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MHR 410

Seminar in Strategic Management


Fall Quarter 2010

Class meets on Mondays and Wednesdays from 2:00 to 3:50 p.m. in room 98C 4-027

Instructor: Dr. O. Sawyerr Eke


Email: oosawyerr@csupomona.edu
Phone: 909.869.2427
Office: Building 94, Room 266
Office Hours: Mondays and Wednesdays from 10:00 to 11:00 a.m., Tuesdays from 1:00
to 4:00 p.m., or by appointment
Fax number: 909.869.4353

Required Texts/Materials:

• Hitt, Michael A., Ireland, R. Duane, and Hoskisson, Robert E. (2009). Strategic
Management: Competitiveness and Globalization, Concepts and Cases 8th Edition.
Mason, OH: South-Western Cengage Learning. ISBN 0-324-65559-2
o Obtain needed chapters from www.ichapters.com using the above ISBN or title or
author names.
o You will need chapters 1, 2, 3, 4, 6, 7, and 9 plus case 8 Dell
o You can purchase the chapters plus the case all at once or as you need them. We
will use ALL seven chapters and the case.
• Thompson, Arthur A. Jr., Stappenbeck, Gregory J., and Reidenbach, Mark A. (2010).
Gobal Business Strategy Simulation Game (GLO-BUS): Developing Winning
Competitive Strategies. Burr Ridge, IL: McGraw-Hill Irwin, Inc. (Pay and register online
at www.glo-bus.com.)
• Access to the Wall Street Journal.
• Cal Poly Internet Account for Blackboard access
• One three-ring binder for industry reports and one notebook for journal entries per team

Prerequisites:

ALL College of Business Administration Core Courses

Course Description:

Strategic Management deals with the central question of why and how some firms
outperform others. While there is no “one best way” to run a successful firm, the field of
strategic management has provided theoretical frameworks and practical tools and
techniques of analysis to aid strategic decision makers in dealing with the complexities
associated with “successfully” running a firm.

My aim in this course is not to make you a strategic decision maker over the course of 10
weeks! Good strategists develop over long periods of time and with many years of

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experience. My goals are far less ambitious. My objective is to provide you with multiple
opportunities to learn and utilize the various tools and techniques of analysis in
formulating and implementing a successful strategy for a firm. I hope to be able to move
you further along the continuum of novice to expert in the field of strategic management.
The content portion of the course will help to shed some light on how far the field of
strategic management has come in helping us provide answers to the question of why and
how some firms outperform others. We will cover important theories and the current
thinking in the field, we will learn the tools of the trade and practice using these tools,
and we will stay in touch with the business world to see how companies utilize the
theories and tools of the field. The skills-building portion of the course, built around case
analyses and management simulation exercises, will drill you in the applications of key
concepts and analytical weaponry, help you develop your ability to do strategic thinking,
force you to exercise business judgment, and give you some experiential contact with
strategic decision-making. The overriding pedagogical objectives are to sharpen your
ability to “think strategically,” evaluate situations from a strategic perspective, and reach
sound strategic decisions.

Strategic Management is a capstone course. A major purpose of the course is to


integrate much of the knowledge gained in the core business
curriculum. Virtually, all the other business courses you have taken to date
(operations, marketing, finance, accounting, information systems, and human resources)
are narrower in scope and somewhat more specialized. None cover the whole spectrum of
managing the total enterprise as does strategic management. While each of the
functional areas in business is important, to be successful a firm cannot just emphasize a
single function – it must integrate the total enterprise in formulating and implementing
successful strategies. You will be called upon to use the learning you have gained in the
business core to successfully achieve the objectives of this course.

Learning Objectives:

1. Identify and define the important vocabulary used in the field of Strategic Management.
2. Identify the levels of strategy in an organization and describe the various strategic
alternatives available at each level.
3. Identify and describe the tools of industry and competitive analyses.
4. Identify and describe the tools of company situation analysis.
5. Know the important environmental variables and understand their impact in the strategic
management process.
6. Be more conscious about the importance of exemplary ethical principles, sound personal
and company values, and socially responsible management practices.
7. Understand the role of the executives, board of directors and organizational members in
the strategy-making process.
8. Identify and discuss the managerial tasks associated with formulating and implementing
company strategies, and the range of actions managers can take to promote competent
strategy execution.
9. Conduct an industry and competitive analysis in a variety of industries and determine the
attractiveness of the industry from a profit potential.

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10. Think strategically about a firm, conduct a company situation analysis and determine a
firm’s opportunities for gaining sustainable competitive advantage.
11. Craft the most appropriate strategy for a given company, reason carefully about strategic
options, evaluate action alternatives and make sound strategic decisions.
12. Execute the most appropriate strategy for a given company, evaluate the performance of
the strategy and take corrective actions as necessary.
13. Integrate all the elements of the strategic management process in running a firm in a
simulated industry environment.
14. Integrate knowledge gained in earlier core courses in the business curriculum, show how
the various pieces of the business puzzle fit together, and demonstrate why the different
parts of a business need to be managed in strategic harmony for a company to operate in
a winning fashion.
15. Function effectively as part of a company’s strategic management team.
16. Evaluate why and how some firms outperform others.

