MIDS 454 d.case.edu



MIDS 454

Models of Management

Mondays and Thursdays, 6:00-10:15 p.m.

Summer 2001

Dr. Stanton Cort, Marketing Dr. Vasudevan Ramanujam, Policy/Strategy

Office: Enterprise 598 Office: Enterprise 510

Office Phone: 368-2064 Office Phone: 368-5100

E-mail: sgc3@po.cwru.edu E-mail: vxr@po.cwru.edu

Office Hours: by appointment Office Hours: by appointment

Dr. Ronald Fountain, Finance Dr. Matthew Sobel, Operations

Office Phone: (216) 621-1985, Ext. 3005 Office: Enterprise 601

E-mail: rgf2908@po.cwru.edu Office Phone: 368-6003

Office Hours: by appointment E-mail: mjs13@po.cwru.edu

Office Hours: by appointment

Dr. Julia Grant, Accountancy

Office: Sears 642

Office Phone: 368-3811

E-mail: yxw36@po.cwru.edu

Office Hours: by appointment

Course Objective

This course explores methods for modeling and measuring business processes at the firm, business unit, and work group levels. Emphasis is placed on the information required to evaluate performance at the three levels, to diagnose opportunities for improving the design of the processes and for evaluating financial investments in alternative process designs. Models for measuring and evaluating processes are drawn from accounting, finance, and operations management to provide a multifaceted view of current performance and opportunities for improvement.

Class Meetings

Because of the quantity of material and pace of coverage, it is essential that students are well prepared for each class meeting. The success of team learning and in-class exercises require that all readings and assignments be done carefully in advance.

Grading Policy

Grades will be weighted based on the number of sessions per topic (finance, marketing, operations, and policy/strategy).

Texts and Required Materials

Groppelli, A.A., and Nikbakht, Ehsan.

Finance: A streamlined course for students and business people,

Hauppauge, NY: Barron’s Educational Series, Inc.

Weil, Roman L, and Davidson, Sydney

Accounting: The Language of Business,

Thomas Horton & Daughters.

Anthony, Robert, Hawkins, David, and Merchant, Kenneth.

Accounting: Text and Cases

McGraw-Hill Higher Education

Saturday, June 2 Orientation Session

Topics: Models of Management: An Overview

The Cycle Model of the Firm

Readings: ?

Monday, June 4 6:00-8:00 p.m. (Julia Grant)

Representations useful to different stakeholders for different purposes

Readings: AHM Chapters 1 and 2

Assignments: C2-1; P1-4, P1-5

Financial Statements of Microsoft, IBM and

Look over the results of Microsoft, IBM and ; compare to the peasants. Carefully consider and analyze the three basic statements. Is there any other important information in the annual report?

Monday, June 4 8:15-10:15 p.m. (Vasudevan Ramanujam)

Topic: Controlling firm performance

Case: Blind Ambition: How the Pursuit of Results Got Out of Hand at Bausch & Lomb

Readings: The Performance Measurement Manifesto

Control in an Age of Empowerment

Thursday, June 7 6:00-8:00 p.m. (Julia Grant)

Useful representations, continued - External Reports

Readings: AHM, Chapters 2, 3, 11; handout

Assignments: C 2-3; C3-2; C11-2

Thursday, June 7 8:15-10:15 p.m. (Vasudevan Ramanujam)

Topics: How industry structure determines firm performance

Analyzing industry structure and profitability

Case: Sunrise Medical Inc.’s Wheelchair Products

Readings: The Structural Analysis of Industries

Generic Competitive Strategies

Competing for Advantage

Monday, June 11 6:00-8:00 p.m. (Julia Grant)

Evaluation of financial position, continued

Readings: AHM, chapters 5 and 6

Assignments: AHM C5-2, Dilly Dairy (handed out in class); AHM C6-3

For Grennell Farm, remember that the income statement starting point, Sales Revenue,

determines much of what follows. In particular, the Cost of Goods Sold is the inventory costs of the products for which revenue has been recognized. The period costs are those incurred during the same period for which the revenue has been recognized. You will need to ‘plug’ Retained Earnings to make the balance sheet balance; then show your reconciliation of the beginning and ending Retained Earnings balances.

