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*Latest Updates*

To facilitate your revision of course selection in Term 3, 2010-11, the course outlines of
elective courses and optional core course on offer are listed below in alphabetical order
for your reference.

Availability of Course Outlines:

Course Code Terms Course Outline


rd
ACCT5620E 3 Term Session A See below
rd
ACCT5620W 3 Term Session B See below
ACCT6111 3rd Term Not available
ACCT6160 3rd Term Not available
DSME6932W 3rd Term Session B See below
rd
FINA6010E 3 Term Session B See below
rd
FINA6065W 3 Term Session A See below
rd
FINA6172W 3 Term Session B See below
rd
FINA6222E 3 Term Session B See below
FINA6230K 3rd Term Session A See below
rd
MBAC6091K 3 Term Session A See below
rd
MGNT6310E 3 Term Session B See below
MKTG5012W 3rd Term Session A See below
rd
MKTG6011E 3 Term Session A See below
rd
MKTG6013 3 Term Not available
MKTG6015 3rd Term Not available
MKTG6016 3rd Term Not available
rd
MKTG6017E 3 Term Session B See below
rd
MKTG6019 3 Term Not available
The Chinese University of Hong Kong
School of Accountancy
ACCT 5620E Contemporary Management Accounting
Spring 2011

Kevin C. K. Lam Ph.D. CPA CMA


1016, Cheng Yu Tung Building (Phone: 2609-7894)
E-mail: kevinlam@cuhk.edu.hk

Office hours: By appointment.

Course Scope and Objectives


The aim of this course is to provide a sophisticated understanding of issues central to the use and
design of contemporary cost and management accounting systems. This course will be divided into
two main parts. Part I is cost-accounting related and introduces the key costing concepts and
techniques essential to business decision-making. Topics that will be covered include cost concepts,
cost behavior, profit planning, contribution analysis, relevant costs, costing systems and pricing
decisions. Part II is management accounting related, introducing the planning and control system
and its role in enabling and sustaining competitive advantages. Critical topics that will be covered
include responsibility accounting, profit planning, variance analysis, capital budgeting, transfer
pricing, performance measures, compensation and incentives, Balanced Scorecard and the EVAR.
This course will be taught by a combination of case and lecture methods. Active student
participation is expected.

Learning Outcomes
Upon completion of this course, students will be able to appreciate the use of accounting
information in decision analysis and control. They will also be able to perform cost analysis and
control, profit planning, budgeting, variance analysis, and responsibility accounting and
performance measurement systems design and implementation.

Course Materials
Textbooks:
Jiambalvo, James. 2010. Managerial Accounting. Fourth Edition. International Student
Version. Wiley Publishing.

Additional material:
Major cases will be distributed to you at the beginning of this semester. Handouts, including
discussion cases will be distributed when needed. Notes will be posted to the WEBCT for
printing. Do not photocopy copyrighted cases without explicit permission from the
copyright-holders. Please read the assigned cases and chapters before attending class.

Grading and Class Participation


Quizzes 30%
Final test 20%
Group assignment, presentation & discussion 30%
Individual participation 10%
Peer evaluation 10%
Total 100%

ACCT5620E Contemporary Management Accounting 1


Quizzes
There will be six unannounced in-class quizzes during this course. Students will be graded out of
their best five tests. The quizzes will be open-book and comprehensive. Each quiz is worth 5 marks.
Students who chat during a quiz will be penalized.

Final Test
A final test, in the form of multiple choice questions, will be administered at the last class. The
examination will be comprehensive, closed book, and may cover lecture notes, cases, class
presentations and discussions.

Group Assignment, Presentation and Discussion


Students, in a group of not more than six, will be required to complete two case reports. Each case
assignment is worth 10 marks. Your group will also be assigned to present one case and discuss
another. Your group’s performance in case presentation (7 marks) and discussion (3 marks) will be
graded. The due dates are indicated below. Students are reminded that the university has imposed
heavy penalty on plagiarism and the VeriGuide system will be invoked to check your submitted
work.

Individual Participation
Class participation is important for all case-oriented courses. In some renowned schools, individual
participation can account for up to 50% of the total course grade. Your participation grade will
depend on your attendance record, and more importantly, on the quality of your participation
leading to understanding and solving the issues discussed. It is essential that everyone be well
prepared before attending class. I may randomly call on individuals to present their response to
case questions.

Peer Evaluation
A peer evaluation form will be sent to students via email at the end of this course. Students will be
asked to evaluate their teammates’ contributions. The median score assigned by your teammates to
you will be your peer evaluation grade. Please be assured that the peer evaluation grade you assign
to others will be kept in strict confidentiality unless there is a written request to waive such
confidentiality by you. Your whole course grade may be severely downgraded if an overwhelming
majority of your team members complained you of free riding.

Course Outline

This course will be divided into four main parts:


1. Introduction: managerial accounting versus financial accounting, management control concepts,
accounting ethics.

2. Cost Accounting
2.1. Introduction and terminology
2.2. Cost behavior, cost-volume-profit analysis
2.3. Decision-making involving cost information: contribution and incremental analyses,
relevant costs, variable costing
2.4. Costing systems: traditional cost accounting systems such as job-order costing and process
costing; activity-based costing
2.5. Further cost and pricing decisions: pricing, target costing and customer profitability
analyses.

3. Management Accounting and Control


3.1. Planning and control systems: Budgetary planning and control; standard costing and
variance analysis
ACCT5620E Contemporary Management Accounting 2
3.2. Capital budgeting and other long-run decisions
3.3. Organizational design: responsibility accounting and transfer pricing
3.4. Incentive system and performance evaluation, balanced scorecard and EVA

4. Summary, Review and Synthesis

Tentative Course Schedule

Sess Date Subject Due Dates Reading


(chapters)
1 Mar. 15, 11 Introduction, accounting and control, J: 1
terminology, cost behavior
2 Mar. 17, 11 CVP & contribution analysis J: 4
3 Mar. 22, 11 Relevant costs, incremental analysis & J: 5, 7
variable costing
4 Mar. 24, 11 Cost accounting systems including Salem Telephone J: 2, 3
activity-based costing
5 Mar. 29, 11 Pricing and other cost-related decisions Wilkerson J: 6
6 Mar. 31, 11 Capital budgeting J: 9
7 Apr. 5, 11 No class (public holiday)
8 Apr. 7, 11 Budgetary Planning and control Colorscope J: 10, 13-14.
9 Apr. 12, 11 Organizational design & responsibility Ocean Carriers J: 10, 13-14.
accounting
10 Apr. 14, 11 Standard costs & variance analysis J: 11
11 Apr. 19, 11 Decentralization, performance Pack-iTs J: 12
evaluation & transfer pricing
12 Apr. 21, 11 Balanced Scorecard & EVA Compagnie du Froid, J: 12
S.A
13 Apr. 26, 11 Summary Domestic Auto Parts
14 Apr. 28, 11 Examination
Note 1: The class will run from 6:45 – 9:45 p.m.
Note 2: The instructor reserves the right to modify the above schedule according to class progress.
Note 3: The Harvard Business School cases will be distributed to you at the beginning of the semester. Please bring
them to the class indicated above. For best benefit, please attempt all cases even they are not assigned to
your group.
Note 4: “J: x ” refers to Chapter x from Jiambalvo.

