Course Syllabus –Summer 2015

MGT 5391 – Strategic and Global Management

Instructor: G. Tyge Payne, PhD, MBA, RPh

Office: RCB E333

Office Hours: By Appointment Only; Arrange through TA

Office Phone: (806) 834-1514

E-mail: ; (turn assignments in to gmail account)

Course Website:

TA: Jeff Chandler,

COURSE DESCRIPTION

This course provides students an opportunity to draw upon previous experiences and education to apply various business concepts and analytical tools to complex problems and issues in organizational settings. Specifically, this course is designed to develop a basic understanding of why some firms or organizations are more successful than others. Strategic management explores how firms achieve competitive advantage (which leads to long-term success) in the context of single and multi-business firms. Drawing upon key strategic management theories, students will learn the essence of strategic analyses and decision-making in a competitive and constantly-changing setting.

COURSE OBJECTIVES

The principle concern of business managers is the relationship between the organization, its strategy, and the environment—at the economic, regulatory, and industry levels. This relationship is both very complex and dynamic. Successful organizations find ways to adapt to and/or manipulate this relationship in order to create value and successfully develop sustainable competitive advantage. This class focuses on this basic concept by demonstrating the different aspects of strategic decision-making that facilitate competitive advantage. The objectives of this course are established to:

  1. Develop thinking skills of practicing managers when evaluating key strategic decisions in a larger environment. We will focus on three simple, yet critical questions:

1)Where is the organization now?

2)Where does the organization need to go?

3)How does the organization get there?

  1. Provide the student with an appreciation for the strategic perspective and its complexity, which provides the foundation for critical thinking at the graduate business level.
  2. Develop recognition and understanding of:
  • Situations where strategy can be a comprehensive element of value creation and competitive advantage,
  • Strategic implications of decisions made by top managers, and
  • Tactical implications of decisions made by both top managers and mid-level managers.
  1. Develop interpersonal and communication skills.

COURSE RESOURCES

  1. Contemporary Strategic Analysis (8thEd) (2011) by Robert Grant
  2. Deep Dive: The Proven Method for Building Strategy, Focusing Your Resources, and Taking Smart Action (2009) by Rich Horwath
  3. Playing To Win: How Strategy Really Works (2013) by A.G. Lafley & Roger L. Martin
  4. Good Strategy Bad Strategy: The Difference and Why it Matters (2011) by Richard Rumelt

ASSIGNMENTS AND GRADING

There are five assignments for this course; due dates are give in a separate class schedule table. The primary assignment is the Strategic Alternatives Project, which reflects the culmination of your MBA studies. Points earned for each grade component will be summed to obtain a total score for the course. Final letter grades will follow the standard scale of A = 900 points or greater; B = 800-899; C = 700-799; D = 600-699; and F = 599 or below. Components of the final grade will consist of the following:

Book Critique I 100 points

Book Critique II100 points

Book Critique III100 points

Project Presentation200 points

Strategic Alternatives Project500 points

Total 1000 possible points*

Assignments #1– 3

Turn in a two to three page critique for each of the books listed below. In your critique of the book identify key points that you think will be valuable to you in the years to come. Additionally, identify what parts, if any, of the book you felt were less valuable to you. Discuss how you have successfully and/or unsuccessfully applied these management concepts/tools in your own organizations and how you plan to apply these tools to your organization in the future. Then on a scale of 1 to 10 (ten being the best) give an overall assessment of the book.

Book 1:Horwath

Book 2:Lafley & Martin

Book 3:Rumelt

Assignment #4 – Strategic Alternatives Project

The project should primarily be a research paper covering yourorganization in detail. Focus, of course, should be placed on the strategic problems and issues that exist within and about that key organization. Details concerning format and specific content areas are available in the Strategic Alternatives Project document available at the end of this document. In general, the length should be between15 and 20 pages of text, double-spaced, 1” margins, and 11-12 font. Tables, graphs and figures are encouraged. This assignment will primarily cover the strategic management tools ofstrategic analysis, strategy formulation and strategy implementation that are covered in class and the textbook. If you are not currently a part of an organization, you may, as an alternative develop a business plan for a new business that you would like to start or an existing organization that is pre-approved by the instructor.

Assignment # 5 - Presentation

The presentation should be brief professionalvideo presentation over the strategic alternatives project. Professionalism is expected along with solid content. Length of the presentation should be about 7 minutes and should not exceed 10 minutes in overall time. Your ability to clearly and succinctly present the key conclusions of your analysis is the key to a strong grade. This presentation should include PowerPoint or other visual presentation tools. You may either video the presentation to 1) post on an external cite (e.g., YouTube), providing me with a link to the video, or 2) provide me with a video file via the designated Gmail account. Easily compatible video formats are required, such as MP4, MOV, MPEG-4, or WMV. If you are unfamiliar with the necessary technology to record yourself, make sure that you seek help (from other classmates or the technology experts at TTU) in plenty of time to complete the assignment on time. Late submissions will be penalized heavily.

