of the organization.
C. Comparison of improvement initiatives with other organizations within and outside the industry.
Conclusion and Future of Organization
A. Comment about the organizations profile for future competitiveness and success.
B. What does the organization have to do right to succeed (organizations Critical Success Factors)?
C. What are the expected results in terms of short-and long-term profitability and survival?
X.