STRATEGIC ANALYSIS AND ACTION



MANA 6383

STRATEGIC MANAGEMENT

SPRING 2004

Instructor: Dusya Vera, Ph.D.

Office: 310E Melcher Hall

Office Hours: 4:00-5:30 pm Wednesday and Thursday, or by appointment

Phone Number: (713) 743-4677

Fax Number: (713) 743-4652

Email: dvera@uh.edu

Course Description

This course is about how an enterprise achieves and sustains a high level of success and the role the general manager plays in this process. How success has been or will be achieved is the enterprise’s strategy. It requires both analysis and action. The cases and concepts of the course take the total enterprise as the unit of analysis and the general manager as the key actor.

Developing the general management perspective is at the core of what we do in this course. A general manager is responsible for a multi-functional group (business, division, profit center, etc.) and is accountable for the strategic performance of that unit. But what we will learn has utility not just to the person at the “top” of the enterprise. Increasingly general management responsibility is shared. All members of the management team and the organization need to appreciate how their actions contribute to the overall success of the enterprise.

Instead of focusing on a particular functional area (e.g. finance, operations, marketing, accounting, etc.), this course provides you with a process for problem-solving and decision-making that requires you to build on, integrate, and apply the knowledge gained from those disciplines in order to develop an overall general management perspective. Because strategic issues are characterized by ambiguity, complexity and uncertainty, this course is as much about asking the right questions as it is about having the “right” answers. We will reach consensus on some issues, yet many among you will have differing interpretations on the most appropriate course of action. Such is the nature of strategy issues. Those of you with the need to reach the “right” answer may find yourself frustrated by the lack of definitive answers and multitude of reasonable courses of action. This is a reflection of the real world!

The course covers analytical tools and conceptual frameworks that aid in the development of judgment. The primary objective of the course is to develop expertise in formulating (analysis) and implementing (action) strategy. Although the course progresses from formulation to implementation, one cannot presume to fully understand strategy formulation without the realization of what it takes to implement strategic change.

Ultimately strategic choices represent a tension between what an organization needs to do given its competitive and market environment, what it can do given its resources and capabilities, and what it wants to do given the values and preferences of key stakeholders. The overarching framework that guides this course is provided below. The flow of the course is sequenced around this framework.

Course Objectives

To understand the factors which affect a firm's overall competitive position.

To develop an appreciation of the complexity of the issues facing managers with business unit responsibilities.

To learn how to formulate and implement strategies aimed at achieving and sustaining superior competitive performance over the long term.

4. To develop the analytical and persuasion skills needed to convince others of this strategy.

Assumptions and Expectations

Studying the experiences of real companies and the actions of practicing general managers develops insight into, and good judgment about complex strategy situations. We do this through the case method. To the extent possible we must place ourselves into these situations; decide what we would do in the circumstance and be prepared to explain our proposed course of action. To get the most from this course you must actively engage the learning process. This means devoting time and energy to preparation before class and then, during class, listening to others, and being willing to put forward and explain your point of view.

The study questions assigned with each case are designed to guide and stimulate your analysis and preparation. They are not “assignments” to be handed in.

The textbook and readings assigned are your responsibility. They will not usually be covered in detail during class but will be utilized as they apply to the issues at hand. ‘Lecturettes’ may be used throughout the course to supplement the case discussion.

The case discussion process works best if we are prepared to observe some basic ground rules. Most of the case studies we will be working on in this course are undisguised. We will be dealing with real people and the real company. This encourages engagement in the case situations and facilitates follow-up on developments subsequent to the case events. It also creates some potential disadvantages that I would like to ensure we minimize.

The process of analyzing, discussing and learning from cases depends in a significant way on discovery - discovering what the real opportunities and problems in the case are as it currently stands, discovering and evaluating the possible ways of dealing with them, and discovering the lessons that can be drawn for continuing use. The value of this process is diminished if we short-circuit it by jumping ahead to find out ‘what happened’ before we have done our best to understand the case. Similarly, we lose something when someone with special knowledge of the situation does not respect the necessary process of analysis.

Ground Rule #1. Do not call the company, go on the net, talk to students in other sections, or otherwise attempt to find out ‘what happened’ in the case situation. Naturally, it is not just the subsequent events that matter but your thoughts and comments on their implications for our analysis and learning.

