BUSINESS STRATEGY (MGMT 421)

OVERVIEW

1. COURSE DESCRIPTION

Strategic management is concerned with how a firm sets its direction, chooses its business activities, and establishes and defends its position in a competitive market. Lectures will introduce students to concepts and tools that will help them to develop an understanding of how strategies are formed and managed, and how competitive advantage might be created and sustained. The program of lectures will include several case studies, which will illustrate the strategy development and execution process in a variety of industries both locally and worldwide, and will allow students to examine the required management processes from planning to execution, providing an opportunity to identify key success factors in strategy formulation and the building of sustainable competitive advantage. Students will be encouraged to critically reflect on issues including the concept of sustainable competitive advantage and what this means in practice and how competitive advantage can be developed and sustained.   The course emphasizes the need for long-term planning, building valuable and sustainable, and dynamic competencies and positioning to set a company apart from the competition, and appropriate strategic moves to consolidate and build on competitive advantages, such as entering new markets, building alliances, and diversification into complementary business. The inclusion of contemporary ethical issues, such as reputation and corporate social responsibility are designed to encourage students to formulate and argue their own views on all aspects of strategy. Throughout the course, students will have the opportunity to apply the abstract strategy concepts to real-life conditions, and make their own recommendations for strategies of their selected case studies and project companies. 

The course also provides a comprehensive overview of Creating Shared Value (CSV) concepts and how businesses can address social needs while benefiting both the firm and society. It covers value creation, collaboration, and assessing a business’s impact on social needs. Case studies demonstrate how addressing social needs aligns with profit objectives and opens up new opportunities. Students evaluate CSV strategies using a CSV framework developed by the  and engage in group work and online interaction.

2. REASON FOR THIS COURSE

This capstone course focuses on the strategic management process. This covers all aspects of strategy, including charting a company’s direction from its vision, mission, and business objectives, through the process of evaluation of the company’s external environment, assessing its internal strengths and competencies, and determining the general strategic options available to the company to achieve these objectives. The course covers the evaluation of the global business environment, selection of strategic alternatives, formulation, and implementation of the strategic plan, and analysis of firm performance. The course provides a strong emphasis on the implementation of the strategy, including building a competent and competitive organization, managing internal operations, developing a strong corporate or company culture, and dealing with ethical issues. 

The course aims to introduce students to the basics of how business organizations in different industries are managed and position themselves in the business environment, with a special focus on the role played by a firm’s strategy. The course aims to develop students’ analytical skills in assessing company strategies, and teamwork, as well as oral and written communication and presentation skills. Creating Shared Value (CSV) is incorporated into this strategy course to allow students to consider how social needs can be addressed whilst making a profit and creating sustainable competitive advantage. Students assess CSV as both an ethical and profitable approach, using frameworks to recognize how businesses can contribute to society as an integral part of their company strategy. By considering social needs and ethical issues, students can make informed decisions and build strategic solutions that align business opportunities with social impact.

3. STUDY HOURS

4. ROLE IN CURRICULUM

Prerequisites:
Students must have successfully completed at least one of the following subjects: Microeconomics (ECON 201) or Macroeconomics (ECON 202).

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. LEARNING OUTCOMES

On successful completion of this course students should be able to:

Knowledge Level of Learning Related   PLO
Describe Strategies that Build Competitive Advantage for a Firm (CK1): Describe how a firm builds competitive advantage by choosing its business activities, creating strategies & defending its position in a competitive market. Apply PK2
Cognitive Skills Level of Learning Related   PLO
Analyze a Strategy (CC1): Analyze a strategy using the appropriate tools and frameworks, and show how the use of these frameworks can impact on a firm’s decision making. Analyze PK2
Evaluate Strategies Which Aim to Create Shared Value (CC2): Evaluate strategies aimed at addressing social needs, & their impact on both the social needs targeted & the firm’s competitiveness & profitability. Evaluate PK2
Create a Company Strategy (CC3): Create a workable business strategy for an existing company. Create PK2
Communication, Information Technology, and Numerical Skills Level of Learning Related   PLO
None    
Interpersonal Skills and Responsibilities Level of Learning Related   PLO
None    

6. ASSESSMENT AND GRADING

Grades will be determined based on a grading score, calculated using the following assessments and score allocations:

SKILL CLO Assessment and Scoring Weighting for Course Grade
Participation Midterm  (3 * Case Study Based Tests) Assignment (Business Consulting Project)
Describe Strategies that Build Competitive Advantage for a Firm (CK1): 100%     25%
Analyze a Strategy (CC1)   100%   20%
Evaluate Strategies Which Aim to Create Shared Value (CC2)    100%   20%
Create a Company Strategy (CC3)     100%  35%
TOTAL (by Assessment Category) 25% 40% 35% 100%

7. TEACHING METHODS

The teaching methodology will aim at promoting critical thinking among the students and stimulating student participation during the classes. The student’s knowledge will be periodically reviewed by class presentations and in-class tests.Participation: CK1
Participation will assess the students’ knowledge of the strategic process, concepts and frameworks, and will comprise attendance in class and completion of the in-class teaching exercises (mainly Kahoot exercises and class exercises done individually or in groups).