OTHER ISSUES

Student Support Services: The University supports a variety of student success programs to help you connect with the University and achieve academic success. They include learning assistance, developmental education, advising and mentoring, admission and transition, and federally funded programs. Students requiring assistance academically, personally, or socially should contact the Programs for Academic Support Services (P.A.S.S.) at 806-742-3664 for more information and appropriate referrals.

Students with Disabilities: If you are a student who requires accommodations in compliance with the Americans with Disabilities Act (ADA), please consult with me at the beginning of the semester (today). As a faculty member, I am required by law to provide "reasonable accommodation" to students with disabilities, so as not to discriminate on the basis of that disability. Your responsibility is to inform me of the disability at the beginning of the semester and provide me with documentation authorizing the specific accommodation. The P.A.S.S. programs at TTU will verify and implement accommodations to ensure equal opportunity in all programs and activities.

Academic Honesty: Academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form at Texas Tech University. All persons involved in academic dishonesty will be disciplined in accordance with University regulations and procedures. Discipline may include suspension or expulsion from the University. At a minimum the student will receive an F in the course. Academic dishonesty includes, but is not limited to, cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts. Details regarding academic dishonesty are discussed in detail in the Student Affairs Handbook; a portion is given below.

CLASS SCHEDULE

Date

/

Class Topic

/
Due Date / Readings

July 7

/

Introduction

The Concept of Strategic Management (1) / Read Text Chapters 1, 2, & 6

July 8

/ Strategic Leadership & Direction Setting / Read Text Chapters 3, 4, 8, 9 & 10
July 9 /

Industry & Competitive Analysis (3)

/ Read Text Chapter 5 & 7
July 13 /

Continue with Previous…

Internal Analysis (4) / Read Text Chapter 6
Due: Book Critique #1
July 14 / Business-Level Strategy and Competitive Advantage (5) /

Read Text Chapter 11-16

Read Robin Hood Case

July 15 /

Continue with Previous…

Conclusions /

Robin Hood Case

July 17

/ ------/

Due: Book Critique #2

July 21

/ Open Office Hours (10:30-1)

July 22

/

Open Office Hours (10:30-1)

July 24 /

------

/

Due: Book Critique #3

July 28

/

Last Day of Course

/

Due: Project and Presentation

Strategic Alternatives Project

Professor: G. Tyge Payne, PhD

Overview of Strategic Alternatives Project

The strategic alternatives projects are designed to allow you to make credible recommendations for your organization, based on a quality strategic analyses, that will improve the company’s performance and likelihood for long-term success. Necessary or desired information will likely be missing, but you must make proper assumptions and judgments based on what you can find. In this regard, such projects simulate real business environments; business leaders and strategists never have all the information they would like. To compensate, you should make reasonable assumptions and state them clearly. Make decisions based on the information available and seek out other resources if appropriate (e.g., interview a manager or call the customer relations representative).

There is a wide range of approaches and analytical methods that can be applied—many will be reviewed in class and most are discussed extensively in your text—towards making your recommendations.The following guidelines are only intended to provide basic“building block” ideas of how you should approach analyzing your organization, and hence developing several viable alternatives for the organization. Also, you are required to draw from all your previous courses in business and apply those skills to this project.Note that several analytical tools are listed below; these are examples of how such tools can be utilized to support your alternatives and recommendations.

An organizational analysis is like a puzzle, where the challenge is to take different pieces of information and logically piece it together to develop a picture of the business. The first step in analyzing an organization is to identify the relevant major issues. Then you should dissect the situation, “crunch” the numbers, establish relationships among the information, make comparisons, and develop ratios and percentages. Try to spot trends, both good and bad. Identify items that do not follow the trend line and determine reasons for this. When the issues involve future plans, such as the establishment of a business or a change in business directions, make sure the numbers and the time frames for developing revenues and implementation are realistic. Also make sure all expense factors, including the indirect cost of the recommendations such as management time, have been considered.

Based on the analysis of the organization, you should generate feasible alternative strategies and establish criteria for selecting the best alternative. State the pros and cons of each alternative, and support your recommendations with your reasoning and justification. For example, your recommendations should be very specific, including plans for implementation, time frames, and the specific performance results that can be expected. The cost and level of risk of your recommendations should also be considered. Proforma financial statements for one to three years may be developed to show the combined financial impact of your recommendations. Your recommendations should satisfy the questions of what, why, when, how, where, and who. The recommendations should then be prioritized ending with one key strategic recommendation.