Learn-by-Doing Experience

The hallmark of a Cal Poly Pomona education is that you learn by doing. Below I have
identified your learn-by-doing experiences in this course.
• GLO-BUS, the strategy simulation, allows you and your teammates to wear the
shoes of strategists in the Global Digital Camera Industry so you can apply the
material you are learning in class in a dynamic organizational environment.
• Case analysis allows you to apply your learning by performing a strategy analysis
of a real company.
• In the News presentations allow you to apply what you are learning in the course
to what is happening in the real world of business.

Academic Integrity

You are expected to comply with the California State Polytechnic University, Pomona’s
Policy on Academic Integrity. Academic dishonesty includes, but is not limited to,
plagiarism, use of unauthorized study aids, paying someone else to complete your
assignments, and falsifying any university document. Any student suspected of academic
dishonesty during the quarter will be required to participate in the procedural process,
initiated at the instructor level, as outlined in the University Guidelines on Academic
Integrity. This may include, but is not limited to, the confiscation of the examination, a
failing grade for the assignment related to the instance, and a failing grade for the class.

Course Policies:

Attendance

Attendance is expected and required. The course is interactive in nature and you are
expected to actively participate in class discussions; as a result, attendance is expected for
every class session. More than two unexcused absences during the GLO-BUS lab
sessions will result in an automatic score of zero for the GLO-BUS End-of-Game Score

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component of your grade. Your team depends on you in running your firm; you need to
plan to be in attendance for all the GLO-BUS lab sessions. For your absence in a GLO-
BUS lab session to be excused you must notify me with an acceptable excuse and you
must notify your team. More than three unexcused absences in the class will result in an
automatic grade of F for the course. Attendance is required for the end-of-quarter team
presentations and each unexcused absence will cost you 20% of your participation grade.

Students who will be absent at some point during the quarter owing to religious
observance, jury duty, or any official university-sponsored activity must provide a written
notice of that fact to me during the first week of class. Failure to do so will result in that
absence not being counted as an excused absence.

Make-up

There will be no make-up on cases, quizzes or any class assignment. Assignments are
due as indicated on the schedule of activities. You will receive a grade of zero for every
class assignment that you do not submit.

Turning in Assignments

All assignments must be turned in personally to me in class unless I indicate otherwise.


Do not send your assignments to me via electronic mail unless I have previously agreed
to receive your assignment in this format.

Electronic Media

You may use electronic media during the GLO-BUS lab sessions and during in-class
small group discussions; however, you are not permitted to utilize any electronic media
during lectures/discussions. You need to turn off your cell phone, pager and PDA before
entering the class. You will incur a penalty of 10 points out of your total number of points
for the course each time your cell phone, pager, or PDA goes off in class, you leave class
to respond to a cell phone, pager or PDA, or you utilize your cell phone, pager or PDA in
class.

Withdrawal

The university policy on dropping and withdrawing from classes is set forth in the
schedule of classes. You are obligated to officially withdraw from your courses even
though you may have not attended. It is your responsibility to drop a course you do
not plan to attend or withdraw from having once been enrolled in it.

Course Requirements:

Quizzes

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You are expected to read the chapters before we cover the material in class. The readings
serve as the foundation for all the learning objectives, and specifically for objectives 1
through 8 and 16. The purpose of the quizzes is to ensure that you have read the material.
You will take a quiz on each of the seven chapters as indicated on the schedule of
activities. The quizzes are available online in Blackboard for the period indicated on the
schedule. For example, quiz chapter 1 is available from Monday, September 27, 2010 at
12:00 a.m. through Sunday, October 3, 2010 at 11:55 p.m. You need to take the quiz
during this period to avoid earning a score of zero. There will be no opportunities to
makeup missed quizzes. Each quiz has twenty questions that are randomly generated
from a pool and each is limited to 45 minutes. You will have two opportunities to take the
quiz for each chapter covered during the period it is available. I will count the highest
grade of the two attempts. Each quiz is worth 10 points for a total of 50. I will drop your
two lowest quiz grades.

Case Assignment

The case assignment aims to accomplish objectives 9 and 10 and is worth 100 points. In
addition to content, you will be graded on writing mechanics. Poor writing can cost you
up to a letter grade! Be sure to edit your work before submitting it. If you need assistance
with your writing, please visit the University Writing Center (UWC). To make an
appointment you may call the UWC at 909.869.5343 or visit them at
www.csupomona.edu/~uwc. See pages 10 thru 13 for specific instructions on the case
assignment.

GLO-BUS

The GLO-BUS strategy simulation aims to accomplish objectives 11 through 15. It is a


group project. General information on GLO-BUS is on pages 14-15. GLO-BUS can be
accessed at www.glo-bus.com. The End-of-Game score determines the company score.
Your score on quizzes 1 and 2 in GLO-BUS, your overall company score and your peer
evaluation score determine your individual grade. The simulation part of GLO-BUS is
worth 50 points.

As part of GLO-BUS, you will prepare a three-year strategic plan for your firm worth a
total of 25 points. The specific instructions for the assignment can be accessed on your
firm’s corporate lobby in GLO-BUS. You will also maintain a journal of your decisions
and make a PowerPoint presentation reflecting on your experience as a business
executive in the Global Digital Camera Industry. The journal is worth 50 points and the
presentation is worth 25 points. The details of the assignments are on pages 16 -17 and
18-19 respectively. Please note that your individual score on all GLO-BUS components
will be determined by your peer evaluations.

