BU400Syllabus Spring2009

							                                            Crafting & Executing Strategy:
                                            The Capstone Experience

                                            Professor Michael Roberto
                                            Spring 2009

Michael A. Roberto                                                                  Class Schedule
Trustee Professor of Management                                        Wednesday, 8:00am-10:40am
Faculty Suite J-143                                                            Unistructure M-41
Email: mroberto@bryant.edu
Phone: 401-232-6155

Course Overview

Welcome to Crafting and Executing Strategy: The Capstone Experience. This course brings the
various disciplines you have studied all together. It demands that you integrate and apply all that
you have learned in your business education here at Bryant. Throughout the semester, we will seek
to answer a fundamental question facing all business leaders: How does a firm develop and execute
a distinctive strategy that enables it to create and sustain competitive advantage over its rivals? As
you seek the answer to this question, you will develop an in-depth understanding of how and why
some firms are able to generate superior economic returns… as well as why others stumble and fail.

As you learn to think strategically, you will become skilled at integrating the functional knowledge
and skills that you have developed through earlier courses in accounting, finance, marketing,
operations, etc. Throughout the course, we will take the perspective of top management, as they try
to set the strategic direction of the entire firm. As you examine each case study, you will learn to
identify the key threats and opportunities facing the company, generate and evaluate alternative
courses of action, and craft strategic recommendations for the senior management team. The course
will provide you with key analytical tools as part of this process, particularly with regard to how
managers should evaluate the firm’s external competitive environment as well as its internal
resources and capabilities.

The course will not consist primarily of lectures. Instead, much of our time will be devoted to very
active, applied learning in the form of weekly case study discussions. In addition, the semester will
include a case competition for which a $2000 cash prize will be awarded to the top team. As you
can see, the workload will be quite demanding, and you will be challenged a great deal. However,
the learning process will prove rewarding.

In addition to the course materials, we will examine current and recent events in business on a
regular basis. We expect you to keep informed of current events in business by reading periodicals
such as the Wall Street Journal, Fortune, Business Week, etc. In fact, we strongly encourage all
students to subscribe to the Wall Street Journal for the semester. Staying current in this manner
will help you participate in class discussions and apply what you are learning to actual events taking
place in companies and markets around the world.
Learning Objectives:

By the end of this course, you will have learned to:

      Analyze industry structure and environmental trends

      Assess a firm's resources and capabilities for their potential to generate a competitive
       advantage.

      Distinguish between business and corporate-level strategies

      Explain how firms can add value across diverse lines of business

      Evaluate how the global business environment influences a firm's strategy and performance

      Perform various forms of quantitative analysis to analyze the extent of a firm’s competitive
       advantage or disadvantage

Required Materials & Resources:

Each student should purchase two items from the Bryant bookstore:

      Customized textbook
          o Consists of selected chapters from a text by Thompson, Strickland, & Gamble
      Customized case-book
          o Consists of selected Harvard Business School case studies

Office Hours

My door is always open. I look forward to getting to know each of you over the course of the
semester. My office hours will be: Wednesday, 2:30-5:30pm; Thursday, 10:00am-12:00pm. If you
would like to speak with me, and you cannot meet during office hours, please feel free to email
(mroberto@bryant.edu) or call me (401-232-6155) to schedule an individual appointment.
Naturally, you can always reach me by email or phone if you simply have a quick question about the
course that does not require an in-person meeting. I am on email quite regularly and will respond no
more than 24 hours after receiving your message.

Over the course of the semester, I also will be scheduling several informal lunches with small
groups of students. These gatherings will not be required. I am offering these opportunities simply
as a way for us to get to know one another better, as well as to talk about issues that are beyond the
scope of the course. I will have sign-up sheets in class for these informal lunches, and if you are
interested, you can indicate your interest in attending at that time.
Week                              Topics and Reading Assignments

                      MODULE 1: Introduction & Environmental Analysis
Wk 1   Introduction

1/21   Readings:
           Chapter 1
           Guide to Case Analysis – available on Blackboard
           Learning by the Case Method – available on Blackboard

       Case:
           Sony PlayStation 3: Game Over?

