Lincoln Memorial University

 

 

Semester:             Fall 2005                                                                                                                                              

Course:                 BUSN-450 STRATEGIC MANAGEMENT

Time:                     Tuesday & Thursday  11:00 AM –  12:15 PM

Room:                    DBSK 314

Revised: 8/13/05

Instructor:            Donald J. McCarren, Ph.D.               Office:                    DB 320

                                                                                                Telephone:            423-869-6450

                                                                                                Fax:                         865-458-8029

                                                                                                E-Mail:                   anoulap65@aol.com

 

                                                                                                Office Hours:        T    1 - 3 PM

                                                                                                                                W  10 AM – 2 PM

                                                                                                                                TH 1 - 3 PM

 

 

Description:         This course seeks to bring together all of the business skills acquired by studying the core business courses                                                               throughout the college experience.  This is a big picture course which provides an integrated approach to corporate                                               strategic development.  The center of attention is the total enterprise – its long-term strategy based on analysis and                                          synthesis of relevant information.

 

Text:                      

 

Course Objectives:

 

                                Upon completion of this course, the students will be able to effectively research and synthesize information necessary to make long term strategic decisions.

 

                                 The critical elements of this process are:

·         Determination of your current mission, vision and strategic direction as it relates to the business that you are in.

·         Developing an appreciation for the major trends and how they might influence future growth.

·         Identifying competitive strategic shifts due to internal and/or external factors.

·         Determining vulnerability and the probability of losing competitive advantages with consequent reduction in potential market size.

·         Creating strategic alternatives that satisfy long term corporate objectives.

·         Building appropriate alternative business models which meet financial objectives.

·         To fashion meaningful times and events schedules tied to key measurable milestones to gain an appreciation for an integrated implementation plan.

·         To understand that creating an integrated strategic plan is critical for success.  It should be updated whenever significant changes occur in the marketplace but in any case, it should be treated annually.

·         To understand that there is a clear cut relationship between the Corporate Strategic plan and the first year operating plan.

 

Corporate Strategy Development Project:

 

                                The BOD has decided to hire an outside consulting group to develop a 10 year Strategic Plan for the corporation.                                        The group consists of a senior consultant with Vice President of Strategic Planning for Proctor & Gamble.  The                                            second person on the team is a senior experience in the defense and other high tech industries.  The third person is                                    a recently minted MBA from Wharton whose major strength is in the financial arena.  The fourth person after                                               receiving their MBA from Stamford has spent the last 7 years in early stage companies.

 

                                This group is supported on an as needed basis by experts in the following areas:

                                                Legal – Corporate law

                                                             Patent law

                                                Operations Management

                                                Technical – R&D

                                                M&A/Investment Banking

                                                Tax, etc………..

 

 

 

 

 

                                Each team member should decide which role they are going to fulfill.  The team will develop a clear                                                   understanding of the current business, the competition landscape, its ability to effectively compete; it’s                                                         including management skill set and its ability to manage change and transition to a new or modified business                                                model.

 

                                After developing several well defined strategies, determine which strategy best suits this corporation and why it is                                     the best approach? Is the strategy implement able and will it meet our financial objectives?                                                               

                               

                                If you err -let it be on the side of too much analysis rather than too little.  Support all of your conclusions and                                               projections with hard data, where possible.  Cite all data sources.

 

Suggested Format:

 

                                Use this format as a guide.  It is not carved in stone!!!!!!!!!!

 

                                I.  Situation Analysis – this section should focus on the corporations and be deeply researched.

 

                                II. Competitive Analysis by Business Segment.

                               

                                III.           Market Drivers – Success Factors

                               

                                IV.           SWOT Analysis – what are our core competencies?

                               

                                V.            Strategic Vision and Value Statements

                               

                                VI.           Objectives going forward

                               

                                VII.          What business (es) do we want to be in 10 years from now?  Why? How do we get there?  What are our                                                        alternatives?  Why were they eliminated?  Are we settling for a second tier strategy due to specific                                                  deficiencies or limitations?

                                               

                                                Strategy should be broken down by function and sub strategies developed.