While I will give you class time to work on your decisions for GLO-BUS, I still expect
you to work outside of class to review your annual results, understand the industry
environment, study your competitors, study your performance and determine why you
did/did not do as well as you had planned, and make an outline of your strategic moves

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for the following year. If you wait until you come to class to review your results, plan
your strategic moves and make the next set of decisions, you will not have enough time.
To be successful in GLO-BUS, you should plan to spend a couple of hours a week outside
class reviewing each decision.

Class Participation

You will receive a class participation grade of 35 points at the end of the quarter.
Attendance, while important, does not in and of itself constitute participation. You must
be prepared for every class and actively participate in the discussions in order to earn
participation points.

Twenty of the 35 points will be awarded for In the News presentations that you make in
class. You have two options. Your first option is to make oral presentations of two WSJ
articles. Present a summary of the article and discuss how it relates to a specific topic we
are covering in class. Submit a copy of the article and your summary at the beginning of
the class session in which you plan to present it. Make sure your name is on it. Your
second option is to create a no more than 2-minute video of current news on a particular
firm or industry to show to the class. You can incorporate news from multiple sources,
not just the WSJ. The video can take any format you wish, but you need to appear in it
and it should be of professional quality. In presenting the news item(s) you should ensure
that you relate the content to specific class material and that you provide proper and
adequate citations. Submit a copy of the DVD with your name on it after the presentation.

In the News presentations will begin on September 29 and end on November 1. It is your
responsibility to make your presentation within the period allotted. The first 15 to 20
minutes of each lecture class session with be devoted to the oral presentations. If you do
not make your presentation by the deadline, you will forfeit the points.

Your participation will be determined at the end of the quarter based on In the News
presentations and your attendance and participation in the case discussions, in-class group
activities, project team presentations, GLO-BUS lab sessions, etc. I will keep a record of
your attendance and participation in these activities from which I will determine your
participation points at the end of the quarter.

Grading Policies:

Definition of Grades

A - Superior Work. Indicates originality and independent work and a thorough mastery
of the subject matter/skill; achievement so outstanding that it is normally attained only by
students doing truly exemplary work.

B - Very Good Work. Indicates clearly better than adequate competence in the subject
matter/skill; achievement of quality higher than adequate, but not of exemplary quality.

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C - Adequate Work. Indicates that classroom work, outside assignments, and
examinations have been completed at a level indicating adequate competence in the
subject matter/skill.

D - Minimally Acceptable Work. Indicates achievement which meets the minimum


requirements of the course, but at a level indicating less than adequate competence in the
subject matter/skill.

F - Unacceptable Work. Indicates achievement that fails to meet the minimum


requirements of the course and is clearly below university quality; not a passing grade

(Excerpted from p. 86 of the 2009 Online Catalog, California State Polytechnic


University, Pomona)

Grades:

Assignments Point Value Percentage


Chapter Quizzes 50 15
Case Assignment 100 30
GLO-BUS 150 45
 Three-year Strategic Plan  25 (7.5%)

 End-of-game Score  50 (15%)

 Journal Report  50 (15%)

 Presentation  25 (7.5%)

Class participation 35 10
 In the News  20 (6%)
 Attendance  15 (4%)
TOTAL 335 100

Grading Scale
A 311-335
A- 301.5-310
B+ 295-301
B 278-294
B- 268-277
C+ 261.5-267
C 244.5-261
C- 234.5-244
D+ 227.5-234
D 211-227
D- 201-210
F 200 and below

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Schedule of Activities*

Date Topic Readings

September 27 Introduction to the course Syllabus


Strategic Management and Strategic Competitiveness Chapter 1
Quiz Chapter 1 (9/27 – 10/3)

September 29 Strategic Management and Strategic Competitiveness Chapter 1


The External Environment: Opportunities, Threats… Chapter 2

October 4 The External Environment: Opportunities, Threats… Chapter 2


Quiz Chapter 2 (10/4 -- 10/10)

October 6 The Internal Organization: Resources, Capabilities, Core…. Chapter 3


Quiz Chapter 3 (10/11 – 10/17)

October 11 The Internal Organization: Resources, Capabilities, Core…. Chapter 3

October 13 GLO-BUS Orientation/Registration Players’

Manual

October 18 Business-Level Strategy Chapter 4


Quiz Chapter 4 (10/18 – 10/24)

October 20 Business-Level Strategy Chapter 4

GLO-BUS Practice Decision 1 will run at 4 p.m.


(Decision to be made outside class)

October 25 Corporate-Level Strategies: Diversification Chapter 6


Quiz Chapter 6 (10/25 – 10/31)

October 27 Corporate-Level Strategies: Acquisition and Restructuring Chapter 7


Quiz Chapter 7 (10/25 -- 11/7)

GLO-BUS Practice Decision 2 will run at 4 p.m.


(Decision to be made outside class)

November 1 Corporate-Level Strategies: Cooperative Strategies Chapter 9


Quiz Chapter 9 (10/25 – 11/7)

November 3 Case Assignment: Dell Case 8


Case report due, In-class discussion

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GLO-BUS Resets at 12 a.m. on Sunday, October 31, 2010

November 8 GLO-BUS Decision 1 (Year 6) (all decisions run at 4 p.m.)

November 10 GLO-BUS Decision 2 (Year 7)

November 15 GLO-BUS Decision 3 (Year 8)

November 17 GLO-BUS Decision 4 (Year 9)


Three-Year Strategic Plan due with decision 4 (Years 9 through 11)
(Note: You will need to complete Decision 4 and/or the 3-Year plan
outside class.)

