THE UNIVERSITY OF TEXAS AT ARLINGTON
BUSA 4322 – Organization Strategy
Spring 2006
Section: 044
Instructor: Abdul Rasheed
230 Business Building
Ph: 272-3867 e-mail:
Office Hours: By appointment
Class Time and Location: Mondays and Wednesdays Room 251
9:30 - 10:50 p.m.
Required Text: Dess, G.G., Lumpkin, G.T., and Eisner,A.B. StrategicManagement: Text and Cases.. (2nd Edition) McGraw-Hill Irwin 2006.
Additional Reading: Businessweek, Fortune, WallStreetJournal, etc.
CourseDescription
The focus of this Business Policy course is on corporate level and business unit-level strategy formulation and implementation. It requires the application of the knowledge and techniques learned in the earlier courses in an integrated fashion and also introduces the critical business skills of planning and managing strategic activities. The topics to be covered include the relationship of organizations to their environments, organizational mission and objectives, formal and informal approaches to strategic planning, the role of organizational structure in the context of strategy formulation and implementation and the mechanisms for monitoring and evaluating the effectiveness of strategic decisions and their implementation.
Along with the text material, case studies will be used in this course as a mechanism for the development of analytical and decision-making skills and highlighting the reality of organizational and environmental uncertainties in strategic decision-making. In short, this course attempts to encourage an integrated multifunctional, "general management" perspective of the organization and its environment to develop skills necessary and appropriate to corporate-level and divisional-level policy analysis, formulation and implementation. You will be required to study the assigned text and cases, analyze them and share your insights with the rest of the class.
EvaluationandGradingProcedure
The final grade for the course will be based on performance in the following:
Exams 50%
Wall Street Journal Assignment 20% (See page 8 of syllabus)
Term Paper 20%
Class Participation 10%
See next page for important information about evaluation and grading.
Assessment Exam
This class has been selected to receive an Assessment Exam this semester. Most likely, this exam will be administered by an external agency sometime in early to mid April. The Assessment Exam will cover the entire course material and will be an important part of determining whether our students are meeting their learning objectives. Your final grade in the course will reflect your performance in the Assessment Exam. The exact weight to be placed on the Exam is yet to be decided. Therefore, the distribution of weights provided on page 1 is subject to further changes. We may also be making minor changes to our class schedule to accommodate the Assessment Exam.
This is a cell phone free class.
You are not allowed to connect to the internet during the class.
BUSA 4322
Tentative Course Outline
Session Date Topic/Assignment
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1 Jan 18 Introduction/Administrative Matters
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2 Jan 23 Chap 1: Strategic Management: Creating Competitive Advantages
- Strategic Management Process
- Stakeholder Management - Vision and Mission
3 Jan 25
Case: The Skeleton in the Corporate Closet (Case 36, p. 834)
Issues for Analysis
1. Was it possible for the right thing to be a lie?
2. Should Hap Parker disclose the contents of the letter?
3. What obligations does Hap Parker have to his multiple stakeholders?
4. What options does Hap Parker have?
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4 Jan 30 Chap 2: Analyzing the External Environment of the Firm
- General Environment
5 Feb 1 - Industry Analysis
- Strategic Groups
6 Feb 6
7 Feb 8 Case: Crown Cork & Seal in 1989 (Case 10, p. 597)
Issues for Analysis
1. Using Porter’s framework, discuss each of the five competitive forces facing the industry.
2. What are the key strategic issues that Avery needs to consider? What strategic options are open to him?
3. How well did Crown Cork do under John Connelly? What were the keys to their success?
4. What significant changes are taking place in the industry? How should the new CEO, Bill Avery, respond? Is it finally time to change the Connelly strategy that has been successful for over 30 years?
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8 Feb 13 Using Library Resources: An Overview
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9 Feb 15 Chap 3: Assessing the Internal Environment of the Firm
- Value Chain Analysis
& - Resource-Based View
10 Feb 20 - Evaluating Performance
Case: Green Mountain Coffee Roasters (Case 18, p. 670)
IssuesforAnalysis
1. Analyze Green Mountain’s external environment. What are the general environmental factors that have impact on this industry?