 

                                                Financial, R&D, Operations, Legal, HR, Marketing, MIS, Business Development

 

                                                Remember, the focus is on the corporation, its evolving structure and organization and its long term                                                                strategic direction.

                               

                                VIII.        Business Model – Will the strategy chosen meet our financial objectives?  Are we going to be vulnerable to                                                 a trade?  How sustainable is our competitive advantage?  What will be required to build a most around our                                                    corporation?

                               

                                IX.           Major Market Trends

                                                - Aging Population                                                              - Increasing Speed of technology development &                                                         - Global Market                                                                       adaptation

                                                - Rising Middle Class in Asia                                            - Threat from Rogue Nuclear Powers

                                                - Commodity Squeeze                                                          - Africa heating up as next major battle ground

                                                - Oil Crisis                                                                              - Islamaphobia

                                                - Threat of Terrorism                                                           - Loss of individuality

                                                - Pressures on EU/Euro                                                       - etc, etc, etc,

                                                - Women’s Rights

                                                - Health Care Awareness                                   

 

                                                How will they change the marketplace?

 

                                                Implementation Plan:

                                                M&A/Disposition actions consistent with our strategy

                                                Time and Event scheduling – Positioning

 

                                                Expected Outcomes:

                                                What do we expect to achieve?

 

                                                Metrics:

                                                How will we measure relative success or failure?

                                                What are the relevant time frames?

 

                                The term project should be typewritten and not exceed 15 pages plus appropriate supportive attachments.  The                                            exercise should be an extensive analysis and include relevant competitive company profiles and financial data and                                      any other information which might influence the development of corporate strategy.

 

                                The oral presentation should utilize PowerPoint slides and be persuasive in nature.

 

                                Remember:

                                                ANALYSIS

                                                Conclusions

                                                Recommendations

                                               

                                                PROJECTED Corporate Profile

                                                Competitive Positioning

 

                                Each team presentation should take approximately 45 minutes.

 

Course Requirements:

 

                                Attendance Counts – If attending class is a problem for YOU – Don’t take this class.  Lack of on-time attendance                                        will count against you.  Similarly, if you leave before the class is over, YOU will be counted absent.

                               

                                Assignments – MUST be turned in on the date assigned.  YOU are responsible to get notes, handouts, assignments                                 and other course requirement from your classmates.

 

                                Class Participation - One of the goals of this course is to provoke questions, creative thought and to provide a forum                                                 for multiple points of view.

 

                                Tests – will be given at the Mid-Term and end of the semester and likely be in the form of essay style questions.                                          The goal is to give YOU an opportunity to express your ideas and understanding of the issues involved.  The Mid-                                    Term and the Final Exam will be worth a significant part of your grade.

                               

                                There will be a heavy reliance on case studies to reinforce and expand upon the course work presented. 

 

                                The Oral Presentation of the term project and the written preparation will also account for a significant part of your                                      grade.

 

Cases                

 15 %

Mid-Term

15 %

Final

15 %

Assignments

15 %

Oral Term Project  

20 %

Written Term Project

20 %

Total:

100 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grading:

                                The following grade scale will be utilized in this course.  In order to achieve a certain level on this scale, you must                                        obtain the score indicated.

 

                                                A……………………. 94-100

                                                A-…………………… 90-93

                                                B+…………………… 87-89

                                                B…………………….. 84-86

                                                B-……………………. 80-83

                                                C+…………………… 77-79

                                                C…………………….. 74-76

                                                C-……………………. 70-73

                                                D+…………………… 67-69

                                                D…………………….. 64-66

                                                D-……………………. 60-63

                                                F……………………... Below 60

 

                                NOTE: Any student with a disability requiring accommodation(s) should make an appointment with the Vice                              President for Student Affairs

                                (423-869-6393) to discuss specific needs.

 

                                NOTE: Academic Integrity (from LMU Undergraduate Catalog 2003-2004)

                                It is the aim of the faculty of Lincoln Memorial University to foster a spirit of complete honesty and high standard of                 integrity.  The attempt of any student to present as her/his own any work which he/she has not honestly performed is                                regarded by the faculty and administration as a very serious offense and renders the offender liable to severe                                               consequences and possible suspension.