November 22 GLO-BUS Decision 5 (Year 10)

November 24 GLO-BUS Decision 6 (Year 11)

November 29 GLO-BUS Decision 7 (Year 12)

December 1 Reflection presentations begin


Journal Reports due for All Teams

December 6 Reflection presentations continue


1:40 p.m. - 3:40 p.m.
(Please note time change)

*The instructor reserves the right to make changes to the schedule as deemed necessary. Any
such changes shall be communicated to the class. If you must miss a class, it is YOUR
responsibility to find out what you missed and whether any changes were made to the syllabus.

HAVE A WONDERFUL AND SAFE WINTER BREAK!!!

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CASE ASSIGNMENT

Instructions

You are to perform an analysis of Dell. Except for the financial statements, you are
expected to limit yourself to the case data. In other words, you do not need to perform
additional external research to complete your case assignment. You are, however,
required to obtain income statement and balance sheet data for Dell for the five-year
period of 2002 to 2006 from its corporate website.

Your case should be in the outline format given below and must not exceed six single-
spaced and numbered pages inclusive of all tables, charts and diagrams (12 pt. font
with one inch margins all around). Your cover page and the list of references are not
included in the six-page limit. The cover page should include your name, course and
section number. Your name should not appear anywhere else on the paper.
DOES NOT WANT AN ESSAY

Case Outline

I. Industry Boundary Identify the specific industry you are analyzing what industry
u are analyzing. Define it and its boundaries. Is it a ……Global? National?
Pomona industry?
II. External environment Analysis
A. Identify and briefly describe three segments of the general environment and
each of their impact on the industry
1. Ex. technological_____________
2. Ex. demographical_______________
3. _________
B. Evaluate the five forces of competition for the industry NAME OF THE
INDUSTRY. NAME OF THE SEGMENT, IMPACT AND… 3
(info in the pwpts)
1. Threat of entry of new competitors is (high, moderate, low)
______________, because____why_____. The barriers to entry
include ___________. (Note: the supporting reasons you give for your
answers in 1 through 6 should be based on the material covered in
lecture and presented in chapter 2 of your text). Reasons should b be
from lecture
2. Suppliers to the industry provide (identify the products/services
provided by suppliers) what (ex. Boeing: engines, wings)________.
They are (strong, moderate, weak)pick one __________,
because___________.
3. Those who buy the product of the industry are (identify the specific
buyers of the industry’s products/services)who ________________.
They are (strong, moderate, weak)pick one __________,
because____________.

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4. The substitute products are (identify specific substitute
products/services) ____________. They are (strong, moderate, weak)
___________, because____________.
5. Competition in the industry is____________ (strong, moderate, weak)
because___________.
6. Based on 1 to 5 above (based on above answers 1-5) not on other info,
the current profitability potential of the industry is ________ (strong,
moderate, weak) because __________.
C. Draw a strategic group map of the industry (can be hand drawn and labeled)
label the axis (within 6 pgs. Do not put on pg 7)
D. Prepare an anticipated response profile for the top two competitors [more
vague] pg. 259 fig 2.3. Wants this content, do not have to draw (not including
the subject firm) in the industry. Be sure to include the future objectives
ex.burger king’s objectives r, current strategy ex. Low cost provider,
assumptions, strengths and weaknesses, and the anticipated responses of each
of the two competitors what do I expect them to do? (pretend im DELL) (see
Figure 2.3).
E. Based on your analyses in A-D above, is the industry attractive? What are its
prospects for above-average profitability? Support your answer. A concluding
section. Ex. Based on a-e above is the industry attractive? EXPECTS 2
ANSWERS
I. Internal organization analysis can now start talking about DELL
A. Perform a (IDENTIFY THE CORE COMPETENCIES) core competence
analysis of the firm (see Table 3.5). USE THAT TABLE- DO NOT USE
SUPER SMALL FONT Note that you will need an extra column to indicate
the resource or capability you are evaluating. Does the firm have any core
competencies that give it a competitive advantage? Which ones?
B. Draw [DRAW A VALUE CHAIN FOR WHAT DELL DOES NOT A
GENERIX ONE]a value chain of the firm (see Figure 3.3) and describe the
primary and support activities of the firm (be as specific to the firm as
possible).
C. Identify the company’s resource strengths and weaknesses and its external
opportunities and threats (at least two of each): basically do a SWOT for
DELL
1. What are the company’s strengths and resource capabilities?
2. What are the company’s weaknesses and resource deficiencies?
3. What are the company’s market opportunities?
4. What are the company’s external threats?
5. What does a SWOT analysis reveal about the current situation of the
firm?
D. [ONLY WANTS TO SEE PARAGRAPHS ONLY AND PUT FINANCIAL
TABLES IN APPENDIX. ONLY 3 PARAGRAPHS] Obtain the firm’s
income statement and balance sheet data for 2002-2006 MUST BE ANNUAL
DATA NOT QUARTERLY!!!!!!UNDER INVESTOR RELATIONS(from its
website or from Mergent Online). (Append the original financial data to your
case to show the basis for your financial analysis; not included in the page