Ground Rule #2. If you already know something about the industry, the company, or even the case events, use this knowledge carefully with your colleagues (and for that matter, test it carefully before you use it yourself!). If you do have special knowledge please let me know and I will call on you to help us out in class at an appropriate time.

Ground Rule #3. During class your attention should be focused on the discussion taking place in the classroom. I will provide you with copies of the overheads used in class. You are encouraged to take a few minutes at the end of class, or at the end of the day and reflect upon what you learned from the class.

To assist in class participation and knowing your names, name cards will be used for each student. Except for emergency situations, please turn off all pagers and cellular phones.

You are reminded that plagiarism (representing another person’s ideas, writings, etc., as ones own) is a serious academic offence; the penalty can be as severe as expulsion. Whenever you take an idea or a passage from another author, you must acknowledge your debt by appropriately citing your source(s). Academic dishonesty of any kind will not be tolerated.

Required Texts

• Crossan, M.M., Fry, J.N. and Killing, J.P. 2002. Strategic Analysis and Action (5th edition), Toronto: Prentice Hall.

• Case package available at the bookstore

• Additional materials will be assigned through WebCT

Note: The UH bookstore sells a MANA 6383 custom-package that includes both the book and the cases. Another option for students is to buy the book directly from or Amazon.ca, and buy the cases directly from Harvard Business School, Ivey School of Business, and the Business Enterprise Trust.

Use of the WebCT tool

WebCT is a password-protected online course management system. In this course, the instructor will use WebCT to:

1. Upload class handouts for students to download.

2. Assign additional readings.

3. Post grades. Each student will view his/her individual grades.

To get a WebCT ID and log on to WebCT please go to

The first time you log on to WebCT your password will be your birthdate (mmddyyyy). You may change your password after you log on to WebCT.

Class handouts and readings will be uploaded every Friday.

Tentative Course Evaluation

Class Contribution 30 points

Group Midterm Exam 30 points

Final Exam 40 points

Total 100 points

POINTS: GRADE: POINTS: GRADE: POINTS: GRADE:

93-100 A 83-86 B 73-76 C

90-92 A- 80-82 B- 70-72 C-

87-89 B+ 77-79 C+ 60-69 D

below 60 F

Class Contribution: It is expected that you will be present and prepared for every class, and willing to share your views in the classroom discussion, both voluntarily and when called upon to do so. You have an obligation to learn the material and to assist in the learning of your classmates. To do so, you must make a meaningful contribution when you have the floor. Summarizing case facts, repeating points already made, or simply agreeing with your classmates’ arguments does not constitute a meaningful contribution. Your goal should be to provide insights that pass the "so-what" test. This can range from helping to sort out the key facts in a complex case and to develop an analysis that builds on prior comments, thereby moving the class discussion forward.

Every student is important to the class discussion. It is equally important that we listen to one another and attempt to build upon or constructively critique prior comments. Try to resist the temptation to jump to topics that are not specifically open for discussion. Some of the things that will have an impact on effective participation and on which you will be evaluated include:

• Are you a good listener?

• Are your contributions relevant to the discussion? Do your comments relate to the comments of others and to the themes that the class is exploring together?

• Do your comments add to our understanding of the situation? Are you incisive? Do you cut to the core of the problem?

• Are you willing to challenge the ideas that are being expressed?

• Are you willing to test new ideas or are all your comments “save”? (For example, do you repeat case facts without analysis or conclusions or repeat comments already made by someone else?)

• Do you integrate material from past classes or case discussions where appropriate? Do your comments reflect cumulative learning over the course and the entire curriculum or do you merely consider each case in isolation?

The individual cases vary in their analytic difficulty, ranging from evaluating decisions already made (simple) to recommending a decision for a specific issue (more difficult) to defining the issue(s) to be addressed and then recommending a specific choice (most difficult). For these latter two types of cases, you will often find that your understanding of the issues is improved if you put yourself into the position of the protagonist in the case. Cases also vary in their conceptual difficulty, ranging from a single framework that is easily understood (easy) to multiple frameworks or one challenging framework (more difficult) to multiple and challenging frameworks (most difficult). Understanding the cases along these dimensions will help you to prepare more effectively and to allocate your time appropriately.

