CORPORATE STRATEGY (June 29 - July 29, 2020)

The Vedica Scholars Programme for Women

Dr. Baba Prasad
Fellow, The Wharton School; President & CEO of Vivékin Group, USA

COURSE DESCRIPTION
Enterprise strategy can be formulated and implemented at multiple levels. Strategies at the corporate
level are of particular interest to us in this course. Corporate strategy relates to the scope of the firm:
What businesses, geographies and vertical activities should the firm participate in, and why? How can the
horizontal and geographic expansion and diversification decisions of the firm yield corporate advantage
for value creation? This course provides an analytical decision-making framework for understanding the
opportunities and challenges associated with developing effective corporate strategies, and the special
role of different modes of growth to successfully support these strategies: contracts, strategic alliances
and mergers and acquisitions. Particularly in the global context, these issues have far reaching
implications for the economic success of the firm.
In this course, we will focus on understanding the principles underlying effective corporate strategies,
with particular attention to profitable growth from expansion, business and geographical diversification,
and vertical integration. We will also examine two of the important modes of accomplishing growth i.e.,
M&A and strategic alliances.

Grading Criteria
Grades will be based on both individual contribution (70%) and group work (30%). We will be

Group work: 30%

We will discuss 7 cases in the course. For each case, you will work in groups of 5 and respond to the
question I will have provided before. Each group will prepare a 3-5 page ppt that you will upload before
the class. During class, I will call on 2-3 groups to present their version. I will ensure fairness and equity
across the 7 cases so that no group feels left out or overburdened. The case presentations and ppts will
contribute 30% of your total grade.

Individual Work: 70% (2 Assignments + Final Exam)

Assignments: 20%
There will be two individual assignments in the course to be done by yourself (no group collaboration).
You will submit your 1-page individual response on the due date before we meet in class. Each
assignment will count toward 10% of your total grade. Thus the two assignments will contribute 20% of
your grade.

Final Exam: 50%

There will be a timed 2-hour open-book final exam at the end of the course. I will provide you a case
and questions and you will submit responses to these questions. You will work individually on this exam,
which will count toward 50% of your grade.
SESSION SCHEDULE

Session 1 June 29
Introduction to Corporate Strategy and Competitive Advantage
Evolving from Porter’s Competitive Forces to the Resource-Based View (RBV) of the firm
Readings: None.

Session 2 July 1
What is corporate strategy?
Readings:
Piskorski, “Note on Corporate Strategy” (HBS 9-705-44)
Collis, D. (1995). Corporate strategy: A conceptual framework. HBS notes
Questions for Discussion:
1. What is the difference between business strategy and corporate strategy?
2. What models from other area(s) of the business organization come into the picture here?

Session 3 July 3
The 3C model: Core Competence of the Corporation

Due before class:

Individual Assignment #1: 1-page critique of the article: What is Indian about the Indian Entrepreneur?
Focus especially on the idea of growth discussed in this article.

Readings:
C.K. Prahalad & Gary Hamel (1989), “The Core Competence of The Corporation”, Harvard Business
Review 90311
David Collis and Cynthia Montgomery (1998), “Creating Corporate Advantage”, Harvard Business
Review 98303

Session 4 July 6
The Firm’s Scale and Scope: Economies of Scope and Diversification
Readings
David Collis, “The Scope of the Corporation” (HBS 795139).
Porter, M. E. (1987). “From competitive advantage to corporate strategy,” Harvard Business Review,
65(3), 43-59.

Session 5 July 8
Diversified Expansion
CASE #1: General Electric’s Corporate Strategy
Questions: To be announced later

Session 6 July 10
The Firm’s Scale, Scope and Mode: Vertical Integration
CASE #2: The Walt Disney Company and Pixar, Inc.: To Acquire or Not to Acquire? (HBS 709462)
Questions:
1. Should Disney buy Pixar? What are its alternatives?
2. Should Pixar sell to Disney? What are its alternatives?
3. Does this deal meet the “better off” test? The “ownership” test?

Session 7 July 13
The Firm’s Scale, Scope, Mode and Value Creation
Readings
Anand, Khanna & Rivkin, “Market Failures” (HBS 700127)
Article: Wernerfelt, B. (1989). “From critical resources to corporate strategy,” Journal of
General Management, 14(3), 4-12.

Session 8 July 15
Corporate Strategy and The Mode Decision
CASE #3: Bharti Airtel in Africa (HBS 112- 096)
Questions:
1. What are the key success factors for doing business in Africa?
2. Critically examine the factors that led Bharti Airtel to acquire Zain’s operations in Africa. What are
potential sources of synergy?
3. What factors led Zain to sell? Would a strategic alliance have been feasible between Bharti Airtel and
Zain?
4. What are the key risks and challenges that Bharti Airtel faces in Africa? 5. Is this a successful
acquisition?

Session 9 July 17
Working Across Cultures
DUE BEFORE CLASS
Individual Assignment #3: Read How Corporate Cultures Differ Around the World
And write a 1-page essay on how your decision on the Airtel case would change.
CASE #4: Dolce & Gabbana: Racism, Stereotypes, or Being Funny?
Readings:
“Cultural Competence: Why it Matters and How You Can Acquire It: Multicultural Managers”

Session 10 July 20
Managing the Multi-Business Corporation
Readings
Andrew Campbell; Michael Goold; Marcus Alexander “Corporate Strategy: The Quest for Parenting
Advantage,” Harvard Business Review (95202-PDF-ENG)
Collis, D. (1991). Managing the multibusiness corporation. HBS notes.
Revisit: David Collis and Cynthia Montgomery (1998), “Creating Corporate Advantage”, Harvard
Business Review 98303

Session 11 July 22
Managing the Multi-Business Corporation
CASE #5: Apple, Inc. in 2012
Questions: To be decided

Session 12 July 24
Expansion Strategy: Internationalization
CASE #6: Jollibee Foods Corp p (A) (HBS 399007-PDF-ENG)
Questions:
1. What are the key success factors in the fast food industry? How did Jollibee succeed in the
Philippines? What lessons did they learn from their first overseas expansion?
2. How would you evaluate Tony Kitchner’s three years as head of Jollibee’s international operations?
What kind of organization did Kitchner build to implement his strategy? How effective was it?
3. As Noli Tingzon, how you do assess your situation taking over the International Division? What assets
have you inherited? What liabilities? Which issues are most important? Which are most urgent? Use the
C3 model for this assessment.
4. How would you evaluate the PNG, Hong Kong and US expansion opportunities? What would you
recommend to Noli Tingzon?

Session 13 July 27
Sustainability Strategy
CASE #7: Walmart’s Sustainability Strategy (A)
Readings:
Fox, J. (2015), From “Economic Man” to Behavioral Economics: A Short History of Modern
Decision Making. Harvard Business Review, May 2015.

Session 14 July 29
Closing remarks and summation of the course.