Group Case Assignments


Your group will be required to submit two case reports on or before the due dates shown above,
presenting one of them and discussing the other. For presentation, please submit both the case
analysis report and the PowerPoint file. For discussion, a case analysis report will suffice. All case
analysis reports and PowerPoint files will be posted to the WEBCT for your fellow students’
reference. Some cases are more difficult than others. Your instructor will take this into account in
grading assignments. The questions for each case are listed below:

Case 1: Salem Telephone Company


1. “Revenue hours” represent the key activity that drives costs at Salem Data Services. Which expenses in
Exhibit 2 are variable? Which are fixed?
2. Create a contribution margin income statement for Salem Data Services. Assume that intracompany
usage is 205 hours. Assume commercial usage is at the March level.
3. Assuming i) the intracompany demand for service will average 205 hours per month, ii) the firm can
cover $82,000 of charges with Public Service Commission, what level of commercial revenue hours of
computer use would be necessary to break even each month?
4. Evaluate the following options:
a. Increase price to commercial customers to $1,000 / hour would reduce demand by 30%
(compared to March level)
ACCT5620E Contemporary Management Accounting 3
b. Reduce price to commercial customers to $600 / hour would increase demand by 30%
c. Increased promotion would increase revenue hours by up to 30%. What is the maximum amount
that can be spent on promotion?
5. Can the current report tell the company what to do?

Case 2: Wilkerson Company


1. What is the competitive situation faced by Wilkerson?
2. Are there demerits in Wilkerson’s existing costing system? Can the weaknesses be rectified with the use
of activity-based costing?
3. Identify the activity cost drivers and compute the rate. What are the ABC product costs?
4. What does the new cost information reveal? What should be the actions to be taken by the management?

Case 3: Colorscope
1. Why would any customer, let alone large advertising agencies and departmental stores, go to Colorscope
rather than go to the large printers listed in Exhibit 3?
2. Set up a two-stage cost allocation system to figure out the profitability of different jobs. First allocate the
cost of resources (e.g. wages, depreciation, rent, others) to cost pools (e.g. job preparation, scanning,
assembly, output and quality control) using appropriate diver. Then choose cost driver to allocate the
costs in various cost pools top jobs. You will have to allocate the cost pools to the cost objects (i.e. the
jobs) based on the cost driver rates computed.
3. Compile a job profitability report by allocating costs to the jobs using the cost driver rates that you
estimate in 2 above. Rank customers according to their profitability?
4. What are the rationales of allocating the overhead costs to jobs and to customers? What insights do we
obtain from such exercise?
5. What is the overall financial consequence of the rework to the firm? What should Colorscope do about
rework? How? On the one hand some rework may be necessary because of the quality positioning of the
firm. On the other hand, rework is costly. What do you recommend to solve the cost-quality tradeoff
problem?
6. Should Colorscope do anything about its incentive system? If yes, how?

Case 4: Ocean Carriers


1. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First assume
that Ocean Carriers is a U.S. firm subject to 35% taxation. Second, assume that Ocean
Carriers is located in Hong Kong, where owners is Hong Kong ships are not required to pay
any tax on profits made overseas and are also exempted from paying any tax on profit made
on cargo uplifted from Hong Kong.
2. What do you think of the company’s policy of not operating ships over 15 years old?
3. Do you expect daily spot rates to increase or decrease next year?
For simplicity, assume the following: i) Ocean Carriers uses a 9% discount rate, and ii) the
capesize could still be sold at the end of 25 years for $2.5M.

Case 5: Pack-iTs
1. Is Pack-iT's a feasible venture? Based your recommendations on objective quantitative analysis by
preparing a cash budget, a projected income statement, and a projected balance sheet under the
following two scenarios: 1) base case projection, ii) if sales were 10% less than estimated.
2. How much financing is required?
3. How risky is the venture? (Hint: one viable assessment is the margin of safety under breakeven
analysis).
4. Make whatever decisions and recommendations you think are appropriate.

Case 6: Compaignie du Froid, S.A.


1. What is your evaluation of : i) each of the three businesses? ii) the managers who run them? Based your
comments on detailed variance analyses of the competitive effectiveness and operating efficiency of the
businesses. .
2. Provide your recommendations on improving the business in the future.

ACCT5620E Contemporary Management Accounting 4


(Note: you may refer to the additional technical notes posted on the WEBCT applicable to the additional
variance techniques that can be employed)

Case 7: Domestic Auto Parts


3. Explain why strategy analysis is needed in designing and implementing a Balanced Scorecard (BSC).
Outline the steps needed to incorporate the strategy analysis in the BSC.
4. Based on the facts given in the case, what are the strategic objectives of Domestic Auto Parts (DAP)?
Classify them under the following perspectives: i) Financial, ii) Customer, iii) Internal Process and iv)
Learning and Growth.
5. Develop and draw a strategy map for DAP. Note that marks will be awarded for presentation and
diagrammatic quality.
6. Design a Balanced Scorecard for DAP. Outline, based on DAP’s situation, how the BSC can be linked
to incentive compensation. Briefly outline an action plan for implementing the BSC.
7. What are the strengths and weaknesses of the strategy formulated by DAP?

ACCT5620E Contemporary Management Accounting 5


The Chinese University of Hong Kong
School of Accountancy
ACCT 5620W Contemporary Management Accounting
Spring - Summer 2011

Kevin C. K. Lam Ph.D. CPA CMA


1016, Cheng Yu Tung Building (Phone: 2609-7894)
E-mail: kevinlam@cuhk.edu.hk

Office hours: By appointment.

Course Scope and Objectives


The aim of this course is to provide a sophisticated understanding of issues central to the use and
design of contemporary cost and management accounting systems. This course will be divided into
two main parts. Part I is cost-accounting related and introduces the key costing concepts and
techniques essential to business decision-making. Topics that will be covered include cost concepts,
cost behavior, profit planning, contribution analysis, relevant costs, costing systems and pricing
decisions. Part II is management accounting related, introducing the planning and control system
and its role in enabling and sustaining competitive advantages. Critical topics that will be covered
include responsibility accounting, profit planning, variance analysis, capital budgeting, transfer
pricing, performance measures, compensation and incentives, Balanced Scorecard and the EVAR.
This course will be taught by a combination of case and lecture methods. Active student
participation is expected.

Learning Outcomes
Upon completion of this course, students will be able to appreciate the use of accounting
information in decision analysis and control. They will also be able to perform cost analysis and
control, profit planning, budgeting, variance analysis, and responsibility accounting and
performance measurement systems design and implementation.

Course Materials
Textbooks:
Jiambalvo, James. 2010. Managerial Accounting. Fourth Edition. International Student
Version. Wiley Publishing.

Additional material:
Major cases will be distributed to you at the beginning of this semester. Handouts, including
discussion cases will be distributed when needed. Notes will be posted to the WEBCT for
printing. Do not photocopy copyrighted cases without explicit permission from the
copyright-holders. Please read the assigned cases and chapters before attending class.

Grading and Class Participation


Quizzes 30%
Final test 20%
Group assignment, presentation & discussion 30%
Individual participation 10%
Peer evaluation 10%
Total 100%

ACCT 5620W Contemporary Management Accounting 1


Quizzes
There will be six unannounced in-class quizzes during this course. Students will be graded out of
their best five tests. The quizzes will be open-book and comprehensive. Each quiz is worth 6 marks.
Students who chat during a quiz will be penalized.