Wk 2   External Analysis: Analyzing the Competitive Environment

1/28   Readings:
           Chapter 2
           “Understanding Industry Structure” – note found in case-book

       Case:
           Bally Total Fitness
Wk 3   External Analysis: Analyzing the Competitive Environment

2/4    Readings:
           Chapter 3
           “Financial Statements and Ratio Analysis” – note found in case-book

       Case:
           Apple Inc., 2008
Wk 4   Internal Analysis & Competitive Advantage

2/11   Readings:
           Chapter 4
           “What is Strategy?” - link on Blackboard
       Case:
           Southwest Airlines: Industry under Siege
                             MODULE 2: Business-Level Strategy
Wk 5   Competitive Positioning

2/18   Readings:
           Chapter 5

       Case:
           Harley Davidson: Preparing for the Next Century

       The initial round of the Target case competition will begin this week in sections.
Wk 6   Target Case Competition

2/25   The initial round of the competition will be completed in sections this week.

       The final round will take place on Wednesday, February 25th at 2:30pm. Please do
       not schedule other meetings or obligations during this time.

Wk 7   Midterm Exam

 3/4   The mid-term exam will take place this week.

       Reading:
           “Blue Ocean Strategy” – link on Blackboard

Wk 8   Spring Break

3/11   Spring Break is the week of 3/9-3/13. Have a great break!

Wk 9   Competitive Positioning in a Global Context

3/18   Readings:
           Chapter 7
           “Managing Differences: The Central Challenge of Global Strategy” – link on
             Blackboard

             Wal-Mart Stores: “Everyday Low Prices” in China
Wk 10   ETS Exam

 3/25   The ETS exam will take place on Wednesday, March 25th at 2:00pm

Wk 11   Competitive Dynamics & Rivalry

        Reading:
 4/1        “Disruptive Technologies: Catching the Wave” – link on Blackboard

        Case:
            NetFlix



                              MODULE 3: Corporate Strategy
Wk 12   Expanding the Scope of the Firm

 4/8    Reading:
            Chapter 9

        Case:
            Walt Disney: The Entertainment King (A)

Wk 13   Diversification

 4/15   Reading:
            "To Diversify or not to Diversify” – link on Blackboard

        Case:
            GE’s Growth Strategy: The Immelt Initiative


                            MODULE 4: Putting it all Together
Wk 14   Ethics & Corporate Responsibility

 4/22   Readings:
            Chapter 10
            “The Social Responsibility of Business is to Increase Profits” – link on
              Blackboard

        Case: The Enron Collapse

Wk 15   Final Exam

 4/29   The final exam will take place during our final class session on Wednesday, April
        29th. The final exam will be cumulative.
Teaching Philosophy

We believe strongly in teaching by the case method, rather than purely by lecture. The case method
of learning is based on the philosophy that management is a “skill more than it is a collection of
techniques and concepts.” The cases in this course will provide a description of a management
situation. We ask that you put yourselves in the shoes of the general manager or management team
in the case, who often will have an important decision or set of decisions to make. Sometimes,
those decisions will be discussed explicitly in the case; on other occasions, you will have to infer the
key problems, opportunities, and decisions facing the organization.

We will learn primarily in an inductive fashion in this method of learning and teaching. While we
have assigned a text and some readings, we will not begin most classes by outlining a set of theories
and principles, and then asking you to apply those ideas to the case. Instead, we will dive right in
and discuss the issues facing the firm in the case, and principles and hypotheses about how to
manage that situation effectively will emerge from the class deliberations. Naturally, the text and
readings will offer you a strong foundation as to the frameworks and models useful for analyzing the
case in a thoughtful, rigorous manner. For more on our philosophy of learning, please read these
notes: “Guide to Case Analysis” (Blackboard) and “Learning by the Case Method” (Blackboard).