Midterm Case Studies: CK2, CC1, CC2
The midterm case studies will comprise three case studies or simulations requiring students to apply the main strategy concepts, tools and frameworks to real life business world issues.

Business Consulting Project: CC3, CCIT1, CIP1
The business consulting project will be a group project (maximum five students per group) requiring the group to approach a business to create a strategy for the firm. It could be small or medium-sized businesses or a large enterprise. Teams are also welcome to work on their family business (if they have one). The output will be a report in English and presentation on the strategy developed for the firm. This assignment replaces the final exam.

Assignment Rubric:

8. STUDY PLAN

The course targets the 30 lessons in the study plan below. Each lesson is 1.5 class hours each; there are a total of 45 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class.  Implementation of this study plan may vary somewhat depending on the progress and needs of students.

   Lesson Learning Outcomes Teaching and Learning Activities, Assessment
1

What Is Strategy and Why Is It Important?

  • Understand what is meant by a company’s strategy and why it needs to differ from competitors’ strategies (CK1)
  • Grasp the concept of a sustainable competitive advantage (CK1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 01): What Is Strategy and Why Is It Important?
2

What Is Strategy and Why Is It Important?

  • Identify the five most basic strategic approaches for setting a company apart from its rivals.(CK1, CK2)
  • Understand why a company’s strategy tends to evolve.(CC1)
  • Identify what constitutes a viable business model.(CK1)
  • Identify the three tests of a winning strategy. (CK1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 01): What Is Strategy and Why Is It Important?

Case Study: Pandora, SiriusXM, and Over-the-Air Broadcast Radio: Three Contrasting Business Models

Group in-class exercise or homework on Chapter 1: What is Strategy?
3

Charting a Company’s Direction: Its Vision, Mission, Objectives, and Strategy

  • Understand why it is critical for managers to have a clear strategic vision of where the company needs to head.(CK2)
  • Explain the importance of setting both strategic and financial objectives. (CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: (Chapter 02): Charting a Company’s Direction: Its Vision, Mission, Objectives, and Strategy
4

Charting a Company’s Direction: Its Vision, Mission, Objectives, and Strategy

  • Explain why the strategic initiatives taken at various organizational levels must be tightly coordinated. (CK2)
  • Recognize what a company must do to execute its strategy proficiently. (CC1)
  • Comprehend the role and responsibility of a company’s board of directors in overseeing the strategic management process. (CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 02): Charting a Company’s Direction: Its Vision, Mission, Objectives, and Strategy

Case Study: Corporate Governance Failures at Volkswagen

Group in-class exercise or homework on Chapter 2: Charting Your Company’s Success

Ex-

Class

 Case Study (1 of 3) (CC1): Analyze how a firm sets its direction, chooses its business activities, creates strategies, defends its position in a competitive market.

Teaching Methods

Ex-class: one hour exam case study for all group simultaneously
5 Case Study (1 of 3) Review

Teaching Methods

  • Lecture (feedback)
  • Class Discussion
6

Evaluating a Company’s External Environment

  • Recognize the factors in a company’s broad macro-environment that may have strategic significance. (CC2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 03): Evaluating a Company’s External Environment
7

Evaluating a Company’s External Environment

  • Use analytic tools to diagnose the competitive conditions in a company’s industry. (CC2)
  • Map the market positions of key groups of industry rivals. (CC1)
  • Determine whether an industry’s outlook presents a company with sufficiently attractive opportunities for growth and profitability. (CK2, CC1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 03): Evaluating a Company’s External Environment

Case Study: The Differential Effects of the Coronavirus Pandemic of 2020

Group in-class exercise or homework on evaluating the External Environment
8

Evaluating a Company’s Resources, Capabilities, and Competitiveness

  • Evaluate how well a company’s strategy is working. (CK1)
  • Assess the company’s strengths and weaknesses in light of market opportunities and external threats. (CC2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 04): Evaluating a Company’s Resources, Capabilities, and Competitiveness
9