Final Test
A final test, in the form of multiple choice questions, will be administered at the last class. The
examination will be comprehensive, closed book, and may cover lecture notes, cases, class
presentations and discussions.

Group Assignment, Presentation and Discussion


Students, in a group of not more than six, will be required to complete two case reports. Each case
assignment is worth 10 marks. Your group will also be assigned to present one case and discuss
another. Your group’s performance in case presentation (7 marks) and discussion (3 marks) will be
graded. The due dates are indicated below. Students are reminded that the university has imposed
heavy penalty on plagiarism and the VeriGuide system will be invoked to check your submitted
work.

Individual Participation
Class participation is important for all case-oriented courses. In some renowned schools, individual
participation can account for up to 50% of the total course grade. Your participation grade will
depend on your attendance record, and more importantly, on the quality of your participation
leading to understanding and solving the issues discussed. It is essential that everyone be well
prepared before attending class. I may randomly call on individuals to present their response to
case questions.

Peer Evaluation
A peer evaluation form will be sent to students via email at the end of this course. Students will be
asked to evaluate their teammates’ contributions. The median score assigned by your teammates to
you will be your peer evaluation grade. Please be assured that the peer evaluation grade you assign
to others will be kept in strict confidentiality unless there is a written request to waive such
confidentiality by you. Your whole course grade may be severely downgraded if an overwhelming
majority of your team members complained you of free riding.

Course Outline

This course will be divided into four main parts:


1. Introduction: managerial accounting versus financial accounting, management control concepts,
accounting ethics.

2. Cost Accounting
2.1. Introduction and terminology
2.2. Cost behavior, cost-volume-profit analysis
2.3. Decision-making involving cost information: contribution and incremental analyses,
relevant costs, variable costing
2.4. Costing systems: traditional cost accounting systems such as job-order costing and process
costing; activity-based costing
2.5. Further cost and pricing decisions: pricing, target costing and customer profitability
analyses.

3. Management Accounting and Control


3.1. Planning and control systems: Budgetary planning and control; standard costing and
variance analysis
ACCT 5620W Contemporary Management Accounting 2
3.2. Capital budgeting and other long-run decisions
3.3. Organizational design: responsibility accounting and transfer pricing
3.4. Incentive system and performance evaluation, balanced scorecard and EVA

4. Summary, Review and Synthesis

Tentative Course Schedule

Sess Date a.m. / Subject Due Dates Reading


p.m. (chapters)
1 May. 7, 11 a.m. Introduction, accounting and control, J: 1
terminology, cost behavior
2 May. 7, 11 p.m. CVP & contribution analysis J: 4
3 May. 14, 11 a.m. Relevant costs, incremental analysis J: 5, 7
& variable costing
4 May. 14, 11 p.m. Cost accounting systems including Salem J: 2, 3
activity-based costing Telephone

5 May. 21, 11 a.m. Pricing and other cost-related J: 6


decisions
6 May. 21, 11 p.m. Capital budgeting Wilkerson J: 9
7 May. 28, 11 a.m. Budgetary Planning and control Colorscope J: 10
8 May. 28, 11 p.m. Organizational design & Ocean J: 10, 13-14.
responsibility accounting Carriers
9 Jun. 4, 11 a.m. Standard costs & variance analysis J: 11
10 Jun. 4, 11 p.m. Decentralization, performance Pack-iTs J: 10, 13-14.
evaluation & transfer pricing
11 Jun. 11, 11 a.m. Balanced Scorecard & EVA Domestic J: 12
Auto Parts
12 Jun. 11, 11 p.m. Final test

Note 1: The class will run from 9:30 a.m. - 12:30 p.m. and 2:30 p.m. - 5:30 p.m. (Sat)
Note 2: The instructor reserves the right to modify the above schedule according to class progress.
Note 3: The Harvard Business School cases will be distributed to you at the beginning of the semester. Please bring
them to the class indicated above. For best benefit, please attempt all cases even they are not assigned to
your group.
Note 4: “J: x ” refers to Chapter x from Jiambalvo.

Group Case Assignments


Your group will be required to submit two case reports on or before the due dates shown above,
presenting one of them and discussing the other. For presentation, please submit both the case
analysis report and the PowerPoint file. For discussion, a case analysis report will suffice. All case
analysis reports and PowerPoint files will be posted to the WEBCT for your fellow students’
reference. Some cases are more difficult than others. Your instructor will take this into account in
grading assignments. The questions for each case are listed below:

Case 1: Salem Telephone Company


1. “Revenue hours” represent the key activity that drives costs at Salem Data Services. Which expenses in
Exhibit 2 are variable? Which are fixed?
2. Create a contribution margin income statement for Salem Data Services. Assume that intracompany
usage is 205 hours. Assume commercial usage is at the March level.
3. Assuming i) the intracompany demand for service will average 205 hours per month, ii) the firm can
cover $82,000 of charges with Public Service Commission, what level of commercial revenue hours of
computer use would be necessary to break even each month?
4. Evaluate the following options:

ACCT 5620W Contemporary Management Accounting 3


a. Increase price to commercial customers to $1,000 / hour would reduce demand by 30%
(compared to March level)
b. Reduce price to commercial customers to $600 / hour would increase demand by 30%
c. Increased promotion would increase revenue hours by up to 30%. What is the maximum amount
that can be spent on promotion?
5. Can the current report tell the company what to do?

Case 2: Wilkerson Company


1. What is the competitive situation faced by Wilkerson?
2. Are there demerits in Wilkerson’s existing costing system? Can the weaknesses be rectified with the use
of activity-based costing?
3. Identify the activity cost drivers and compute the rate. What are the ABC product costs?
4. What does the new cost information reveal? What should be the actions to be taken by the management?

Case 3: Colorscope
1. Why would any customer, let alone large advertising agencies and departmental stores, go to Colorscope
rather than go to the large printers listed in Exhibit 3?
2. Set up a two-stage cost allocation system to figure out the profitability of different jobs. First allocate the
cost of resources (e.g. wages, depreciation, rent, others) to cost pools (e.g. job preparation, scanning,
assembly, output and quality control) using appropriate diver. Then choose cost driver to allocate the
costs in various cost pools top jobs. You will have to allocate the cost pools to the cost objects (i.e. the
jobs) based on the cost driver rates computed.
3. Compile a job profitability report by allocating costs to the jobs using the cost driver rates that you
estimate in 2 above. Rank customers according to their profitability?
4. What are the rationales of allocating the overhead costs to jobs and to customers? What insights do we
obtain from such exercise?
5. What is the overall financial consequence of the rework to the firm? What should Colorscope do about
rework? How? On the one hand some rework may be necessary because of the quality positioning of the
firm. On the other hand, rework is costly. What do you recommend to solve the cost-quality tradeoff
problem?
6. Should Colorscope do anything about its incentive system? If yes, how?

Case 4: Ocean Carriers


1. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First assume
that Ocean Carriers is a U.S. firm subject to 35% taxation. Second, assume that Ocean
Carriers is located in Hong Kong, where owners is Hong Kong ships are not required to pay
any tax on profits made overseas and are also exempted from paying any tax on profit made
on cargo uplifted from Hong Kong.
2. What do you think of the company’s policy of not operating ships over 15 years old?
3. Do you expect daily spot rates to increase or decrease next year?
For simplicity, assume the following: i) Ocean Carriers uses a 9% discount rate, and ii) the
capesize could still be sold at the end of 25 years for $2.5M.