2. What are the external forces of competition affecting this industry?
3. Analyze the Green Mountain internal environment. What does the value chain look like? What about resources? How would you evaluate strengths, weaknesses and synergies?
4. What business level strategy does Green Mountain appear to pursue? What niche (cost, differentiation, focus) do they fill in this highly competitive industry, and is it sustainable?
5. What corporate level strategy should Green Mountain pursue?
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11 Feb 22 Chap 4: Recognizing a Firm’s Intellectual Assets: Moving beyond a Firm=s Tangible Resources
- Human Capital
- Social Capital
- Technology
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12 Feb 27 Chap 5: Business Level Strategy
- Cost Leadership
- Differentiation
- Industry Life Cycle
Case: Outback Steakhouse Goes International (Case 28p. 764)
IssuesforAnalysis
1. Evaluate the various aspects of Outback’s strategy. Why has the company been so successful?
2. Are Outback’s various strategy components sustainable in the domestic market? Are they transferable to the international markets? Why? Why not?
3. What markets should the company enter? In what order? What modifications in strategy will be required for these markets?
4. Is expansion into international markets appropriate for Outback at this time?
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13 Mar 1 Chap 6: Corporate-Level Strategy: Creating Value through Diversification
- Related and Unrelated Diversification
- Mergers, Acquisitions, Alliances and Internal Development
- Managerial Motives
14 Mar 6 Overflow
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15 Mar 8 MID-TERM EXAM
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16 Mar 20 Case: Wal-Mart’s Strategy for the 21st Century: Sustaining Dominance (Case 41, p. 876)
IssuesforAnalysis
1. Describe Sam Walton’s marketing/pricing concepts and how his basic beliefs shaped Wal-Mart corporate culture.
2. How did Wal-Mart’s management build on these fundamental values and establish distinctive competencies to sustain growth throughout the 90’s?
3. What were the major challenges facing the firm as 2003 ended?
4. Develop a “strategic intent” for the firm, recommending the set of future/targeted distinctive competencies required to sustain 15+% annual growth over the next 5 years.
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17 Mar 22 Chap 7: International Strategy: Creating Value in Global Markets
& - National Competitiveness
18 Mar 27 - International Expansion
- Global and Multidomestic Strategies
Case: Go Global – or No? (Case 17, p. 666)
IssuesforAnalysis
1. Should DataClear go global?
2. What might be some of the motivations for DataClear to pursue international expansion? What are the associated risks?
3. If DataClear moves to an international operation, what type of structure should they adopt to ensure close and effective working relationships between and among their various functional activities?
4. If they remain a domestic operation, what might DataClear need to consider regarding their current structure?
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19 Mar 29 Chap 8: Digital Business Strategy: Leveraging Internet and E-Business Capabilities
- Internet and Five-Forces Analysis
- Competitive Strategies
- Sustainability
20 April 3 Case: Panera Bread Company (Case 29, p. 783)
IssuesforAnalysis
- How would you approach the question of “Can Panera achieve its ambitious goals in light of the macro environmental forces? How would you characterize the environment in which Panera operates, and how would you evaluate the opportunities and threats to Panera or its business model?
- How would you characterize the strategies of Panera Bread Company, and evaluate its effectiveness?
- Based on the answers to the above two questions, what would your answer be to the case question of attainability of Panera’s goals?
- What general conclusions can you draw about effective strategic management?
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21 Apr 5 Chap 9: Strategic Control and Corporate Governance
- Traditional Approach
- Behavioral Control
- Strategic Control at Different Levels
22 Apr 10 Case: JetBlue Airways (Case 22 p. 700)
Issues for Analysis
1. Analyze the industry environment of JetBlue.
2. Analyze the internal environment of JetBlue
3. What are the salient aspects of JetBlue’s culture?
4. Discuss the bases of JetBlue’s competitive advantage, and the merits and demerits of both the components. Are combination strategies better? Is JetBlue’s competitive advantage sustainable?