Class Participation
Class participation plays an integral role in the learning process in this course. Everyone must
prepare the assigned material before class and participate in class discussion. Case study memos (1-
2 pages) will be due at the start of each week for which a case study has been assigned. In the
memos, you will NOT be asked to summarize what you have read; instead, you will be required to
analyze the case study and develop recommendations for senior management. There are 10 case
studies in the course; you must select any 9 of the 10 for which you will submit a memo (or you can
submit all 10, and then we will drop the lowest grade).
You should expect me to "cold-call" frequently during class. A substantial portion of your grade
will depend on your ability to contribute productively to our collective learning experience. We will
be making extensive use of real business cases that provide a forum for you to apply concepts and
analytical tools. The goals for each case discussion are to understand the strategic nature of the
situation, define key issues, recognize critical assumptions and tradeoffs, and propose sensible
recommendations. To fully benefit from case discussion, you should:
      Come to class well prepared. Analyze the case using the tools you have learned in class and
       read about in the text and readings, and come prepared to answer the case assignment
       questions in class. (The case assignment questions will be posted on Blackboard several days
       prior to class).
      If tables and figures are provided, perform basic analysis to uncover trends and issues that
       may not be explicitly mentioned in the case. Probe beyond what is written to what you think
       may really be going on, using the course lectures and readings as a guide.
      Given the complexities of the real world, there is no right answer, although some answers
       are better than others. To find those, use strategic concepts and tools to analyze a situation.
On any given day, you may be called upon to state your major conclusions and then to provide
evidence and analysis in support. Even in the most ambiguous situations, it is important to examine
data, reasons, and assumptions that make some answers better than others. For class discussion you
will be expected to draw from all the relevant readings and class discussions to date. In addition,
please remember to listen carefully and respectfully to your classmates and suggest supporting or
alternative views. Thoughtful debate is highly encouraged.


Attendance Policy
We will be very demanding with regard to class attendance and on-time arrival in this course,
because our collective learning is maximized with full participation and commitment on the part of
everyone. Please remember that late arrivals are very disruptive to your fellow students and to the
learning process. Your grade will be adversely affected in a very serious way if I discover a
problem with regard to tardiness or absences. Multiple late arrivals and/or absences put you at risk
of failing the course. Moreover, late arrival greatly enhances the likelihood that you will be “cold-
called” during the class session.
When absences must occur, please notify me by email in advance whenever possible. If you must
be absent for any reason, you also must submit a memo (two pages, double-spaced, 12 point font, 1
inch margins all around) detailing your analysis of a recent article from the Wall Street Journal.
(This is in addition to your normal weekly case memo). That analysis should include an examination
of how the concepts from the course apply to the situation described in the article. Those memos
are due no later than 24 hours after the class session which you have missed. Please note that while
submitting written memos will help offset any detrimental impact on your grade due to absence, it
should not be considered a substitute for participation in the class. Vigorous participation in a class
discussion will always earn you more credit than a memo submitted in lieu of attendance.


Academic Integrity
In order to maintain a vigorous learning community in the classroom, it is critical that we, as a class,
do not tolerate academic fraud (cheating, plagiarism, lying). As a matter of personal and
professional respect for each other, and ourselves, we should expect the highest standards of conduct
from our peers and ourselves. Violating these standards takes away the value and meaning of the
educational environment for all of us, and in the event that such a violation occurs, the individual(s)
responsible will be subject to faculty and University sanctions that may include failure from the
course, suspension, or expulsion. Please keep in mind that using notes, past exams, and other
materials handed down to you by former BUS400 students violates the standards of academic
integrity for this course. Students will be subject to serious sanctions if they employ these types of
materials during the completion of their coursework. Moreover, if a student copies the work of
another student, or if you do not properly cite published works, you are subject to serious sanctions
including failure from the course, suspension, or expulsion. Please note that all case study memos
must be submitted via the Turnitin function on Blackboard as a way for us to examine written work
for possible plagiarism.

Target Case Competition
In the opening days of the semester, Target Corp. will provide us with a crucial challenge currently
facing their business. All students enrolled in the course will compete in teams to come up with a
strategy for addressing this issue. We will distribute more information regarding the Target
assignment during the second week of class. Student teams will then take on the role of strategy
consultants for Target. During the first several weeks of the course, teams will be expected to
conduct research in the library and via the internet, visit Target stores, speak with Target managers,
interview customers, and study competitors’ strategies. Target has promised to make managers
available, both on campus and in the stores, to answer your questions. We will distribute a protocol
regarding how to conduct store visits without disrupting the Target employees. The competition
itself begins in each section from Wednesday, February 18th through Wednesday, February 25th.
At this time, each team will submit a 10 page paper and make a 12 minute presentation with their
strategy for Target. The paper and presentation should include creative ideas for helping Target
grow its business profitably, supported by quantitative and qualitative analysis. One team from each
section will advance to the final round, which will be in a central location on campus. The final
round will take place on Wednesday, February 25th at 2:30pm. Please do not schedule any
meetings or obligations during this time slot on February 25th. Target executives and Bryant
faculty will serve as judges in this competition. Target will provide a $2,000 cash award to the
winning team.

