BGS 371/MKT 372

Corporate Political Strategy

Syllabus [OCTOBER 13, 2013 DRAFT]

Spring 2014

M/W (3:30–4:45)

Timothy Werner, Ph.D.

Office: CBA North 5.248

Email:

Office Hours: M/W 11-12:30 and by appointment

Description

This course will explore the relationship between business and its stakeholders – including the government, social movements, NGOs, and activists – in the United States and around the world, with the goal of preparing you, as future managers, to develop and implement non-market strategies. Particular emphasis will be placed on reputation and brand management in the non-market. The course is divided into four parts: 1) understanding the non-market environment of the firm and its relationship to the market environment; 2) learning how to develop a general non-market strategy for a firm and how to evaluate the efficacy of different non-market tactics; 3) examining the role of non-market factors across different substantive public policy areas of concern to firms; and 4) exploring how non-market factors vary cross-nationally and how they are shaped by international agreements.

The course will consistent of case-based discussions and lecture will be kept to a minimum. Additionally, we will host two guest speakers.

Requirements and Assessment

A required case packet is available from Harvard Business School Publishing at the following link (also posted to Canvas):

I will also post a small number of additional readings to the course’s Canvas page ([C] denotes these readings below).

I will determine your grade for the course based on the following:

– Attendance and Participation: 35 percent

– Case Study Memoranda (2): 10 percent each

– Congressional Insights Simulation: 15 percent

– Final Exam: 30 percent

Details on the case study memoranda and the simulation exercise will be provided separately, and the date for the final exam is provided below in the Tentative Schedule.

Additional Information on Grading

I intend to follow a curve in this course in which I award roughly half As and half Bs. However, I will not hesitate to award grades of C or lower to students whose performance (or lack thereof) justifies such a mark.

Given the case-based nature of the course, attendance is required and active participation of all course members is critical. Beginning with the third class session, two absences are permitted without penalty to accommodate illness, interview scheduling, etc. For each absence beyond these initial two, 3 points will be deducted from the 35 percentage points allocated for participation. Two tardies will count as one absence. There are no exceptions.

Notifications regarding Disabilities, Religious Holidays, Campus Safety, Academic Dishonesty, and Professionalism

Students with disabilities may request appropriate academic accommodations from the Division of Diversity and Community Engagement, Services for Students with Disabilities, 512-471-6259, http://www.utexas.edu/diversity/ddce/ssd/.

By UT Austin policy, you must notify me of your pending absence at least fourteen days prior to the date of observance of a religious holy day. If you must miss a class, an examination, a work assignment, or a project in order to observe a religious holy day, you will be given an opportunity to complete the missed work within a reasonable time after the absence.

Please take the time to review the recommendations regarding emergency evacuation from the Office of Campus Safety and Security, 512-471-5767, http://www.utexas.edu/safety

The McCombs School of Business has no tolerance for acts of scholastic dishonesty. Students are expected to abide by the School’s and University’s policies on scholastic dishonesty. The responsibilities of both students and faculty with regard to scholastic dishonesty are described in detail in the BBA Program’s Statement on Scholastic Dishonesty at http://www.mccombs.utexas.edu/BBA/Code-of-Ethics.aspx. By teaching this course, I have agreed to observe all faculty responsibilities described in those documents. By enrolling in this class, you have agreed to observe all student responsibilities described in those documents. If the application of the Statements on Scholastic Dishonesty to this class or its assignments is unclear in any way, it is your responsibility to ask me for clarification. Students who violate University rules on scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and/or dismissal from the University. Since dishonesty harms the individual, all students, the integrity of the University, and the value of our academic brand, policies on scholastic dishonesty will be strictly enforced. You should refer to the Student Judicial Services website at http://deanofstudents.utexas.edu/sjs/ to access the official University policies and procedures on scholastic dishonesty as well as further elaboration on what constitutes scholastic dishonesty.