Evaluating a Company’s Resources, Capabilities, and Competitiveness

  • Explain why a company’s resources and capabilities are critical for gaining a competitive edge over rivals. (CK2)
  • Understand how value chain activities affect a company’s cost structure and customer value proposition. (CC1)
  • Explain how a comprehensive evaluation of a company’s competitive situation can assist managers in making critical decisions about their next strategic moves. (CC1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 04): Evaluating a Company’s Resources, Capabilities, and Competitiveness

Case Study: Benchmarking in the Solar Industry
10

The Five Generic Competitive Strategies

  • Understand what distinguishes each of the five generic strategies and explain why some of these strategies work better in certain kinds of competitive conditions than in others. (CK1, CK2)
  • Recognize the major avenues for achieving a competitive advantage based on lower costs. (CK1, CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 05): The Five Generic Competitive Strategies

Case Study: Vanguard’s Path to Becoming the Low-Cost Leader in Investment Management)

Case Study: Canada Goose’s Focused Differentiation Strategy
11

The Five Generic Competitive Strategies

  • Identify the major avenues to a competitive advantage-based on differentiating a company’s product or service offering from the offerings of rivals. (CC1)
  • Explain the attributes of a best-cost strategy—a hybrid of low-cost and differentiation strategies. (CK1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading(Chapter 05): The Five Generic Competitive Strategies

Case Study: Trader Joe’s Focused Best-Cost Strategy

Group in-class exercise or homework on The Five Generic Strategies
Ex-
class		 Case Study (2 of 3) (CC1): Analyze a strategy using the appropriate tools and frameworks, and show how the use of these frameworks can impact on a firm’s decision making. Ex-class: one hour exam case study for all group simultaneously
 12 Case Study (2 of 3) Review

Teaching Methods

  • Lecture (feedback)
  • Class discussion
 13

Creating Shared Value Strategies: Concepts

  1. Existing paradigm of economic growth and social progress
  2. The Creating Shared Value approach
  3. Addressing social needs whilst making a profit

Teaching Methods

  • Lecture (T)
  • Discussion (T,A)
  • Hands-on practice (A)
14

Creating Shared Value Strategies: Measurement

  • The framework for measuring shared value
  • quantifying and assessing shared value created

Teaching Methods

  • Lecture
  • Class Discussion

Group in-class exercise or homework on Shared Value Concepts and Measurement
Ex-
Class		 Case Study (3 of 3) (CC2): Evaluate a strategy aimed at addressing social needs, & the impact on both the social needs targeted & the firm’s competitiveness & profitability.  Ex-class: one hour exam case study for all group simultaneously
 15 Case Study (3 of 3) Review

Teaching Methods

  • Lecture (feedback)
  • Class Discussion
 16 Setting the Business Consulting Project

Teaching Methods

  • Lecture
  • Class Discussion
17

Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations

  • Understand whether, how, and when to deploy offensive or defensive strategic moves. (CK1, CK2)
  • Identify when being a first mover, a fast follower, or a late mover is most advantageous. (CK1, CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 06): Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations

Case Study: Etsy’s Blue Ocean Strategy in Online Retailing of Handmade Crafts
18

Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations

  • Explain the strategic benefits and risks of expanding a company’s horizontal scope through mergers and acquisitions. (CK2, CC1)
  • Explain the advantages and disadvantages of extending the company’s scope of operations via vertical integration. (CK2)
  • Recognize the conditions that favor farming out certain value chain activities to outside parties. (CK2, CC2)
  • Understand how to capture the benefits and minimize the drawbacks of strategic alliances and partnerships. (CK2, CC2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 06): Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations

Case Study: Tesla’s Vertical Integration Strategy

Group in-class exercise or case study on Chapter 6: Strengthening a Company’s Competitive Position
 19

Strategies for Competing in International Markets

  • Identify the primary reasons companies choose to compete in international markets. (CK1, CK2)
  • Understand how and why differing market conditions across countries influence a company’s strategy choices in international markets. (CK2, CC1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 07): Strategies for Competing in International Markets
 20

Strategies for Competing in International Markets

  • Identify the differences among the five primary modes of entry into foreign markets. (CK1)
  • Identify the three main strategic approaches for competing internationally. (CK1)
  • Explain how companies can use international operations to improve overall competitiveness. (CK2, CC1)
  • Identify the unique characteristics of competing in developing-country markets.(CK1, CC1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 07): Strategies for Competing in International Markets

Case Study: Walgreens Boots Alliance, Inc.: Entering Foreign Markets via Alliance Followed by Merger

Case Study: Four Seasons Hotels: Local Character, Global Service

Group in-class exercise on Strategies for Competing with international markets
21

Corporate Strategy: Diversification and the Multibusiness Company

  • Explain when and how business diversification can enhance shareholder value. (CK2)
  • Describe how related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. (CK1, CK2)
  • Identify the merits and risks of unrelated diversification strategies. (CK1, CC1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 08): Corporate Strategy: Diversification and the Multibusiness Company.