Case 5: Pack-iTs
1. Is Pack-iT's a feasible venture? Based your recommendations on objective quantitative analysis by
preparing a cash budget, a projected income statement, and a projected balance sheet under the
following two scenarios: 1) base case projection, ii) if sales were 10% less than estimated.
2. How much financing is required?
3. How risky is the venture? (Hint: one viable assessment is the margin of safety under breakeven
analysis).
4. Make whatever decisions and recommendations you think are appropriate. In addition to the Financial
Analysis above, marks will be given for external analysis (e.g. environmental analysis, consumer
analysis, competitive analysis), and marketing analysis (promotion, pricing).

Case 6: Domestic Auto Parts


1. Explain why strategy analysis is needed in designing and implementing a Balanced Scorecard (BSC).
Outline the steps needed to incorporate the strategy analysis in the BSC.

ACCT 5620W Contemporary Management Accounting 4


2. Based on the facts given in the case, what are the strategic objectives of Domestic Auto Parts (DAP)?
Classify them under the following perspectives: i) Financial, ii) Customer, iii) Internal Process and iv)
Learning and Growth.
3. Develop and draw a strategy map for DAP. Note that marks will be awarded for presentation and
diagrammatic quality.
4. Design a Balanced Scorecard for DAP. Outline, based on DAP’s situation, how the BSC be linked to
incentive compensation. Briefly outline an action plan for implementing the BSC.
5. What are the strengths and weaknesses of the strategy formulated by DAP?

ACCT 5620W Contemporary Management Accounting 5


DSME6932W Supply Chain and Logistics Management
- Managing Supply Chains in China

Instructor: Xiande Zhao


Professor, Department of Decision Sciences and Managerial Economics
Director of Center for Supply Chain Management and Logistics
Li & Fung Institute of Supply Chain Management and Logistics
Chinese University of Hong Kong
Office: Room 906, 9/F, No.12, Chak Cheung Street
Tel. 2609-7650 Email: xiande@baf.msmail.cuhk.edu.hk

Times: 09:30-17:30 on Saturday, Venue: ELB 405


Times: 09:30-17:30 on Sunday, May 15, 2010, Venue: CCS LT5

Course Overview and Objectives


This course is designed to expose students to the challenges and opportunities of
managing supply chains in the dynamic environment of China. Since Chinese
companies plays very important role in many global supply chains and Chinese
companies tend to operate quite differently from companies in the Western world, it is
very important for today’s business leaders to understand the issues, problems and
challenges of managing supply chains in China. In this course, students will be
required to analyze and discuss a number of cases of companies operating in China.
Through these case discussions, guest lectures, company visits and a final project
presentations on a real company operating in China, students will learn how to make
strategic and operational decisions in supply chains related to China. They will also
learn how Chinese culture, traditions, political, legal systems and logistics
infrastructure influence supply chain decisions. More specifically, the objectives for
the course are for students to:
1. Understand the business environment in China and roles that China plays in
global supply chains.
2. Comprehend Chinese culture and traditions and how they influence supply
chain operations and decisions
3. Make important decisions related to the choice of supply chain strategies,
design and improvements of supply chain processes
4. Learn how to select supply chain partners and manage supply chain
relationships in the dynamic business environment of china

1
Teaching Methods

This course will use the Case Method and Participant-centered Learning (CMPL)
advocated by the Harvard Business School. The instructor will provide readings and
cases for students to read before class. For each case, the instructor will provide
students with a list of assignment questions. Students are required to read the case
and write down answer to these assignment questions before they come to class. In
class, the instructor will facilitate the case discussions. Students are encouraged to
participate in the class by sharing their opinions and insights concerning the
managerial issues related to the case. They are also highly encouraged to share their
personal and working experience related to the case issues with the class. The
instructor will also share his opinion and insights with the students but will not try to
make conclusion as to what will be the best decision.

All cases used in class involve supply chains that have at least part of the
activities in China. Some of the cases are written by the instructor and some are
written by processors from different business schools in USA, Hong Kong and
Mainland China. Since the instructor has direct involvements with the companies
through research, consulting and other activities, he will also share with you some
inside information which is not in the case. Through these case discussions, we
demonstrate how to identify problems/opportunities, analyze them, recommend a
solution and develop an implementation plan after thorough analyses of pro and cons
of different decision alternatives. Students will also learn how to take into
considerations of the Chinese contexts in term of culture, traditions, political, legal
and business environment in making supply chain decisions.

Assessment
Items Weight
Case reports 50%
Presentations 30%
Attendance and class participation 20%

2
Tentative Schedule with Readings and Assignment Questions

May 7, 2011, ELB 405


Introduction and background to supply chain management in China
• A Brief History of China
• The Stages of Economic Developments in China
• Economic Developments in different regions
• Logistics and distributions in China
• Challenges and issues for managing supply chains in China

Readings:
1. Supply Chain Management in China: Challenges and Opportunities, lecture notes by
the instructor in the form of ppt
2. Flynn, B. Zhao, X. and Roth A. “The Myth of the Dragon: Operations
Management in Today’s China”. Business Horizon. May-June 2007, Pages
177-183
3. Zhao, X., Flynn, B., Roth, A. V. (2007), Decision Sciences Research in China:
Current Status, Opportunities and Propositions for Research in Logistics,
Supply Chain Management and Quality Management, Decision Sciences, Vol.
38, No.1, 39-80

Assignment questions:
1. What are the major challenges for managing supply chains in China?
2. How do Chinese culture and traditions influence supply Chain Decisions?
3. What suggestions can you provide to US managers who will manage supply chain
activities in China?

Morning of May 14, 2011, ELB 405


Role of Supply Chain Management in Global Competition
• Value creation through supply chain coordination
• Strategic Choices in Supply Chain Management
• Discussion of Li & Fung and Luen Thai cases

Readings:
1. “ Fast, Global, and Entrepreneurial, Supply Chain Management, Hong Kong Style:
An Interview with Victor Fung” Harvard Business Review, Sep/Oct, 1998, Vol. 76
Issue 5, p102-114

3
2. Luen Thai Holdings Limited - Creation of Value through Supply Chain
Integration, case developed by Luen Tai Supply Chain Management R & D
Center, Peking University
3. Fisher, M.L., “What is the right supply chain for your product?”, Harvard
Business Review, March-April 1999, pp. 105-116
4. Mason-Jones, R., Naylor, B. and Towill, D.R., 2000, “Lean, agile or leagile?
Matching your supply chain to the marketplace”, International Journal of
Production Research, Vol. 38, No. 17, pp. 4061-4070
5. Lee, Hau, “Triple A supply chains” Harvard Business Review, October 2004,
pp 2-11

Assignment questions for Li & Fung Limited case: (due at the beginning of class on May 14,
2011)
1. What roles does Li & Fung Play in the supply chain?
2. How does Li & Fung create value for its customers?
3. What are some of the key success factors of Li & Fung?

Assignment Question for Luen Thai (due at the beginning of class on May 14, 2011)
1. How does China’s entry to WTO change the competition in the garment and textile
industry?
2. What are some of the major challenges and opportunities for Luen Thai when China
enters into the WTO?
3. What strategic choices did Luen Thai make and how did it implement its strategy?
4. What are the major differences between Luen Thai and Li & Fung in term of its
strategies and supply chain models? Please comment on the pros and cons of their
strategies and supply chain models.