What revenue recognition methods do Microsoft, IBM, and use?

What inventory accounting and revenue recognition methods do Microsoft, IBM and use?

What was cost of goods manufactured (or purchased) for each company for the years covered?

Monday, June 11 8:15-10:15 p.m. (Stan Cort)

How marketing helps generate value

Topic: Brain surgery, rocket science and hearing little voices,

The marketing perspective

Marketing capabilities

Marketing functions

ABC analysis

Readings: The Theory of the Business

The e- Capabilities of Market-Driven Organizations

The 4P Classification of the Marketing Mix Revisited

Thursday, June 14 6:00-8:00 p.m. (Julia Grant)

Evaluation of financial position, continued

Readings: AHM Chapter 7, review balance sheet ratios in Chapters 2, 5, and 8

Assignments: AHM C7-1, no journal entries needed—use the transaction analysis

format.

Examine the Microsoft, IBM, statements for information related to depreciation methods and lives, and capitalized interest. Do you gain any insight from considering these disclosures? How does the existence of these assets affect inventories and cost of goods sold?

Thursday, June 14 8:15-10:15 p.m. (Stan Cort)

ABC, QFD, IT, PDQ, and all that

Topics: What is a product service anyway?

Linking the voices of the customer and the company

Linking supply chain members

Readings: The house of Quality

Introduction to Supply Chain Management

Channel Planning

Case: Calyx & Corolla

Monday, June 18 6:00-8:00 p.m. (Julia Grant)

Evaluating the financial position of the firm as a whole

Readings: AHM, Chapters 8, 9

Assignments: AHM P8-3, P8-6 (but use effective interest method, not straight line);

C8-1 (only question 1); P 9-6.

Study all liability and equity information for Microsoft, IBM, and , identifying types of debt, priorities of claims, etc

C8-1 (only question 1); P 9-6.

Study all liability and equity information for Microsoft, IBM, and , identifying types of debt, priorities of claims, etc

Monday, June 18 8:15-10:15 p.m. (Stan Cort)

Letting the customers buy the way they want to

Topics: Supply chain (or access chain) decisions

Managing supply chain members

Readings: From Value Chain to Value Constellation

Characteristics of Electronic Markets

Designing Mature Internet Business Strategies: The ICDT Model

The Power of Virtual Integration: An Interview with Dell Computers’ Michael Dell

Case: Ford Motor Company Supply Chain Strategy

Thursday, June 21 6:00-8:00 p.m. (joint session - Julia Grant and Stan Cort)

Identifying and gathering information for monitoring people and processes – Internal Reports

Readings: AHM Chapters 15 and 16

Assignments: C 15-1; P15-4; P16-1; P16-2

How do the peasants want to be evaluated?

Thursday, June 21 8:15-10:15 p.m. (Stan Cort)

Access chain management

Topics: Cost/expense manage

Revenue/ business-scope enhancement

Cases: Solectron

Ford Motor Company

Monday, June 25 6:00-8:00 p.m. (Julia Grant)

Evaluation of product and process performance over time

Readings: AHM Chapter 17; Chapter18 pp. 557-568; 572-579

Assignments: AHM P17-4; P 18-4

How would you suggest that Microsoft, IBM and allocate overhead?

Monday, June 25 8:15-10:15 p.m. (Stan Cort)

Customer/consumer decision making

Topics: The value of a customer

Structuring markets

Customer decision making

Readings: Manage Marketing by the Customer Equity Test

Taxonomy of Buying Decision Approaches

Case: Calyx and Corrolla (for review and discussion)

Thursday, June 28 6:00-8:00 p.m. (Julia Grant)

Monitoring people and processes; in-depth use of internal information for evaluation

Readings: AHM Chapter 26

Assignments: At the Café: AHM C26-3

Remember to put yourself into the role of the decision-maker.

Take home exam distributed

Thursday, June 28 8:15-10:15 p.m. (Stan Cort)

Getting paid for the value you deliver

Topics: Customer v. shareholder value

The value-based pricing dodge

e-Commerce in real life: A nightmare on e-street?