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limit.) Perform the analyses in Tables 1 to 3 in Appendix A posted in
Assignments on Blackboard.THESE APPENDIX ARE NOT PART OF 6 PG
Include only the narratives for the year-to-year changes in the income
statement (Table 1), the common-size income statement (Table 2) and the
ratio analysis (Table 3) in this section of your case write-up. What does the
financial analysis reveal about the firm’s financial situation vis á vis the
industry? (Append Tables 1 to 3 to your paper; not included in the page limit.)
E. Based on your analysis in A-D above, [THIS IS CONCLUSIVE] EX. A
CONCLUDING STAMENT does the firm have a competitive advantage
relative to the other firms in its industry? If yes, on which core competence
(ies) is (are) the advantage (s) based? If no, why not?
IV. Strategy Analysis
A. Identify and briefly describe the firm’s corporate-level strategy (ies) (e.g.,
vertical integration, growth, outsourcing, etc.) CH. 6,7, AND 9 EX. IS IT A
MERGER, DIVERSIED, OUTSOURCING, VERTICAL …..CAN HAVE
MORE THAN ONE
B. Identify and briefly describe the firm’s business-level strategy (ies) EX.
LOOW COST, FOCUSED LOW COST?
C. Identify and briefly describe the strategy for each functional area covered in
the case (e.g., marketing, HR, production, etc.) DESCIBE THEM, EXAMPLE
DELLS SUPPLY CHAIN, PRODUCTION ETC. IF THERE IS ZERO DATA
ABOUT HR THEN DON’T TALK ABOUT THAT!!!
V. Strategic Issuea Analysis (you need to analyze two strategic issues) the most
important part of this entire analysis!!!!!!!!!!! Those that if left unresolved
would jeopardize the company
A. Strategic Issue 1(look at five forces… are suppliers too strong?, is the industry
highky globalized and dell is not? Or these issues come fro all uve done
before.
1. State the strategic issue These issues should be stated in question
format. (make sure to use a question format). Discuss the issue
making sure to give adequate support as to why you think this is a
strategic issue. EX. HOW SHOULD DELL OVERCOME(not just
should!!!!!) ….. if answer could be yes or no… then the issue is not a
strategic issue. ANSWER HOW WHERE, WHEN
2. Generate and evaluate at least two possible strategic alternative
actions (see chapters 4, 6, 7 and 9 for alternative actions FROM
THESE CH NOT MY OWN OPINION) EX. MERGE, OUTSOURCE
ETC.
i. Identify strategic alternative 1–be sure to discuss the strengths
and weaknesses of the alternative relative to the strategic issue
you have identified
ii. Identify strategic alternative 2–be sure to discuss the strengths
and weaknesses of the alternative relative to the strategic issue
you have identified
iii. Identify strategic alternative 3, etc. for however many u
mentioned

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3. Make a recommendation by selecting the best alternative action(s)
from those above. Be sure to discuss how your selected alternative(s)
will resolve the issue.
4. Implementation Issues – what kinds of implementation issues will the
company have to address in order to put your recommendation(s) into
action (ex. obtain additional capital, hire new employees, layoff
employees, change leadership, develop a new strategy, etc.).
B. Strategic Issue 2 SAME AS ABOVE FOR SECOND ISSUE NOW
1. State the strategic issue (make sure to use a question format). Discuss
the issue making sure to give adequate support as to why you think
this is a strategic issue.
2. Generate and evaluate at least two possible strategic alternative actions
(see chapters 4 and 6 for alternative actions)
i. Identify strategic alternative 1–be sure to discuss the strengths
and weaknesses of the alternative relative to the strategic issue
you have identified
ii. Identify strategic alternative 2–be sure to discuss the strengths
and weaknesses of the alternative relative to the strategic issue
you have identified
iii. Identify strategic alternative 3, etc.
3. Make a recommendation by selecting the best alternative action(s)
from those above. Be sure to discuss how your selected alternative(s)
will resolve the issue.
4. Implementation Issues – what kinds of implementation issues will the
company have to address in order to put your recommendation(s) into
action (e.g., obtain additional capital, hire new employees, layoff
employees, change leadership, develop a new strategy, etc.).

As a reminder, poor writing will have an adverse impact on your grade. Edit your work.
If you need assistance with your writing, please visit the University Writing Center. To
make an appointment you may call the UWC at 909.869.5343 or visit them at
www.csupomona.edu/~uwc.

Note – Meaning of grading symbols is as follows: 0 missing/incorrect; √- weak/poor; √


good; √+ very good; √++ excellent
a
The strategic issues you identify should be those issues that if left unresolved will
jeopardize the future viability of the firm. NEED TO CONVINCE AND DEFEND IT
They derive from your analysis in the above sections. These issues should be stated in a
question format (for example, How should J&J address the increase in the costs of raw
material inputs?). If you can answer the strategic issue question with a yes or no, then the
issue is not strategic in nature. You should identify these issues and discuss why they are
so important. Remember that you and another analyst might have a different list of
strategic issues. It is your job to argue effectively as to why the issues you have identified
are truly strategic. Follow this with a discussion of the strategic alternatives that are
available to the firm for addressing each issue. In generating alternatives, you should

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draw from the strategic alternatives we have covered in class and those in chapters 4, 6, 7
and 9 of your text. Evaluate each strategic alternative by discussing its advantages
and disadvantages in relation to the subject firm. Select the best alternative action(s)
and discuss how it will resolve the issue at hand. Your recommendation(s) should
be well founded and should result in improving the company’s competitive position
and its long-term financial performance

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THE GLO-BUS STRATEGY SIMULATION GAME

General Description of the Game

Introduction. Simulations are extremely powerful learning tools. They allow students
to simulate an experience that would be very difficult, if not impossible to have in the
real world. Very few companies would be willing to allow an inexperienced student to
serve as its general manager over a lengthy period of time. Yet, in order to understand
organizations holistically, experience is vital. The simulation that is being used in this
course is one of the best available in its field. By necessity, it cannot exactly mirror the
real world or it would be far too difficult to handle in this course. However, it has
enough variables to be reasonably realistic without overburdening students with too many
details. The creators have worked hard to make the simulation both fun and challenging.

