Indian Institute of Management Bangalore Corporate Strategy (Corpstrat) Epgp Elective (3 Credits) Term Iv Instructor: Srinivasan R (CSP)
Indian Institute of Management Bangalore Corporate Strategy (Corpstrat) Epgp Elective (3 Credits) Term Iv Instructor: Srinivasan R (CSP)
Indian Institute of Management Bangalore Corporate Strategy (Corpstrat) Epgp Elective (3 Credits) Term Iv Instructor: Srinivasan R (CSP)
Schedule
Module 1: Introduction to corporate strategy
Readings:
From competitive advantage to corporate strategy
Creating corporate advantage
Corporate strategy: The quest for parenting advantage
Session 1: Understanding a firms corporate strategy and the concept of corporate advantage
Case: None
Session 2: Building corporate advantage
Case: Monsantos March into Biotechnology (A)
Assignment questions
1. Why did Monsanto decide to pursue biotechnology?
2. Evaluate the approach taken by Hanley and Schneiderman to build internal capabilities for
biotechnology at Monsanto. What could they have done differently?
3. Identify and discuss the pros and cons of different ways in which Monsanto could obtain
external knowledge in biotechnology.
4. Why did Monsanto choose BST as the first product to pursue? Do you agree with this
choice? Why / why not?
5. Should Monsanto organize its biotechnology R&D by function or by market? Why?
6. What direction should Monsantos biotechnology research take in the future?
Module 2: Managing a portfolio of businesses
The nature of diversified business groups: A research design and two case studies
Why focused strategies may be wrong for emerging markets
The right way to restructure conglomerates in emerging markets
Chapter 17 (Grant)
Session 3: Role of the corporate office
Case: RPG Enterprises, 1995
Assignment questions:
1. Is it advantageous for a company to be part of RPG Enterprises?
2. Does the RPG Enterprises reputation help the group companies in any way?
3. How is this changing after 1991?
4. Evaluate the restructuring plan that Harsh Goenka has put in place.
Readings:
leverage as they forward integrate into services? Do they need to build/ acquire new
capabilities?
3. How does Powerol achieve its growth aspirations/ sustain its growth trajectory? Should it
change its primary business model?
Session 9: Managing vertically integration/ diversification (acquisitions)
Case: Havells India: The Sylvania acquisition decision
Assignment questions:
1. Does the proposed acquisition make strategic sense for Havells? Why or why not?
2. What are the major risks associated with this acquisition? Can these be managed, given the
differences in product mixes between Havells and Sylvania?
Session 10: Managing a vertically integrated firm
Case: Sharp Technology: Technology strategy
Assignment questions:
1. Why has Sharp been successful for so long?
2. Is Sharp today an end products or a components company?
3. Should Sharp enter into the Intel and Apple joint ventures?
4. How is Sharp able to coordinated and integrate activities across the corporation?
Module 4: Alliances and joint ventures
Readings:
When to ally and when to acquire
Launching a World-class Joint Venture
Competing in Alliance Constellations: A Primer for Managers
Chapter 15 (Grant)
Session 11: Alliances as organizational forms
Case: Corning: A network of alliances
Assignment questions:
1. How appropriate is Houghtons use of partnerships as a means of achieving his strategy?
What benefits and risks do you see? What advice would you offer him in general about
establishing alliances?
2. What implications will the concept of Corning as an evolving network have on the firms
management practice?
3. What are the criteria for evaluating the three proposals before the management
committee? How do the proposals meet these criteria?
4. What are your specific recommendations to the management committee about the three
proposals before them?
Session 12: Managing alliances
Case: Handspring Partnerships
Assignment questions:
1. Rank order the importance of Handsprings various partnerships. What criteria did you use to
rank the partnerships and why? How important were the relationships of Handsprings
founders to their ability to form partnerships? With respect to the form and use of
partnerships, how was Handsprings position different from other start-ups? What are some
of the detrimental aspects of partnerships? How should a start-up avoid them?
2. What were the pros and cons to Handspring of licensing Palms OS? Should Handspring have
pursued parallel paths by developing their own OS, in addition to licensing Palms? Were
there special risks in the relationship with Palm? If so, what were they?
Session 13: Managing international joint ventures
Case: Xerox and Fuji Xerox
Assignment questions:
1. What role has Fuji Xerox played in Xerox.s global strategy? How do you expect this role to
change in the future?
2. Is Fuji Xerox a successful joint venture in 1990? How do you measure its performance?
Please be as concrete and specific as possible.
3. What were the key success factors in this alliance in the past? Do you expect these factors to
change in the future?
4. Consider the different options for reorganization listed in Exhibit 11. Select one option in
each functional area and be prepared to explain why you prefer it over the others.
Module 5: Mergers & Acquisitions strategy
Readings:
The Dubious Logic of Global Megamergers
Building Deals on Bedrock
Why do firms merge/ acquire?
Chapters 6, 7 & 8 (WMM)
Session 14: Merger motives
Case: Idea Cellulars acquisition of Spice Telecom
Assignment questions:
1. Do you think Idea Cellular should go ahead with the acquisition of Spice Communications?
What are the motives for Idea to acquire Spice? What are the possible benefits for Idea
Cellular due to this acquisition?
2. What would be the role of TMI in the merged entity? Should Idea buy out TMIs stake as
well?
3. How should Idea & Spice handle the revised M&A guidelines issued by DOT?
Session 15: Mergers for international expansion and diversification motives
Case: Hindalcos acquisition of Novelis: The making of a giant
Assignment questions:
1. Was the merger a good decision? Should it have happened at all?
2. Did Hindalco pay a fair price for Novelis?
3. Now that the deal has happened, how much value addition has been done to both the
parties involved in the acquisition? How much of Novelis turn around can be attributed to
Hindalco? How much value has been added to Hindalco by Novelis?
4. Has Hindalco eroded the value to its shareholders?
Session 16: Financial motives of mergers
Reading: Chapters 9 & 10 (WMM)