Course Grading
      Midterm Exam                                                                  20%
      Final Exam                                                                    25%
      Target Competition Paper and Presentation                                     15%
      Case Study Memos                                                              25%
      Class Participation                                                           15%

Exams (45%)
There will be two tests to evaluate your mastery of the content of the course, the midterm worth
20% and the final worth 25% of your grade. If you must miss the midterm exam, you should
contact me at least one week in advance to make arrangements to take it early. If you miss the
midterm exam unexpectedly, you should contact me immediately to discuss your options for making
up the work. The midterm exam will take place on March 4th. Please note that the final exam will
be cumulative (i.e. it covers the entire course). The exam is scheduled for our final class session on
Wednesday, April 29th.

Target Paper & Presentation (15%)
For the Target case competition, you will work with your team to write an in-depth analysis paper
(maximum 10 pages of text double-spaced, 12 point font, 1 inch margins – you may add as many
exhibits as you like after the text). In addition, your team will be asked to make a brief presentation
(12 minutes) of your analysis and recommendations to the class.            The papers will be due on
Wednesday, February 25th. The presentations will take place in class on Wednesday, February
25th. For those who advance to the campus-wide finals of the competition, that will take place on
Wednesday afternoon, February 25th at 2:30pm.

Case Study Memos and Class Participation (40%)
For any 9 of the 10 cases in this course (your choice as to the case for which you do not write a
memo – or you may submit all 10 and drop the lowest grade), each individual will be responsible for
submitting a 1-2 page memo at the start of the first session of the week during which that case study
has been assigned. The question(s) to be addressed in your case memo will be posted on
Blackboard one week in advance of the due date. The case study memos should all be submitted
via Turnitin.com so as to insure that they meet critical standards of academic integrity. Class
participation points are based on both the quantity and quality of your participation (as well as on
attendance). To contribute effectively, you may ask good questions, present some analysis, serve as
a devil’s advocate, etc. Your participation also will be evaluated based on the quality of the
questions you ask and the constructive feedback you offer when other teams make presentations
(e.g. Target case presentations).

ETS Bonus Points
On Wednesday, March 25th at 2:00pm, you will take a two-hour SAT-like exam covering questions
from the various business disciplines that you have studied. This test is required of all graduating
business students at Bryant, and it is a critical assessment tool used by the faculty and
administration, as well as outside accreditation bodies. Bryant will be administering this test in
conjunction with this course, and we ask that you take this exam very seriously. For those who
score in the top 20% nationally (raw score of 165 or above), you will automatically receive a ½
letter grade increase in your final grade for this course (B+ to A-, or B- to B). For those who score
in the bottom 10% nationally (raw score of 139 or below), you will automatically receive a ½ letter
grade decrease in your grade for this course (A- become a B+, or B+ becomes a B).

Calendar of Due Dates

Date                                 Assignment Due
Wednesday, January 21st              Sony Playstation 3 Case Memo
Wednesday, January 28th              Bally Total Fitness Case Memo
Wednesday, February 4th              Apple Inc. Case Memo
Wednesday, February 11th             Southwest Airlines Case Memo
Wednesday, February 18th             Harley-Davidson Case Memo
Wednesday, February 25th             Target Paper and Presentations
Wednesday, March 4th                 Midterm Exam
Wednesday, March 18th                Wal-Mart Case Memo
Wednesday, March 25th                Educational Testing Service (ETS) Exam
Wednesday, April 1st                 NetFlix Memo
Wednesday, April 8th                 Disney Memo
Wednesday, April 15th                General Electric Case Memo
Wednesday, April 22nd                Enron Case Memo