Description. In this simulation, teams of students form a company and, applying


concepts they have learned in this and other business courses, assess the industry
environment, monitor the activities of their rivals (other teams from the course) and make
short and long-term strategic decisions regarding all aspects of the company’s business.
You must weave together functional strategies in production, marketing, finance, and
human resources into a compatible whole and be accountable for achieving acceptable
financial and strategic performance. Each set of decisions you make represents one year
of the company’s operations. After three years of decisions have been made (years 6-8)
you will develop a Three-Year Strategic Plan. At the end of the game, each company
will prepare a 15-minute presentation that analyzes the decisions you made and your
performance. A description of these assignments follows this general description.

Each team starts out with exactly the same global market share. How well you do
depends on you. Your company grade for this project will be based on the following
components: (1) your end-of-game standing, (2) your three-year plan, (3) your journal
report, and (4) your reflection presentation. Your EOG standing and your performance
on the 3-year plan, calculated by the computer game, will be based on the scoring system
described in the game player’s manual. Your individual grade on each of the components
of GLO-BUS will be determined by your peer evaluations.

Class time will be provided to work in your groups on the simulation. However, you
should expect to spend some time outside of class with your group, especially at the very
beginning when you are deciding on your basic approach and working on your Three-
Year Plan.

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Tips on Being Successful. If you want to be successful in the GLO-BUS simulation:

1. READ YOUR MANUAL THROUGHLY SEVERAL TIMES BEFORE YOU


BEGIN. Know it well. It will be impossible to play the game, do your Three-Year
Plan, or write your journal, if you do not know the manual well. Do not wait. If you
do, your competitors will “eat your lunch” before you know what happened to you
and it may be impossible to recover.

2. Begin your Three-Year Plan immediately. Decide who you are (mission), what
your goals and objectives will be, both at the business and functional levels of your
company, what your basic overall strategy will be (low–cost or differentiation to a
broad or focused market), and what functional-level actions you will have to take to
achieve them.

3. Push yourself to really understand where costs come from and how to squeeze
the most value from your expenditures. Do not be afraid to spend money in the
short run if it saves you money in the long run. Calculate and compare the costs and
savings of alternative investments.

4. View your projected performance results on your screen after you have made
your decisions, but before you turn them in. Are you happy with your projected
results? Are the assumptions upon which they are made reasonable? If you cannot
say, “yes” to both of these questions, figure out what you need to do to get the results
that will satisfy you. Then do it. Use the Industry reports to understand your
competition – where their competitive advantage (or disadvantage) lies and what they
are likely to do next.

5. Think proactively. Use the information about the past to “project” into the future.
However, just as you are changing your decisions, so will your competitors. Do not
assume they will wait around for you to figure them out.

6. Keep a folder with all reports for each year so that you can track trends in
performance. Assign a responsible member of your team to take care of it and bring
it to each lab session.

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JOURNAL

You will keep a journal of all your decisions for submission as indicated on the schedule of activities. The purpose
of the journal is to force you to think about your decisions. GLO-BUS is not a “game” in the sense of just plugging
in numbers. If you feel that you are just plugging in numbers, then you are not making your decisions properly.

Journal Entry 1: Your first journal entry should state your competitive strategy, the competitive advantage you are
seeking and why this is the best strategy for the Global Digital Camera Industry. Then you need to identify the
specific objectives you plan to accomplish in year 6. Your objectives need to be specific and measurable, specify a
time period for accomplishment, challenging but realistic, etc., as discussed in class. Each objective needs to be
followed by the specific decisions you will make to achieve it. Your entry should be sketched out before you begin
making your year 6 decisions. Once you have completed your decisions, you can make any adjustments to the entry
that you believe are necessary. This is a group effort and every member must participate.

Journal Entries 2+: Your subsequent journal entries should begin with a review of each objective from the prior
year and whether or not you were able to accomplish it. If yes, indicate the factors you think were responsible for
your ability to accomplish the objective. If no, indicate why you think you did not accomplish the objective.
Following this, you should anticipate the future and set the stage for your next set of decisions by indicating in a
general way what you think you need to do during the year in order to accomplish your strategic objectives. Then
you need to identify the specific objectives you plan to accomplish for that year. Your objectives need to be specific
and measurable, specify a time period for accomplishment, challenging but realistic, etc., as discussed in class.
Each objective needs to be followed by the specific decisions you will make to achieve it. Your entry should be
sketched out before you begin making your decisions for the year. Once you have completed your decisions, you
can make any adjustments to the entry that you deem necessary. See page 17 for the format of the journal entries.

Final Journal Entry: Your final journal entry should review your objectives for the final year of the GLO-BUS,
whether or not you were able to accomplish them, and the factors you think were responsible for your ability to
accomplish, or otherwise, your objectives.