Preparation for the case discussion should begin with a quick reading of the assigned text chapters and the case material. Then, it is worthwhile to review the assignment questions for clues as to what issues require special attention. The next step is to reread the case carefully, taking notes that sort information, facts, and observations under a number of relevant headings. Most cases require that you perform some quantitative analyses. Finally, preparation will include notes that can be used to guide your contribution to class discussions. Please ensure that you have used in your analysis the frameworks, tools, and ideas from the readings and the previous class discussions as appropriate. Doing the reading(s) first is advised. Also ensure that you have exploited the material in the case exhibits as much as possible. Many cases will have a question or two for which you have to make a specific decision recommendation. Your recommendation should be realistic, actionable, and supported by analysis (including numerical where appropriate). You should understand the decision criteria, formulate and evaluate (quantitative and qualitative assessments) alternatives, and select a choice. You should also understand the assumptions that underlie your recommendation. Finally, your recommendation should consider implementation: who should carry out your suggestions, when they should do it, and how.

During class, you should be prepared to lead off the discussion of any question in a significant way as well as to discuss salient issues which are not addressed per se in the assigned questions. As in any case discussion, it is crucial that you are well-prepared, listen carefully to others, and build on/critique previous comments. Clearly, you must participate in class if you are going to share your ideas with others. Occasionally, students find that it is easier to participate effectively from the point of view of a particular person or functional area, or to take on the role of devil’s advocate or expert (if expertise is possessed) on the topic. It may be impossible for all students to participate in each class. It is the quality of comments, not the quantity, that is germane. In grading class contributions, I will be assessing the extent to which you have established a meaningful presence in the classroom, over the course of the semester, by making solid contributions on a regular basis. Feedback about class contribution will be offered to students during office hours.

Since so much of the learning from a case-based course occurs in the classroom, class attendance and participation is critical. You should understand that frequent absence will seriously damage your class contribution grade. The reasoning behind this apparently very stringent policy is that case classes demand active participation and attendance. If you must miss a class it is your responsibility to arrange with your classmates for briefings, announcements, etc.

Below are examples of how your class contributions will be calibrated:

Outstanding contributor: Contributions in class reflect exceptional preparation. Ideas offered are always substantive, yield one or more major insights, and provide direction to the class. Arguments are well-substantiated and persuasively presented. If this person were not a class member, the quality of discussion would diminish significantly.

Good Contributor: Contributions reflect thorough preparation. Ideas are usually substantive, provide good insights into the topic under discussion, and sometimes provide direction for the class. Arguments reflect clear thinking. If this person were not a member of the class, the quality of discussion would be diminished.

Adequate Contributor: Contributions in class reflect satisfactory preparation. Ideas are sometimes substantive, provide generally useful insights, but seldom offer a major new direction for the discussion. Arguments are sometimes presented, and are fairly well-substantiated and sometimes compelling. If this person were not a member of the class, the quality of discussion would be somewhat diminished.

Non-participant: The person has said little or nothing in this class to date. Therefore, there is not an adequate basis for evaluation. If this person were not a member of the class, the quality of discussion would not be changed.

Unsatisfactory Contributor: Contributions in class reflect inadequate preparation. Ideas offered are seldom substantive, are often off-point, provide few (if any) insights, and give no constructive direction to the class. Clear argument on the topic at hand and/or integrative comments are absent.

Occasionally, some students find it difficult to participate effectively in class because of language or other challenges. Please speak with the instructor if class participation is a significant concern for you.

Group Midterm Exam (Take-home Case): I will assign a case as a take-home exam. The class will be divided into groups of 5 students for the group midterm exam. You will have 2 weeks to form your own groups and to give me lists of the requested members - after that time, I will form the groups.

Your group will have 1 week to analyze the case and submit one response per group. Your response must respect the following guidelines: maximum 5 pages (excluding exhibits etc.), times new roman 12-point font, double line spacing, and 1-inch margins.

To analyze the case, the following structure will help push your thinking:

A. Use the Diamond-E framework to identify all of the pertinent problems/issues that management needs to address.

B. Perform whatever analysis and evaluation is appropriate.

C. Propose an action plan and set of recommendations addressing the issues you identified.

Please note that your written report does not have to follow this format. The expectation of the written report is that it will be a memo to the key decision-maker in the case.

Final Exam (Take-home Case): There will be a take-home final examination. It will be similar to the midterm exam, in that it will also be a case. It will be different from the midterm exam in that it will be an individual exercise.

Deadlines and Length Limits

If for extreme circumstances you are going to be late in submitting an assignment, you are expected to contact me. Lateness will result in a penalty in the grade for the project. The penalties are as follows:

Minor delay ( ................
................

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