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4322-002_20Fall2007 Powered By Docstoc
					                          THE UNIVERSITY OF TEXAS AT ARLINGTON

                               MANA 4322 – Organizational Strategy
                                           Fall 2007

Section:                                   002

Instructor:                                Abdul Rasheed
                                           230 Business Building
                                           Ph: 272-3867                                e-mail: abdul@uta.edu

Office Hours:                              By appointment

Class Time and Location:                   Tuesdays and Thursdays                      Room 251
                                           9:30 – 10:50 a.m.

Required Text:                             Dess, G.G., Lumpkin, G.T., and Eisner,A.B.
                                           Strategic Management: Text and Cases.. (3rd Edition) McGraw-
                                           Hill Irwin 2007.

Additional Reading:                        Businessweek, Fortune, Wall Street Journal, etc.

Course Description

        The focus of this Organizational Strategy 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 moni-
toring 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 multi-
functional, "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.

Evaluation and Grading Procedure

       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%
Student Learning Outcomes:

After completing the course the student will be able to:

    1.   Conduct an industry analysis
    2.   Conduct an analysis of a company’s external environment
    3.   Conduct a company’s internal analysis and identify strengths and weaknesses
    4.   Identify and evaluate a company’s strategies at the business level
    5.   Identify and evaluate a company’s strategies at the corporate level
    6.   Analyze issues associated with implementation of a firm’s strategies.

This is a cell phone free class. Cell phones should be switched
off and out of your reach during class time.

You are not allowed to connect to the internet during the class.

During the class, you cannot engage in activities unrelated to
the class like reading newspapers, doing assignments for other
classes etc.
                                             MANA 4322
                                      Tentative Course Outline

Session    Date                           Topic/Assignment
  1 Aug 28                  Introduction/Administrative Matters


     2   Aug 30          Chap 1: Strategic Management: Creating Competitive Advantages
                                            - Strategic Management Process
                                            - Stakeholder Management
                                            - Vision and Mission

     3 Sep 4
                      Case: The Skeleton in the Corporate Closet (Case 4, p. 576)
                      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?
  4   Sep 6           Chap 2: Analyzing the External Environment of the Firm
                                          - General Environment
                                          - Industry Analysis
                                          - Strategic Groups

 5        Sep 11   Using Library Resources: An Overview

 6       Sep 13    Chapter 2 continued

 7       Sep 18    Chapter 2 continued


  8      Sep 20                 Case: Crown Cork & Seal in 1989 (Case 11, p. 639)
                         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?


 9       Sep 25    Chap 3: Assessing the Internal Environment of the Firm
                                              - Value Chain Analysis
          &                                   - Resource-Based View

10   Sep 27                                - Evaluating Performance

                       Case: Green Mountain Coffee Roasters (Case 5, p. 579)
                       Issues for Analysis
                        1. Analyze Green Mountain’s external environment. W hat 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?

11    Oct 2      Chap 4: Recognizing a Firm’s Intellectual Assets: Moving beyond a Firm’s
                            Tangible Resources
                                        - Human Capital
                                        - Social Capital
                                        - Technology

12 Oct 4         Chap 5: Business Level Strategy: Creating and Sustaining Competitive Advantages
                                   - Cost Leadership
                                   - Differentiation
                                   - Industry Life Cycle


13 Oct 9               Chap 6: Corporate-Level Strategy: Creating Value through Diversification
                                   - Related and Unrelated Diversification
                                   - Mergers, Acquisitions, Alliances and Internal Development
                                   - Managerial Motives

14 Oct 11                   Overflow

15 Oct 16                           MID-TERM EXAM


16 Oct 18              Case: Wal-Mart’s Strategy for the 21st Century: Sustaining Dominance
                                                                                  (Case 15, p. 676)
                       Issues for Analysis
                             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?

                                 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.

17 Oct 23          Chap 7: International Strategy: Creating Value in Global Markets
         &                             - National Competitiveness
18 Oct 25                              - International Expansion
                                       - Global and Multidomestic Strategies

                         Case: Sun Life Financial: Entering China (Case 27, p. 775)
                         Issues for Analysis
                         1.     Is it a good time for Sun Life Financial to be pursuing the Chinese market?
                         2.     If you were Ohannesian, what city would you choose and why?