To get a good grade, you need to follow the above format and demonstrate to me that you know what you are doing
in running your firm. Your journal is your opportunity to demonstrate to me that you have a plan, you know where
you are going with the firm, and you are not just haphazardly making decisions. I need to see that your decisions are
in line with your chosen strategy, that you understand industry developments, that you are keeping an eye on what
your competitors are doing, etc.

Your journal entries should be handwritten in a notebook (not loose sheets of paper) until the final submission. Each
entry must be dated, must have the decision year, and must be signed by each member of the team. I will pick up
your journals at random a few times during the quarter to give you feedback. The final submission is due as
indicated on the schedule of activities. It needs to be typed, with a 12-point font, 1-inch margins around, page
numbers and a cover page with your company and team members’ names on it. The journal should be stapled in the
left-hand corner and submitted in an envelope with the following:
• Notebook with the handwritten journal entries, including the ones that I have reviewed
• Meeting log (see p. 21)
• Peer evaluations for journal

In addition to content, you will be graded on writing mechanics. Be sure to edit your work. Your journal is worth 50
points.

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Format of Journal Entry
(Except for the first and final entries)

Journal Entry #
Year _____
Date _____

1. Review the results of the prior year and indicate why you were able (or
not able) to accomplish your stated objectives. Make sure you address each objective from the prior
year.

2. Set the stage for the upcoming year by indicating in a very general way
what you feel you need to do to improve your results or sustain your current performance.

3. State specific objectives for the present year including the decisions you
made or will make to accomplish them. For example:

Objective 1--To increase our market share for entry-level cameras in Latin America from 15% to
35% by year 10. Include in your statement of objectives why this is an important and a necessary
objective for this year. For example: We notice that only two other firms are competing in this
market. We believe we can further strengthen our competitive position before other firms begin
competing in the market, etc.

To accomplish this we made the following decisions


• Increased marketing expenditures by 5% to create additional demand
• Increased production capacity by 12% to meet the expected additional demand
Etc.

Objective 2--To raise our PQ rating in the North American market 2 points by year 11. Include in
your statement of objectives why this is an important and a necessary objective for this year. For
example: Our PQ rating lags behind our competitors in this market. We need to make additional
investments to raise our rating in order to improve our competitive position, etc.

To accomplish this we made the following decisions:


• Increased investments in R&D by 10%
• Increased tech support by 5%
Etc.

The major decisions you make for each year should be accounted for in your journal entry for that
year. If you chose not to make a decision on a particular screen, this should also be accounted for in
your journal entry for that year. In other words, your decision entries must be as a result of a specific
objective you are attempting to accomplish, not just a decision entry for a decision entry’s sake! Your
grade on the journal report will depend on your ability to follow directions and present all the
necessary information.

4. Team member signatures

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REFLECTION PRESENTATION

Your presentation is an opportunity for you to reflect on your experience in managing a firm in the Global
Digital Camera Industry. Your team should prepare a 15-minute professional presentation. There will be a
5-minute question-answer time at the conclusion of your presentation, not included in the 15 minutes. Each
team member should have a speaking role.
Your reflection presentation should cover the following:
1. A brief review of the financial performance of your company during the time you and your
co-managers have run the company.
This review should consist of charts showing the following:
o Trends in the company’s annual total revenues
o Trends in the company’s annual earnings per share (EPS)
o Trends in the company’s annual return on equity investment (ROE)
o Trends in the company’s annual credit rating
o Trends in the company’s year-end stock price
o Trends in the company’s annual image rating
Note: When you enter the Decisions and Reports menu, there is a Performance Summary
containing bar graphs showing your company’s performance on each of the above six
performance indicators. To create charts showing your company’s trends for these six
measures, simply click on the “Copy to Clipboard” button under each of the bar graphs
for the final year of the simulation and paste the graph onto a PowerPoint slide (or you
can paste the six bar graphs into a Word file that you can print out for use in making
transparencies). If you wish to create additional performance graphs, you can do so, but
the above six bar graphs tell an adequate story about your company’s historical
performance.

2. A slide describing your strategic vision for the company.


3. A slide that shows what performance targets for EPS, ROE, credit rating, and image rating
you and your co-managers would set for each of the next two years (assuming the simulation
were to continue). You may also want to indicate a stock price target as well.
4. A slide that sets forth your company’s competitive strategy in entry-level cameras in some
detail and how that strategy has evolved over the years you have managed the company. You
may need to have more than one slide here if your company’s strategy in entry-level cameras
varies markedly from geographic region to geographic region.
5. A slide that sets forth your company’s competitive strategy in multi-featured cameras in some
detail and how that strategy has evolved over the years. Again, more than one slide may be
needed if your company’s strategy in multi-featured cameras varies markedly from one
geographic region to another, such that your company is pursuing a meaningfully different
competitive strategy in some regions versus others.
6. A slide describing your company’s production strategy (as concerns use of overtime,
outsourcing, and expansion of in-house assembly capacity) and work force compensation/
training strategy

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7. A slide describing your company’s finance strategy (as concerns dividends, use of debt
versus equity, stock issues/repurchases, actions to achieve/maintain a strong credit rating,
etc.) You should clearly describe your company’s dividend policy during the period you have
managed the company. Here, you should also set forth what sort of dividend increases, if any,
you would likely consider paying out in the next two upcoming years (given the EPS targets
you have established).
8. A slide showing (1) those companies you consider to be your strongest/closest competitors in
entry-level cameras as of the last year or two of the simulation and (2) those companies that
are your strongest/closest competitors in the multi-featured segment of the marketplace.
9. One or more slides detailing the actions you would take to out-compete these close rivals in
the next two years (assuming the simulation continues for several more years). Since the
actions may differ as between entry-level and multi-featured cameras, you may well need 2
slides here.
10. A set of slides detailing the “lessons learned” about crafting a winning strategy and about
what the managers of a company should or should not do for a company to be financially and
competitively successful in a head-to-head battle against shrewdly-managed rival companies.