Basic Guidelines for Strategic Alternatives Project

  1. Executive Summary (1 pg): After the title page, provide a summary of the key issues and the main points of your goals and action recommendations. This should be very concise and serve as an overview for the entire paper.
  2. Issues and Outlook Profile (3-5 pgs): This section should broadly address the most important issues confronting the firm and the significance of these issues. Specifically, this section should give consideration to, but not an extensive discussion of, each of the following subjects:

1)Key Macro-Environmental Issues

2)Key Industry Issues

3)Competitors and Key Competitive Issues (e.g., financial comparisons)

4)Organizational Competencies, Capabilities, and Related Internal Issues

Within this discussion, this section should clearly identify and evaluate the organization’s current strategy and sources of competitive advantage, if any. Additionally, you should note relative factors influencing the organization such as the organization's current (a) scope of activities, (b) organizational structure, (c) management systems, and (d) leadership issues and style. For instance, ask: How successful has the strategy been? Compared to competitors, how is the performance of the company? Does the current strategy effectively exploit the company's strengths and defend against weaknesses? What has been the firm’s level of, or interest in, strategic activities up until the current time period? Very broadly, where is the firm headed? Consider a 3-5 year time frame both prior to the present and into the future.

  1. Development of Strategic Alternatives and Options (5-10 pgs): This section and the next comprise the largest (or most important) sections of the paper and should be given the most weight and attention. If you are not in a leadership position, it may be most helpful to put yourself in the shoes of an outside consultant who is been hired by the protagonist(s) or the top-management team (TMT) in the organization. To receive your full consulting fee, you must persuade the TMT to adopt your specific recommendations instead of some competing consulting team’s recommendations.

Based on information gathered in association with the above issues section, you should develop and clearly state three viable, strategic alternatives that the company can take that address the big problems/issues the organization is currently facing. The alternatives developed should be evaluated extensively, taking under consideration the findings and trends that emerged as you analyzed the organization throughout the semester. The alternatives should be strategic and mutually exclusive, reflecting extensive thought and discussion within and amongst your group members. You should clearly discuss the pros (benefits) and cons (risks) associated with the alternatives in such a way as to demonstrate your understanding of the organization and the context within which it operates.

  1. Strategic Choice and Further Evaluation of Recommendation(3-7 pgs): In this section, you should select one of the three alternatives developed in the above section to serve as the main recommendation for the organization. This final recommendation should, in most cases, be challenging, yet achievable – creative and innovative, yet feasible. It should fit well with the organization’s vision, mission, and goals (unless that is the final recommendation). In short, the final recommendation should be documented in detail as to why it was the final choice and the best option.

Ask yourself, is this recommendation financially viable? Does the proper personnel exist? How would you monitor the accomplishment and success of the recommendation? Is the timing right to implement such a plan? Can the organization afford to wait? Basically, you should extensively elaborate on why this choice is best and what are the issues and implications for moving forward with this recommendation at the current time.

  1. Strategic Implementation and Control Mechanisms (an Action Plan) (3-7 pgs): Develop a detailed strategic action plan which addresses all or most of the salient issues you identified in the sections above. For example, you might have identified a new, attractive national market to sell to (external analysis); yet, the firm lacks the experience and/or resources to move into the market with sufficient speed or force (internal analysis). You might have recommended that the firm form an alliance with another firm. Here, you should provide more specific details about the critical aspects of alliance formation: partner selection criteria, degree of formality (equity-based vs. loose commitment); contributions of each partner (cash vs. technology vs. distribution channel vs. marketing knowledge); relative control over alliance for each partner; roles and responsibilities of each partner; and, expected results for the alliance.

Each component of the overall action plan should contain the following: sub-section label, a set of specific "strategic" tasks to be carried out, justifications, a brief description of new resources required/to be developed, and a brief description as to how this action component will contribute to the attainment recommendation identified. This should all be very specific and tuned to your organizations current situation!

  1. Conclusions (1-2 pgs): End the study with a basic rational for why this study is accurate and useful. Be persuasive and interesting!
  2. References (unlimited): You should include at the end of the project a list of all references used in the development of your study. You should cite the references in the text such as (Payne, 2015). Then the full citation record should be given in alphabetical order in the reference section. APA format is preferred, but consistency and professionalize are paramount. You are encouraged to use, but discouraged from using too much, company-supplied information (e.g., annual reports, 10-Ks, company websites) to write the project. In other words, you should also analyze a company using business press information, not just information the company’s management provides. Also, students should be leery of Internet information from questionable sources. Accordingly, the following are good sources for the project:
  3. Robert Morris & Associates Annual Statement Studies
  4. Standard & Poor’s Industry Surveys
  5. Business press articles about the company, its industry, or its competitors (e.g., Wall Street Journal, Business Week, or Fortune).

Aesthetics

The body of the paper should contain the sections identified above. The length of the paper should be between 15 and 20 pages of text. Excessively short or long reports with little value-added will detract from the report's contribution and impact. Utilization of appendices, tables, models and graphs can help contain text length without ridding the project of important information. Tables, figures and graphs are encouraged when they can easily deliver necessary information to the reader.