Readings: Pricing Decisions

Taxonomy of Buying Decision Approaches

Case: Biopure Corporation

Monday, July 2 6:00-10:15 p.m. (Matthew Sobel)

Operations Process Analysis

Readings: Process Fundamentals

Mcdonald Corporation

Burger King Corporation

Kristen’s Cookie Company (A)

Assignment: Carefully read the material above and prepare to discuss the following questions:

1. What are the major operational differences between McDonald and Burger King,

and how do those differences relate to each company’s method of competing in

the marketplace?

2. Key questions 1, 2, 3, and 4 in Kristen’s Cookie Company (A).

Distributed: Guidelines for the executive summary of National Cranberry Cooperative (A)

Thursday, July 5 6:00-8:00 p.m. (Ron Fountain)

The role of finance and financial analysis in creating value.

Readings: Finance- Introduction Chapters 1, 2, & 16

Thursday, July 5 8:15-10:15 p.m. (Matthew Sobel)

Production System Analysis

Readings: National Cranberry Cooperative (A)

Assignment: Executive summary of National Cranberry Cooperative (A)

Distributed: A Note on the Management of Inventories

Monday, July 9 6:00-8:00 p.m. (Matthew Sobel)

Inventory Management Waiting Line Models

Readings: A Note on the Management of Queues

Distributed: ACME Widgets; guidelines for the executive summary of NYPD Patrol System

Monday, July 9 8:15-10:15 p.m. (Ronald Fountain)

The time value of money and its role in value creation

Readings: Finance – Chapters 3, 4 & 10

Thursday, July 12 6:00-8:00 p.m. (Ron Fountain)

The costs and other considerations of capital structure

Readings: Finance – 9,11,13,14, & 15

Thursday, July 12 8:15-10:15 p.m. (Matthew Sobel)

Service Capacity Management; Supply Chain Management

Readings: NYPD Patrol System

Assignment: Executive summary for NYPD Patrol System; homework on ACME Widgets

Monday, July 16 6:00-8:00 pm (Vasudevan Ramanujam)

Topics: How industry structure determines firm performance

The resourse-based view (RBV) of strategy

Case: Wal-Mart Stores, Inc.

Readings: The Value Chain and Competitive Advantage

Competing on Resources: Strategy in the 1990’s

Strategic Intent

Competing for the Future

The Core Competence of the Corporation

Monday, July 16 8:15-10:15 p.m. (Ronald Fountain)

Principles and problems of capital budgeting

Topic: Making investments pay off

Reading: Finance – Chapters 6, 7, & 8 & Capital Budgeting article

Thursday, July 19 6:00-8:00 p.m. (Vasudevan Ramanujam)

Topics: Using strategy to drive performance and performance measurement: Building a Balanced Scorecard

Case: Mobil USM&R (A1)

Readings: The Balanced Scorecard: Measures Drive Performance

Putting the Balanced Scorecard to Work

Thursday, July 19 8:15-10:15 p.m. (Ronald Fountain)

Mergers and acquisitions

Topic: How and when to do it right, not wrong

Reading: Finance - Chapter 19

Monday, July 23 6:00-8:00 p.m. (Vasudevan Ramanujam)

Topics: Organizational Context and its Influence on Strategy Implementation

The 7-S Model

Case: Andersen Consulting (Europe): Entering the Business of Business Integration

Readings: The Congruency between Organizational Structure and Strategy

Structure is not Organization

Monday, July 23 8:15-10:15 p.m. (Ronald Fountain)

A case will be assigned for analysis and discussion in class

Thursday, July 26 6:00-8:00 p.m. (Vasudevan Ramanujam)

Strategy and Value Creation

Topics: The Shareholder Value Model

The Value Chain

Case: Guidant Corporation: Shaping Culture through Systems

Readings: Selecting Strategies that Create Shareholder Value

Have We Been Measuring Success with the Wrong Ruler?

The Real Key to Creating Wealth

A Value System for Shareholders

All about EVA

In addition to these, review the readings from June 4.

Thursday, July 26 8:00-10:15 p.m. (All Faculty)

Joint course wrap up

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download