Afternoon of May 14, 2011, ELB 405


Strategic alignments in supply chains
• Competitive strategy
• Order winners/qualifiers
• Operation Strategies
• Supply Chain Strategy
• Impact of environments on strategies and performance
• Discussion of Galanz case

Readings:
1. Lecture notes on strategic alignments in supply chains in the form of ppt

4
2. Operations Strategy of Galanz, case developed by center for supply chain
management and logistics, Chinese University of Hong Kong

Assignment Questions for Galanz Case (due at the beginning of class on May 14, 2010):
1. What lead to the success of Galanz company? Please analyze the company
from the perspectives of competitive strategy and operations strategy?
2. What should Mr. Leung do to lead his company to greater success? How
should the company set priorities and utilize its resources and capabilities to
gain competitive advantages in the marketplace?
3. Should Galanz develop its OBM business in the international market?
Should Galanz contintue its OEM and ODM business?

Morning of May 15, 2011, CCS LT5


Relationship Management and Supply Chain Integration (SCI) in China
• Major Types of SCI
• Factors that influence SCI: power, trust, and relationship commitment
• Roles of Information Technology in SCI
• Issues and challenges of managing supplier and customer relationships in China

Readings:
1. Lecture notes on relationship management and supply chain integrations in the form
of ppt
2. Flynn., BB., Zhao,X., Huo,B., Yeung,J. (2008) “We've got the power! How
customer power affects supply chain relationships” Business Horizons, 51, pp.
169-174
3. ASTEC Power: A Division of Emersion Network Group, case developed by center
for supply chain management and logistics, Chinese University of Hong Kong

Assignment Questions for Li & Fung and Luen Thai (due at the beginning of class on May
15, 2011)
1. How did Luen Tai and Li & Fung manage relationships and integrate their supply
chains?
Assignment Questions for Astec Power case (due at the beginning of class on May 15,
2011)
1. What is the competitive and supply chain strategy for Astec?
2. How did Astec integrate its supply chain? What can be improved and how?
3. How do power, trust and relationship commitment influence supply chain
integration?

5
Afternoon of May 15, 2011, CCS LT5
Product Recalls and alternative strategies for handling recalls
Problems and issues related to recent recalls of product made in China
Product recall strategies and component of product recall systems
Consumer reactions to product recalls
Corporate social legitimacy and responsibilities

Readings:
1. Lecture notes on product recalls
2. San Lu’s Malamine-Tainted Milk Crisis in China, Asia Case Research Center,
University of Hong Kong

Assignment Questions for San Lu Case (due at the beginning of class on May 15, 2011)
1. What are the major causes of this crisis?
2. How should the crisis be handled and how product recall strategies influence the
company in terms of corporate social legitimacy, customers response and
company’s competitiveness
3. What advice would you give to companies in this industry in terms of how to design
and manage their supply chains to avoid future crisis such as this?

Morning of May 21, 2011, ELB 405


Supply Chain Quality Management
• Problems and issues related to recent recalls of product made in China
• Framework and components of supply chain quality management systems

Readings
1. Mattel case, case developed by Ivey School of Business
2. What happened in the toys industry of the world? Material developed
by the center for supply chain management and logistics, Chinese
University of Hong Kong

Assignment questions for Mattel Case: (due at the beginning of class on May 21, 2011)
1. What are the major costs of a product recall to the company? How does product
recall influence the performance of the company?
2. Please analyze the root cause of the problem using quality management and supply
chain management principles?
3. What will be the necessary components of supply chain quality management systems
in order to prevent future quality problems?

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4. What advice can you give to companies who are sourcing from china?

Afternoon of May 21, 2011, ELB 405


Managing logistics in China
• Logistics infrastructure and systems in China
• Challenges of managing logistics and distribution in China
• Logistics Outsourcing
• Third party logistics (3PL) service providers and collaborations between users and
3PL providers

Readings:
1. IDS case, Case developed by Standford Business School

Assignment questions for IDS case (due at the beginning of class on May 21, 2011)
1. What led to the demise of traditional distributors in Asia?
2. What distribution/supply chain challenges did companies faced as it tried to
address the expanding markets in Asia?
3. What is Value Chain Logistics? What benefits were provided by supply chain
solution providers, such as IDS, to companies there were trying to grow in
Asia?
4. How sustainable was IDS value proposition to companies? In other words,
how sustainable was IDS’ business model?

Morning of May 28: ELB405


Managing distributions and retail operations in China
Competitive strategies in the retail industries
Logistics and distributions strategies and operations

Readings
1. DCH Logistic’s Plan for LaCafetiere, case developed by center for supply chain
management and logistics
2. Wal-mart Stores: “Every Day Low Prices” in China. Asia Case Research Center,
The University of Hong Kong, HKU591.

Assignment questions for DCH Logistics (due at the beginning of class on May 28, 2011)
1. What should DCH Logistics do for its client: LaCafetiere?
2. What should DCH Logistic do to further develop its business?

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Assignment questions for Wal-mart Stores: “Every Day Low Prices” in China (due at the
beginning of class on May 28, 2011)
1. Why is Wal-Mart successful in the US? What are its competitive advantages
and its source of advantages?
2. Should Wal-mart replicate its domestic model in its original form in China?
Why?
3. How should Wal-Mart adjust its strategies, business models and its
logistics/distribution systems to achieve success in China?

Afternoon of May 28: ELB405

Green supply chain management and sustainable developments

• Issues and challenges for green supply chain management in China


• Reverse logistics
• Sustainable operations and supply chain strategies
• Final Presentation by students groups

Readings:

1. Wal-mart China: Sustainable Operations Strategy, Case developed by Ivy School of


Business, The University of Western Ontario and School of business and Economics,
Tsinghua University

Assignment Questions for Wal-mart China: Sustainable Operations Strategy case (due at the
beginning of class on May 28, 2011).
1. Why does customer patronize Wal-mart China Stores? What does
sustainability mean to them and how important is it?
2. How should sustainability be incorporated into vendor selection and
evaluation? How could vendors be encouraged to participate in Wal-mart
China’s sustainability initiatives?
3. What are the distinguishing features of Wall-mar China’s distribution system?
How does it achieve relatively high availability with similar level of stocks to
other companies?
4. How can Wal-Mart improve sustainability in its distributions and retail
operations (consider “reduce, reuse and recycle” as well as innovation)?

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June 11: ELB405

Guest lecture by invited industry speakers

Group presentations of the final project

Review and integration

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DSME6932W Supply Chain and Logistics Management
- Managing Supply Chains in China

Final Project Requirements

This project is designed for students to be exposed to real challenges and problems in
managing supply chains in China. Students will form group of no more than five
students, identify a company and some important issues to study. They will gather
data and information from the company or through secondary data source, analyze
them and turn in a final project report by no later than 2:00 PM PM on June 11, 2011
and make a presentation in class on that day. The detailed requirements are outlined
below:

1. The topics or issues studied should be related to Operations and Supply Chain
Management in Greater China region which includes Hong Kong, Taiwan and
Mainland China.
2. The report and the presentation should demonstrate the challenges of managing
supply chains in china and applications of the concept, techniques and framework
learned from this class or other operations and supply chain management related
courses.
3. The group should use a systematic approach to identify problems/opportunities
facing the company, analyze the problems/opportunities, propose and evaluate
alternative solutions, and make recommendations for solving the problems or taking
the opportunities.
4. The final presentation should take no more than 20 minutes including questions and
answers.
4. The final report should be no more than 12 pages long with double space and 12
point fonts. Some tables and figures can be used and are excluded in the page count.