Finally, students are also expected to abide by the McCombs Classroom Professionalism Policy, which includes a prohibition on laptop computers and similar devices (e.g., tablets and smart phones), absent a necessary learning accommodation.

Tentative Schedule

January / Topic & Required Reading
13 / Organizational Meeting
- Palin, Adam. 2012. “Schools widen their political horizons.” Financial Times November 4. [C]
- Porter, Michael. 1996. “What is Strategy?” Harvard Business Review. [C]
15 / Market & Non-Market Environments
- Baron, David P. 1995. “Integrated Strategy: Market and Nonmarket Components.” California Management Review 37 (2): 47–65. [C]
20 / Market & Non-Market Environments, ctd.
- Case: Consumer Awareness or Disease Mongering? GlaxoSmithKline and the Restless Legs Syndrome
22 / Non-Market Competition: Public Opinion and Social Movements
- Case: Wal-Mart: The Store Wars
27 / Non-Market Competition: Non-Governmental Organizations
- Case: Of Orangutans and Chainsaws: Cargill Inc. Confronts the Rainforest Action Network Advocacy
29 / Overview of Non-Market Strategy
- Bonardi, Jean-Philippe, Amy J. Hillman, and Gerald D. Keim. 2005. “The Attractiveness of Political Markets: Implications for Firm Strategy.” Academy of Management Review 30 (2): 397–413. [C]
February
3 / Implementing Non-Market Strategies I: Electoral Politics
- Case: Rethinking Political Activity at Target
5 / Implementing Non-Market Strategies II: Legislative Lobbying
- Case: Lobbying for Love? Southwest Airlines and the Wright Amendment
10 / Implementing Non-Market Strategies III: Industry-wide Coalitions
- Case: Politics of Tobacco Control: A History of the U.S. Tobacco Industry
12 / Implementing Non-Market Strategies IV: Grassroots Advocacy
- Walker, Edward T. 2014. Grassroots For Hire. Cambridge, UK: Cambridge University Press. Chapter 7 excerpt (pp. 227-256). [C]
17 / Implementing Non-Market Strategies V: The Courts
- Case: AT&T v. Microsoft (A): IP Litigation Strategy
19 / Guest speaker
February
24 / Congressional Insights Simulation: Day One
26 / Congressional Insights Simulation: Day Two
March
3
5 / Congressional Insights Simulation Review
Strategy Implementation Reviewed
- Case: AIG and the American Taxpayers
10-12 / Spring Break: No class
17 / Regulation
- Burrows, Vanessa K., and Todd Garvey. 2011. A Brief Overview of Rulemaking and Judicial Review. Washington, DC: Congressional Research Service. [C]
19 / Regulation, ctd.
- Case: Goodyear and the Threat of Government Tire Grading
24 / Environmental Regulation
- Case: Keystone XL Pipeline
26 / Guest Speaker
31
April
2 / Financial Market Regulation
- Case: The Volcker Rule: Financial Crisis, Bailouts, and the Need for Financial Regulation
Comparing Non-Market Environments
- Khanna, Tarun, Krishna G. Palepu, and Jayant Sinha. 2005. “Strategies that Fit Emerging Markets.” Harvard Business Review. [C]
7 / Non-Market Issues in the European Union
- Case: International Lobbying and The Dow Chemical Company
9 / Non-Market Issues in Latin America
- Case: Colbun and the Future of Chile’s Power
14 / Non-Market Issues in China
- Case: Google in China (A)
16 / Non-Market Issues in India
- Case: Infosys in India: Building a Software Giant in a Corrupt Environment
April
21 / Non-Market Issues in Africa
- Case: Life, Death, and Property Rights: The Pharmaceutical Industry Faces AIDS in Africa
23
28
30
May
X / International Trade Issues
- Case: World Trade Organization and the Seattle Talks
International Trade Issues, ctd.
- Case: Cemex and Antidumping
Review Session & End of Course Evaluations
Final Exam (x-x)

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