19 Oct 30             Chap 8: Digital Business Strategy: Leveraging Capabilities in a Disruptive
                                  - Internet and Five-Forces Analysis
                                  - Competitive Strategies
                                  - Sustainability

20 Nov 1                  Case: Panera Bread Company (Case 14, p. 666)

                          Issues for Analysis
                           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
                       2. How would you characterize the strategies of Panera Bread Company,
                            and evaluate its effectiveness?
                       3. Based on the answers to the above two questions, what would your
                           answer be to the case question of attainability of Panera’s goals?
                       4. What general conclusions can you draw about effective strategic

21 Nov 6                 Chap 9: Strategic Control and Corporate Governance
                                      - Traditional Approach
                                      - Behavioral Control
                                      - Strategic Control at Different Levels

22 Nov 8                 Case: JetBlue Airways (Case 1 p. 538)
                         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?

23 Nov 13          Chap10: Creating Effective Organizational Designs
                                  - Patterns of Growth
                                  - Structural Forms
                                  - Boundaryless Structures

24   Nov 15                   Overflow materials

25 Nov 20            Chap 11: Strategic Leadership: Creating a Learning Organization and an Ethical
                                  - Leadership Activities
                                  - Knowledge and Creativity
                                  - Ethics

26 Nov 27                Case: Procter & Gamble (Case 26, p. 768)
                               Issues for Analysis
                               1.    Assess Lafley’s leadership of Procter & Gamble. How does his style
                                     contrast with that of Jaeger?
                               2.    What intangible resources of P&G is Lafley focusing on?
                               3.    What steps has Lafley taken to make P&G a learning organization?
                                     How has Lafley focused on ethical issues in his decision making?
                               4.    What is Lafley hoping to achieve with his changes at P&G?? What
                                     are his chances of success with the radical changes that he intends
                                     to make? How may these changes affect the resource base upon
                                     which P&G is relying for long term success?

27 Nov 29       Chap 12: Managing Innovation and Fostering Corporate Entrepreneurship
                            - Innovation
                            - Corporate Entrepreneurship
                            - Entrepreneurial Orientation

28 Dec 4                Case: Starbucks Corporation: Competing in a Global Market (Case 3, p. 557)
                              Issues for Analysis
                               1.   Analyze Starbucks’s external and internal environment. What are
                                    the environmental factors that have impact on this industry and this
                               2.   What business level strategy does Starbucks appear to pursue?
                                    What niche do they fill in this highly competitive industry, and is it
                               3.   How can Starbucks remain successful and create value when
                                    diversifying into global markets? What are some of the differences
                                    between domestic and international strategies?
                               4.   What has worked for Starbucks so far in their international
                               5.   What are some of the lessons learned from previous “push-back”
                                    incidents that Starbucks should consider when planning how to
                                    respond if such incidents occur in Brazil?
                               6.   Should Starbucks go into Rio, and is there a systematic method
                                    that will work to respond to a push back to decide whether to stay

                                  with a site or pull out?
29 Dec 6              Chap 13: Recognizing Opportunities and Creating New Opportunities

                                 - Opportunity Recognition
                                 - Entrepreneurial Resources
                                 - Entrepreneurial Strategy

                 Overflow materials

                           FINAL     EXAM

                           Dec 8 - Tuesday


                                       Wall Street Journal Assignment

       The purpose of this assignment is to analyze critically a recent article (dated within four months from the
assignment due date) from the Wall Street 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 September 20,
2007, and the assignment is due by October 16, 2007.

       An illustrative list of issues that the WSJ article may focus on is given below.

       Internal Growth
              Market Development
              Product Development
              Joint Ventures

       External Acquisition Growth
             Horizontal Integration
             Vertical Integration
             Concentric Diversification
             Conglomerate Diversification

              Retrenchment, Operating Efficiency
              Turnaround, Product/Marketing Refocus
              Divestiture, Liquidation

       Management Development
       Labor Relations
       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 (may differ with regard to topic areas):

       1.     What is the rationale (or lack thereof) for the action/decision?
       2.     Is the action/decision consistent with the organization's overall
       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, Business Week, Wall Street Journal,
Forbes, Fortune, and Moody's Industrial Manual. 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.