10
FINA6010E: Money and Capital Markets 2011 
Professor: Tom Bain 
OBJECTIVE 
This course is intended to introduce students to how markets and institutions shape 
the global financial system and economic policy. 
 
COURSE SCHEDULE 
Introduction:  
Introducing Money, Banking, and Financial Markets 
The Role of Money in the Macro‐economy 
Financial Instruments, Markets, and Institutions  
Financial Instruments and Markets:  
Interest Rate Measurement and Behavior 
The Term and Risk Structure of Interest Rates 
The Structure and Performance of Securities Markets 
The Pricing of Risky Financial Assets 
Money and Capital Markets 
Demystifying Derivatives 
Understanding Foreign Exchange 
Banks and Other Intermediaries:  
The Nature of Financial Intermediation 
Depository Financial Institutions 
Non‐depository Financial Institutions 
Financial System Architecture:  
Understanding Financial Contracts 
The Regulation of Markets and Institutions 
Financial System Design 
The Art of Central Banking:  
Bank Reserves and the Money Supply 
The Instruments of Central Banking 
Understanding Movements in Bank Reserves 
Monetary Policy Strategy 
Monetary Theory:  
The Classical Foundations 
The Keynesian Framework 
The ISLM World 
Money and Economic Stability in the ISLM World 
Supply and Demand Perspective on Money and Economic Stability 
Rational Expectations: Theory and Policy Implications 
Empirical Evidence on the Effectiveness of Monetary Policy 
 
READING 
Core text: 
“Principles of Money, Banking & Financial Markets” by Lawrence S. Ritter, 
William L. Silber, and Gregory F. Udell 
Other reference texts: 
“Stigum's Money Market, 4E” by Marcia Stigum and Anthony Crescenzi  
“Derivatives Demystified: A Step­by­Step Guide to Forwards, Futures, Swaps 
and Options” by Andrew M. Chisholm 
Reading list: 
“The Ascent of Money: a Financial History of the World” Niall Ferguson 
“The Black Swan: the Ascent of the Highly Improbable” Naseem Taleb 
“The Big Short: Inside the Doomsday Machine” Michael Lewis 
“Liar’s Poker” Michael Lewis 
“Against the Gods: the Remarkable Story of Risk” Peter L. Bernstein 
“Traders, Guns and Money: Knowns and unknowns in the dazzling world of 
derivatives” by Satyajit Das 
“In Fed We Trust: Be Bernanke’s War on The Great Panic” by David Wessel 
 
PEDAGOGY 
Great emphasis will be given to the applied aspects of this material. Throughout the 
classes, students will be expected to develop and articulate their own opinions by 
reading current financial news items. 
 
ASSESSMENT 
Class participation & market updates  10% 
Regular quizzes        20% 
Team report & presentation     40% 
Final exam          30% 
 
 
FINA6065W CORPORATE RISK MANAGEMENT 

I. RISK AND PERCEPTION OF RISK

a) Risk management and gambling: the difference


b) Uncertainty and probability
c) The unknown unknown and the known unknown
d) Perception of risk: framing, recency effects and other common psychological biases.
e) Games and experiments to understand human attitudes towards risk and uncertainty

II. TYPES OF FINANCIAL RISK AND INSTRUMENTS FOR MITIGATION  

a) interest rate risk 


b) FX risk 
c) Inflation risk 
d) credit risk 
e) commodity risk 
f) flight, emissions and weather risk 
g) equity risk  
h) case studies on corporate scandals involving financial risk managements 
i) Cathay Pacific oil hedging 
j) Orange county speculation 
k) Citic Pacific AUD hedging  
l) P&G, Dell and other famous cases 

III. WHY HUMANS AND CORPORATIONS ARE SO BAD IN RISK MANAGEMENT?

a) why are humans and corporations are so bad in risk management? 


b) Incentive structure 
c) Culture and tightly coupling systems 
d) Spaceshuttle Columbia  
e) Three miles island 
f) Group decision making  
g) Good leadership in risk management: Kennedy during Bay of Pigs and Cuban crisis. What makes
the difference? 

IV. MANAGING RISK AS A TRADER AND FOR CORPORATE CLIENTS - LESSONS LEARNT

a) being a trader: incentive to cheat  


b) traps and pitfalls of risk management: winner's curse, over-confidence, wishful thinking,
asymmetric attitudes to loss and gains, etc. 
c) institutional structures for monitoring and the failures 
d) helping subordinates to develop into a risk manager 
e) Why can't corporate risk managers adopt the same standards of traders of banks and hedge
funds? 
Chinese University of Hong Kong
Faculty of Business Administration

FIN6172W: Mergers & Acquisitions


MBA Program 3rd Term 2010-2011

Instructor: Professor Cong Wang


Meeting Time: Saturday
Venue: TBD
Office Hours:
(1) Immediately after each class
(2) Appointment via email
Email: congwang@baf.msmail.cuhk.edu.hk

Course Objectives:
This course deals with various aspects of mergers & acquisitions (M&A). It combines
financial, legal, governance, and strategic perspectives to better understand the objectives,
procedures, legal constraints, and valuation creation and destruction of M&A transactions.
The course will cover a number of cases where students can apply techniques and
theories into real-world situations. Students should note that coverage of this course,
including cases and examples, have the following emphases: (1)The large publicly held
corporations headquartered in the U.S., Europe, HK, and mainland China; (2) Mainly
oriented to finance issues, though the course will also incorporate issues from accounting,
law, strategy, organizational behavior, and other social science subjects; (3) Primary
attention will be given to U.S. laws and regulations, with some discussions on China’s
M&A rules and regulations.

The final aim of the course is to have fun. If you tackle this course earnestly, you will
learn a great deal.

Grading:
Course grades are based on case reports and presentations, class participation, individual
homework, and a final exam.

Class Participation (10% of Final Grade)


Group Case Reports and Presentations (45% of Final Grade)
Final Exam (45% of Final Grade)
Group Case Work

Students are expected to form 7 groups (each group has at most 6 members) to work on
the cases. Each group will formally present one case (there will be two groups presenting
the case “Yeats Valves and Control v.s. TSE International”). A random draw will be
conducted at the end of first week to allocate the cases to each group. Each presenting
group will have 30 minutes to present their analysis. Presentations should include a
careful evaluation of major financial issues, including the case questions and the group’s
specific recommendations. For each case, both presenting groups and non-presenting
groups should submit a typed write-up of at most 4 pages (12-point fonts, single-space,
excluding cover sheet, tables and figures). In your reports, you should document all your
sources.

Students in non-presenting groups should come to class prepared to discuss the cases. In
each case class, several students will be randomly selected to begin the discussion
following the case presentation. The next 20 minutes are reserved for class discussion of
the case. The discussion should focus on offering alternative analyses and raising new
issues not covered in prior comments or taking issue with presenting group’s analysis and
recommendations. We will attempt to bring some clarity to the case discussion and
suggest alternative solutions in the last 20 minutes. Each group can skip one case write-
up (except the case “Yeats Valves and Control v.s. TSE International” and the case you
are going to present). If you plan to skip one, email me at least 1 day before the case
session.