Case Study: The Kraft–Heinz Merger: Pursuing the Benefits of Cross-Business Strategic Fit.
 22

Corporate Strategy: Diversification and the Multibusiness Company

  • Use the analytic tools for evaluating a firm’s diversification strategy. (CC2)
  • Understand the four main corporate strategy options a diversified firm can employ to improve its performance. (CK1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading Chapter (08): Corporate Strategy: Diversification and the Multibusiness Company.

Case Study: Restructuring for Better Performance at Hewlett-Packard (HP).

Group in-class exercise or homework on Corporate Strategy.
 23

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

  • Understand why the standards of ethical behavior in business are no different from ethical standards in general. (CC1)
  • Recognize the conditions that give rise to unethical business strategies and behavior. (CC2)
  • Identify the costs of business ethics failures. (CC2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading: Chapter (09): Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy.
 24

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

  • Understand the concepts of corporate social responsibility and environmental sustainability and how companies balance these duties with economic responsibilities to shareholders. (CC1, CC2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading Chapter (09): Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Case Study: How PepsiCo Put Its Ethical Principles into Practice.

Group in-class exercise or homework on ethics, CSR and Environmental Sustainability.
 25

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

  • Understand what managers must do to execute strategy successfully. (CK1)
  • Understand why hiring, training, and retaining the right people constitute a key component of the strategy execution process. (CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading Chapter (10):
Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure.
26

Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure

  • Recognize that good strategy execution requires continuously building and upgrading the organization’s resources and capabilities. (CK2)
  • Identify and establish a strategy-supportive organizational structure and organize the work effort. (CK2)
  • Comprehend the pros and cons of centralized and decentralized decision-making in implementing the chosen strategy. (CK1)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading Chapter (10): Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure.

Case Study : Which Value Chain Activities Does Apple Outsource and Why?

Group in-class exercise or homework on Building an Organization.
27

Managing Internal Operations: Actions That Promote Good Strategy Execution

  • Explain why resource allocation should always be based on strategic priorities. (CK2, CC1)
  • Comprehend how well-designed policies and procedures can facilitate good strategy execution. (CK1)
  • Understand how process management tools drive continuous improvement in the performance of value chain activities. (CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading Chapter (11): Managing Internal Operations: Actions That Promote Good Strategy Execution
28

Managing Internal Operations: Actions That Promote Good Strategy Execution

  • Recognize the role of information systems and operating systems in enabling company personnel to carry out their strategic roles proficiently. (CK1)
  • Explain how and why the use of well-designed incentives can be management’s single most powerful tool for promoting adept strategy execution. (CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading Chapter (11): Managing Internal Operations: Actions That Promote Good Strategy Execution.

Case Study: Nucor Corporation: Tying Incentives Directly to Strategy Execution.

Group in-class exercise or homework on managing internal operations.
29

Corporate Culture and Leadership: Keys to Good Strategy Execution

  • Understand the key features of a company’s corporate culture and the role of a company’s core values and ethical standards in building corporate culture. (CK1, CC1)
  • Explain how and why a company’s culture can aid the drive for proficient strategy execution. (CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading(Chapter 12): Corporate Culture and Leadership: Keys to Good Strategy Execution.
 30

Corporate Culture and Leadership: Keys to Good Strategy Execution

  • Identify the kinds of actions management can take to change a problem corporate culture.(CK2)
  • Recognize what constitutes effective managerial leadership in achieving superior strategy execution. (CK1, CK2)

Teaching Methods

  • Lecture
  • Class Discussion
  • Kahoot Exercises

Reading (Chapter 12): Corporate Culture and Leadership: Keys to Good Strategy Execution.

Case Study: Driving Cultural Change at Goldman Sachs.

Group in-class exercise or homework on corporate culture and leadership.
 Ex-
class		 Business Consulting Project Presentations

Teaching Methods

  • Lecture
  • Class Discussion
 Ex-
class		 Business Consulting Project Presentations

Teaching Methods

  • Lecture
  • Class Discussion

9. TEXTBOOKS AND REFERENCES

Textbook

  1. Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2021). Crafting and executing strategy (23rd ed.). McGraw-Hill. 

References

  1. Michael E. Porter, Competitive Strategy, Free Press, New York, 1980

Education Resources