 

                                Cheating: dishonesty of any kind on examinations or written assignments, unauthorized possession of examination                                    questions, the use of unauthorized notes during an examination, obtaining information during an examination from                                      another student, assisting others to cheat, altering grade records, or illegally entering an office are instances of                                            cheating.

 

                                Plagiarism: offering the work of another as one’s own without proper acknowledgement is plagiarism; therefore,                                        any student who fails to give credit for quotations or essentially identical material taken from books, magazines,                                           encyclopedias, web sources, or other reference works, or from the themes, reports, or other writing of a fellow                                             student has committed plagiarism.

 

                                Instructor Policy on Academic Integrity: Any assignment found to violate the above university policy will be                                               considered an F without the possibility of make-up opportunities.  Continued violations will result in an F for                                              the course.

 

                                The instructor reserves the right to make adjustments to this syllabus.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule:             

Week

Discussion

Assignment

1

Introduction to the course

Review of the Syllabus

Formation of Teams

Selection of Company for the Term Project

Discuss the details of the Term Project

Group Meeting

Read Chapters 1-2

Analyze an Annual Report and determine what their strategy is and if it is working.  How do you know?

2

Discuss Chapters 1-2 and answers to strategy definition in the assigned annual reports

Read Chapters 3

1. Identify the major driving forces impacting the dynamics of the external environment.

2. What can be learned from strategic group mapping?

3. How will this concept help you in your term project?

3

 

Discuss Chapter 3 and answers to questions assigned.

Lecture on competitive analysis and its role in determining an appropriate strategy.

 

 

Read Chapter 4.

Prepare the answers to the following questions relating to the Starbucks Case. 2-3 typewritten pages.

1. What is the firm’s strategy?

2. What actions should be undertaken to deal with its major strategic issues?

3. Is there a need to change their organization structure?

4. Is this an attractive industry to be in?

5. Is it vulnerable to new competition? Why?

6. What are the key issues facing Starbucks going forward?

4

Review Starbucks Case and questions assigned.

 

Provide detailed case preparation outline and discuss.

 

Group Meeting

Identify what you have learned thus far concerning corporate strategy developments – 2 pages.

5

Discuss Assignment

Prepare Azalea Seafood Case – written and for class discussion

Read Chapter 5

6

Discuss Chapter 5

 

Discussion of Azalea Seafood Case

1. What is a Value Chain and how is it relevant to the development of a corporate strategy?

2.  Why should strategies be built around well defined core competencies?

3.  What is a corporate sustainable competitive advantage?

4.  A well done SWOT analysis reveals deficiencies.

How should they be dealt with, strategically? Why?

5. Discuss Figure 5.1 and identify at least one company employing each strategy


 

 

Week

Discussion

Assignment

7

Review questions assigned.

 

Group Meeting

Read Chapter 6.

Prepare Krispy Kreme Case.  Use outline provided.

3-6 pages

8

Discuss Krispy Kreme Case and Chapter 6

Review for Mid-Term

9

MID-TERM

 

4 Essay Questions

Read Chapter 7.

Prepare written case analysis of Dell Computers 3-6 pages.

10

Discussion of Dell Case

 

Lecture Chapter 7

Why is everybody rushing to enter China? Pros and Cons 1 page.

Read Chapter 8

11

Lecture/Discussion Chapter 8

 

Group Meeting

Read Chapter 9

 

Prepare LVMH Case

12

Review and Discuss Chapter 9 and LVMH Case

Read Chapter 10.

Discuss the lack of Social Responsibility and Ethics displayed by Bernie Ebbers, Denis Kozlowsky, the Regas Family and Ken Lay

Outline your attitudes and recommendations for the future.

13

Discussion of Strategy, Ethics and Social Responsibility

 

Group Meeting

Read Chapter 11

14

ORAL PRESENTATION

 

Submission of Typed Strategic Plan

Read Chapters 12-13

15

FINAL EXAM

 

Chapters 8-13