5. How will the new Embraer Jets impact the firm’s strategy? How should they handle it?
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23 Apr 12 Chap10: Creating Effective Organizational Designs
- Patterns of Growth
- Structural Forms
- Boundaryless Structures
24 Apr 17 Assurance of Learning Testing Related Discussion
Overflow materials
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25 Apr 19 Chap 11: Strategic Leadership: Creating a Learning Organization and an Ethical Organization
- Leadership Activities
- Knowledge and Creativity
- Ethics
26 Apr 24 Case: Trouble in Paradise (Case 40, p. 872)
IssuesforAnalysis
1. Is the current joint venture structure adequate to ensure close and effective working relationships between and among the various functions and activities?
2. What might be some of the original motivations for Heartland Spindle to pursue an international operation? What are the current associated risks?
3. Which entry strategy should Heartland Spindle have chosen that might have minimized the degree of investment risk while maintaining appropriate ownership and control? Should they consider changing their strategy now?
4. Evaluate Mike Graves’ ability to be a change agent and to overcome barriers?
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27 Apr 26 Chap 12: Managing Innovation and Fostering Corporate Entrepreneurship
- Innovation
- Corporate Entrepreneurship
- Entrepreneurial Orientation
28 May 1 Case: Segway: A New Dimension in Human Transportation (Case 35, p. 825)
IssuesforAnalysis
1. To what degree has the Segway Company identified and analyzed the overarching goals of the organization?
2. Does Segway need a mission? If so, what should it be?
3. What are some specific strategic objectives Segway should pursue; what is the time frame and how should each be measured?
4. To what degree has the Segway Company showed adequate awareness of the opportunities and threats they face in the external environment, and the resources and capabilities of their internal organization?
5. What’s going on in the external environment that might have to be considered in order to craft an effective strategy for Segway?
6. What internal resources and capabilities does Segway have that might help them craft an effective strategy?
7. To what degree has the Segway Company formulated an effective strategy for gaining a competitive advantage?
8. Who are Segway’s competitors?
9. What generic strategy might Segway choose to use to further develop this competitive advantage? What problems do you foresee with your chosen strategy?
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29 May 3 Chap 13: Recognizing Opportunities and Creating New Ventures
- Opportunity Recognition
- Entrepreneurial Resources
- Entrepreneurial Strategy
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F I N A L E X A M S
May 8 - Monday 9 – 11:00 am – 12:20 pm
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Two Important Rules to Remember
1. Switch off cell phones when you come to the class.
2. During the class, you cannot engage in activities unrelated to the class like reading newspapers, doing assignments for other classes etc.
Violation of the above rules will result in severe penalties
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WallStreetJournalAssignment
The purpose of this assignment is to analyze critically a recent article (dated within four months from the assignment due date) from the WallStreet Journal selected by the student. The assignment is to be done in groups of two. "Base articles" will be approved on a "first come/first served" basis. There will be only two groups permitted to use the same basic article. Approvals for base articles are to be obtained before Feb 13, 2005, and the assignment is due by March 8, 2005.
An illustrative list of issues that the WSJ article may focus on is given below.
Internal Growth
Concentration
Market Development
Product Development
Innovation
Joint Ventures
External Acquisition Growth
Horizontal Integration
Vertical Integration
Concentric Diversification
Conglomerate Diversification
Disinvestment
Retrenchment, Operating Efficiency
Turnaround, Product/Marketing Refocus
Divestiture, Liquidation
Management Development
Labor Relations
Internationalization
Marketing (or emphasis on another functional area)
Corporate Culture
Reorganization, Restructure
Strategy Implementation
Organization Structure
Importance of Industry Context on Organizational Performance
You should address issues such as the following (maydifferwithregardto topicareas):
1. What is the rationale (or lack thereof) for the action/decision?
2. Is the action/decision consistent with the organization's overall
strategy?
3. What do you think will be the implications of the action/decision
i.e., how should the action/decision improve or detract from the
organization's performance?
To address the above issues, the student should use a minimum of seven (7) outside sources of information. Suggested references include Annual Reports, 10-K Forms, BusinessWeek, WallStreetJournal, Forbes, Fortune, and Moody's IndustrialManual. Do not rely too much on the same references -- select a variety.
The written assignments should be approximately ten double-spaced (12 CPI) pages, (excluding references and Exhibits). Ensure that the paper has an executive summary and that it is divided into sections and subsections in a logical manner. "Stream of consciousness" papers will be severely penalized.
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