Attendance Policy:
The material covered in this course is challenging. Since many of the topics are
interrelated, class attendance is a key element of the course. If you must miss a class
session, you should email me in advance.

Use of Laptops:
This is a closed laptop environment. If your laptop is open, I will assume that you are
volunteering to answer any question on the table.

Prerequisite: Financial Management or Corporate Financial Reporting

Textbooks:
Required Text:

Mergers, Acquisitions, and Other Restructuring Activities


Author: Donald DePamphilis
(Publisher: Academic Press; 5 edition ISBN: 978-0123748782; Available in the
bookstore)

Recommended Text:.
Robert F. Bruner, Applied Mergers & Acquisitions, (Wiley) University Edition, 2004
ISBN: 978-0-471-39534-8
Detailed Course Schedule:
Session # Topics / Cases / Readings
1 M&A Overview
(May 7 (1) A global perspective
morning) (2) Motivations for M&A
(3) Parties involved in M&A

Essential Reading before the class: DePamphilis, Chapter 1 (page 1-30)


After class assignment:
Subscribe to the NY Times free “DealBook” by signing up at the
following website: http://www.nytimes.com/dealbook .Read the M&A
news daily since it will be the basis of frequent class discussions. Another
useful source is: http://www.thedeal.com .
2 M&A Process and Performance.
(May 7
afternoon) Essential Reading before the class: DePamphilis, Chapter 4, 5 & 1
(page 30-41).
Note: Before the class ends, cases are assigned to each group based on a
random draw.
Distribution of Case #1: Microsoft’s bid for Yahoo!
The group case report is due 8:00 a.m. May 14.

3 Part I: Presentation and Discussion of Case #1


(May 14
morning) Part II: Regulations, Rules, and Governance in M&A
Essential Reading before the class: DePamphilis, Chapter 2.

4 M&A Deal Design: Form of Payment, Exchange Ratio, and Risk


(May 14 Management
afternoon)
Essential Reading before the class:
DePamphilis, Chapter 11.
Distribution of HW #2: Hewlett-Packard-Compaq: The Merger Decision
The group case report is due 8:00 a.m. May 21.

5 Part I: Presentation and Discussion of Case #2


(May 21
morning) Part II: Merger Arbitrage
Essential Reading before the class:
(1) Handouts.
(2) Chapter 18 in “How to Pick Stocks Like Warren Buffett: Profiting
from the Bargain Hunting Strategies of the World's Greatest Value
Investor” (The e-book is available via CU’s library system).

6 Takeover Battles: Weapons, Defenses and Strategies


(May 21 Essential Reading before the class: DePamphilis, Chapter 3.
afternoon)
Distribution of Case #3: Merger Arbitrage Examples
The group case report is due 8:00 a.m. May 28.

7 Part I: Presentation and Discussion of Case #3


(May 28
morning) Valuation in M&A

Essential Reading before the class: DePamphilis, Chapter 7 and


Chapter 10.

8 Leveraged Buyouts
(May 28
afternoon) Essential Reading before the class: DePamphilis, Chapter 13.

Distribution of Case #4: Yeats Valves and Control v.s. TSE


International
The group case report is due 8:00 a.m. June 4.

Distribution of Case #5: Social Capital at Work in PCCW’s Acquisition


of Cable & Wireless HKT
The group case report is due 8:00 a.m. June 11.

9 Part I: Negotiation Exercise


(June 4
morning) Part II: Presentation and Discussion of Case #4

10 Alternatives to M&A: Restructurings, Strategic Alliances, and Joint


(June 4 Ventures
afternoon) Essential Reading before the class: DePamphilis, Chapter 14, 15.

Distribution of Case #6: Framedia (A)


The group case report is due 8:00 a.m. June 11.

11 Part I: Presentation and Discussion of Case #5


(June 11
morning) Part II: Discussion of Guangzhou Auto Group’s backdoor listing

12 Part I: Presentation and Discussion of Case #6


(June 11
afternoon) Part II: China’s M&A
Note: Reading materials will be posted online 2 weeks before the class.

13
(TBD) Final exam (closed book)
Corporate Governance for Private and Family Enterprises
(FINA6222E)

Chinese University of Hong Kong


Third Term, 2010-2011

Instructor: Joseph P.H. Fan


Professor, School of Accountancy &
Department of Finance
Co-Director, Institute of Economics & Finance
The Chinese University of Hong Kong
Phone: 26097839; Fax: 26035114
Email: pjfan@cuhk.edu.hk

Meeting time: 6:45 – 9:45 pm, Wednesday and Friday


Classroom: Amber Room, MBA Town Centre, Unit B, 1/F, Bank of America Tower, 12
Harcourt Road, Central, Hong Kong

COURSE CONTENT AND OBJECTIVES

Most businesses around the world are owned and run by entrepreneurs and their family
members. However, few courses offer scientific analysis to address their critical
governance questions. What do families contribute to firms? Which opportunities and
challenges do family firms face? How can a firm persist for a thousand years and go
through dozens of successions inside the same family? How do family firms cope with
financial crisis and dramatic changes in business environment? How do family
psychology, family structures and family conflicts affect corporate behaviour? How can
families find the right balance between family and outside ownership and between family
and professional management?

This course introduces an economics based analytical framework to address these


questions. Through lectures, case studies, and discussion of contemporary research and
public opinions, we seek to understand how entrepreneurs and their family members
provide unique assets and contributions leading to the success of the firms, and how
various roadblocks challenge the sustainability of the family firm model.

This course emphasizes a global aspect and an international comparative approach. We


realize that the family assets and roadblocks are similar across firms, countries and
cultures, and therefore we can apply a common framework to address fundamental
governance decisions such as ownership structures, managerial compensation and
promotion, and succession and exit, with the aim of improving the well-being of both the
firms and the families behind the firms. This analysis will help us understand why the
corporate governance practices of the family firms are often different from those in

1
standard textbooks and require different considerations by regulators, their business
partners, consultants and service providers.

Students seeking a career in accounting, corporate finance, investment banking, private


banking, management consulting, and general management should find this course useful,
because it highlights the important institutional and human factors in family business
operations that are often not considered in traditional courses. Students who plan their
careers in emerging markets such as China and Asia should also find this course useful,
because it places emphasis on the different governance issues and practices in these
markets.

Course Structure

The course is divided into three parts. In the first part we investigate the underlying
mechanisms that create the uniqueness of a corporation, in particular a family firm. We
will document that these mechanisms for a large part are global and surprisingly similar
across business environments, families, nations and cultures. We will introduce the
Family Business Governance Framework as a tool to identify the unique set of key assets
and roadblocks that a given family firm is facing.

In the second part we will apply the Family Business Governance Framework to address
the all important questions of finding the right ownership structure, planning for
succession and finding the right time and form of exit. Whereas these questions often are
addressed once in a lifetime, each of them contains the power to make the difference
between success and failure in the family firm.

In the final part of the course we will focus on finding the right governance strategies for
family firms with the aim of improving both ongoing operation efficiency and increasing
the well-being of the individual members of the family behind the firm. The topics
include career planning and promotion policy; conflict management; and, finding the
right balance between family and professional boards of directors.

READINGS

A packet of cases and readings will be distributed to you in the first class. Lecture notes
will be posted on the WebCT and distributed in class.