The presentation evaluation form on page 24 gives you an idea of the criteria I will use for evaluating
your presentation. You are to provide the instructor with a copy of your PowerPoint slides prior to
your presentation (in handout format). Your presentation is worth 25 points.

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PEER EVALUATION

The other members of your team will evaluate you as to your contribution to the GLO-BUS,
journal and oral components of the team project. The peer evaluation for the GLO-BUS is online
and constitutes part of your individual EOG score. You will use the forms provided below to
evaluate your teammates on their contribution to the journal and reflection presentation.
Individual team members may receive project grades lesser or greater than the team score
depending on the peer evaluation. However, a team member may not receive a grade greater than
the total score possible for the assignment. For example:

Team score on the journal report is 43 (86%)

Average of peer evaluations 95%


Member score 43 (.95) = 41 (82%)

Team score on the journal report is 46 (92%)

Average of peer evaluations 110%


Member score 46 (1.10) = 50 (100%)

Each team member has a value of 100%. In making the score assignment, the
percentages assigned must add up to the total for all team members, except for
the evaluator (in other words you do not evaluate yourself). For example:

Three team members (including you) 200%

Member A: 95%
Member B: 105%
Total: 200%

Peer evaluations that are not properly completed will not be taken into consideration in
determining individual grades. Each team member should individually complete and then submit
his/her peer evaluations (for all teammates) in a single envelope with the evaluator's name and
group name on the front. The envelope should be sealed and signed across the flap on the back.
The peer evaluations should be included in the journal packet. The peer evaluations for the oral
presentation are due immediately after your group presents.

The written evaluation should reflect a team member’s contribution to the team’s performance
on the journal. The presentation evaluation should reflect contribution to the development and
delivery of the presentation. The forms are on pages 22-23. Failure to submit a peer evaluation
form will result in a 5-point penalty for the team member.

21
MEETING LOG

Each team is required to keep a log of the following for all team meetings: time, location,
duration and members present (including in-class times). Each member present must sign the log
each time the team meets. Simple notebook paper will suffice. If a team member is absent, an
indication should be made as to the reason for the absence and whether or not the team was
notified. The absent member should initial this the next time the team meets. The log should be
submitted with the journal report.

22
MHR 410
Peer Evaluation Form
For the Journal

Name of group member being evaluated ________________________

Attended Meetings Always Usually Occasionally Seldom Never

Participated actively in Always Usually Occasionally Seldom Never


team discussions

Prepared some analysis Always Usually Occasionally Seldom Never


in advance of meetings

Participated in Always Usually Occasionally Seldom Never


preparation
of journal (writing,
editing,
typing, etc.)

Completed assignments Always Usually Occasionally Seldom Never


on time

Functioned as a pro- Always Usually Occasionally Seldom Never


active group member

Contributed to the Always Usually Occasionally Seldom Never


group effort in a
significant way

Based on his/her participation in the Journal I would assign him/her ________ percent. **

I understand that the instructor will assign a project grade to this group member on the basis of my evaluation and
that of the other members of the group (see syllabus for the method of computation).

____________________________ ____________________________
Name of evaluator Signature

____________________________
Date
**
Please justify the percentage assigned in the space provided below. (This is required if you did not assign the
individual 100 %.) Thank you.

23
MHR 410
Peer Evaluation Form
For the Reflection Presentation

Name of group member being evaluated ________________________

Based on his/her participation in the reflection presentation using the same criteria as for the journal I would assign

him/her ________ percent. **

I understand that the instructor will assign a project grade to this group member on the basis of my evaluation and
that of the other members of the group (see syllabus for the method of computation).

____________________________ ____________________________
Name of evaluator Signature

____________________________
Date

** Please justify the percentage assigned in the space below. (This is required if you did not assign the individual
100 %.) Thank you.

24
Group Presentation Evaluation Form
(for instructor’s use only)

Course __________ Section ___________ Date ___________


Group Name _______________________

Start ____ End ____

Appearance 1 2 3 4 5 6 7 8 9 10

Introduction 1 2 3 4 5 6 7 8 9 10

Body of
Presentation 1 2 3 4 5 6 7 8 9 10

Team
Coordination 1 2 3 4 5 6 7 8 9 10

Use of
Visual Aid 1 2 3 4 5 6 7 8 9 10

Time
Management 1 2 3 4 5 6 7 8 9 10

Nonverbal Cues 1 2 3 4 5 6 7 8 9 10

Conclusion 1 2 3 4 5 6 7 8 9 10

Response to
Questions/
Defense 1 2 3 4 5 6 7 8 9 10

Overall
Presentation 1 2 3 4 5 6 7 8 9 10

Grade _________

Comments:

25