STUDY GROUP
As an important part of the course requirement, you will form study group to analyze
cases and conduct a project. You are responsible for selecting members of your group.
Each group should have 5 or 6 members. In selecting groups, it is ideal to have at least
one student with family firm background in each group. However, it is also advisable to
have a group with diversified interests, e.g. combining interests in family firms, private
equity and general corporate governance. Please submit your group member list in class

2
on May 6, 2011. By then, any student who has not yet joined a group will be assigned to
a group.

GRADING

Case study reports (group) 25%


Field report (individual) 25%
Project (group) 30%
Class participation (individual) 15%
Peer evaluation (individual) 5%

CASE ANALYSIS AND REPORTS

We will use a number of larger cases and mini-cases in the course. There are three cases
which should be solved and submitted on group basis on the respective date when each of
the cases is discussed.

It is important that all of you read and analyze all of the cases before coming to class. In
a typical case discussion, I or a designated student will introduce the case, followed by a
breakout session during which you will discuss the case with your group members. After
the breakout session, we will discuss the case together. You will elect a representative to
report your group’s analyses and recommendations of specific issues. However, everyone
should be prepared to ask and answer questions. Your individual performance in case
discussion will affect your participation grade.

A case provides factual details and organizational circumstances surrounding a particular


managerial situation. The essence of case analysis is to examine the facts by applying the
concepts discussed in the class in arriving at your recommendations. A significant portion
of case analysis grade depends on the identification of key questions/issues, the analysis
leading to your recommendation, and the justification of your recommendations. In
general, the following guidelines will apply to all case studies:

• Each case write-up shall be of the following format: A maximum of five-page


document with a maximum of one page data exhibit. Thus be focused by
addressing the questions head on and providing analytical based arguments and
conclusions. It is advisable to avoid repeating descriptive facts from the cases.
• It is helpful if you think of you as a representative of a consulting firm and the
case company as your client. A set of sample questions are provided below in the
Course Session Section to get you started. However, you are free to identify and
focus on your own questions/issues. Like any consulting assignment, your report
should be organized and structured as if you were actually presenting it to your
client. Merely answering the questions is not adequate and, therefore,
unacceptable.
• The written case (and project) report will be graded based on the following
criteria:

3
Weight Category
30% Written presentation, organization, readability, grammar
and relevance
40% Logic and justification underlying your recommendations
30% Numerical/qualitative analysis and scientific evidence
• Finally, the following seven steps can be very helpful in dealing with case studies
in general:
1. Read the case through rather quickly for familiarity of facts and other
details
2. Read the case a second time to select salient facts, issues etc.
3. Study all the exhibits carefully—in many cases the real story most
often is in numbers
4. Determine the major and minor issues
5. Analyze the issues using concepts and techniques discussed in class
6. Resolve conflicts regarding validity of data and assumptions
7. Make and justify your recommendations

FIELD REPORT

Each of you will interview a business owner and write a field report. We will provide you
a questionnaire based on which you can conduct the survey/interview. The business can
be a small or large company, a closely held or publicly traded company, a company
located in Hong Kong, Mainland, or Taiwan, and with sufficient long (no fewer than 15
years of) history since establishment.

Document: The report should begin with a background description of the business and
the owner, and his/her family, followed by a discussion of specialized family assets and
roadblocks of the owner and his/her firm. The report should also discuss whether and
how the owner designs firm governance to preserve the family assets and bypass the
roadblocks. The length of the report should be within five pages, with one additional page
of data exhibition, and with the filled survey questionnaires as an appendix.

Deadline: The field report should be submitted no later than June 1, 2011.

GROUP PROJECT

Together with your study group members, you will select an entrepreneur or a family run
company with more than 15 years of history in the Greater China (Mainland, Hong Kong,
or Taiwan). Although not a requirement, you could choose one of the companies
surveyed by your group members in the earlier field study.

Similar to the field report, in the group project report you will identify key family assets
and roadblocks of the company, discuss whether and how the business owner has
implemented policies to preserve, enhance, or standardize the family assets and mitigate
the effects of the roadblocks. Different from the field report, you will further analyze the
information you have gathered and provide recommendations of governance policy

4
changes that help sustaining the business. Your analyses leading to the recommendations
should be scientific, based on data and information you have collected for the company.

• Documents: The project reports should be double-spaced with a maximum length


of 20 pages. Illustrate important issues with charts, figures, and tables in the text
(not in the back of the report) whenever possible. You should also prepare an
MS-Powerpoint file for presentation. The submitted hard-copy final report should
be accompanied with a CD containing the report in an MS-Word file, an updated
Powerpoint presentation file, and all the data and spreadsheets that you used to
write the report. The CD (disk) should also include a read-me file listing and
explaining the data files and spreadsheets.

• Grading: The grading criteria of the project report are similar to those of the case
reports.

• Deadline: The project report should be submitted no later than June 15, 2010.

• Presentation: All study groups will present their projects on June 8, 2011.

PARTICIPATION

We will keep track of the level of your participation throughout the course. Your
participation grade depends on the quality (not quantity) of your contributions to the class
through attendance, asking and answering questions in class, participating case study
presentation and discussion, and contribution of materials relevant to the class.

PEER EVALUATION

Your performance in group-based works (case studies and the group project) will be
ranked by your team members at the end of the course. The average ranking you receive
from other team members will determine your overall ranking. The overall ranking will
in turn determine your peer evaluation grade.

COURSE SCHEDULE

Part 1: Decomposing Culture: The Family Business Governance Framework

Session 1: May 4

Lecture 1: Introducing Family Business Governance Framework

• Course introduction

5
• Family firms basic
o Defining family firms
o Family firms in numbers: global and industry pattern
o Characteristics of family firms
o Governance issues of family firms
o Are family firms better or worse than non-family firms?
• The Big Challenges
o Finding the right model of ownership.
o Succession/Exit
o Finding the right governance strategies
• Family Business Governance Framework
o The global similarities: Examples of family assets and roadblocks and
their impact on business development.
• Mini-cases: Toyota, IKEA

Session 2: May 6

Lecture 2: Identifying Family Assets as the Enhanced Value that the Family
Delivers to the Firm

• Value driven leadership


• Political and business networks
• Family spirit and the apprenticeship model
• Mini-Cases: Hoshi Ryokan, Yangjiang Shibazi, Wahaha

Lecture 3: Understanding Roadblocks in a Family Business

• Why are family firms constrained in business development?


• Family roadblocks
• Institutional roadblocks
• Market and Industry roadblocks
• Mini-Cases: Vordingborg Lumber Yard, Li & Fung, The Shanxi merchants, Bank
of East Asia and other family-run banks in Hong Kong

Session 3: May 11

Lecture 4: Family Business Governance Framework

y Reviewing family assets and roadblocks and their impacts on family business
y The family business governance (FBG) framework and its dynamics
y Using the FBG framework to choose the right governance model

Case Study: Heraeus Family Governance for a Global Company (German)

6
(Case report due May 11 in class)
Case Questions:
1. Analyze the key assets in the Heraeus Company.
2. Which of these assets are related to being a family firm? What is the key
contribution from the family to the firm? What does it mean to be a global family
firm with thousands of employees and revenues exceeding 10 billion Euros?
3. Discuss how the contribution from the family to the corporation can be transferred
through generations? What are the opportunities and the challenges in continuing
adding value across generations?
4. Evaluate to what extent that the company’s key asset can be transferred in the
unlikely case that the Heraeus family sold the company to outside owners.

Case Study: SUN Brewing (A) (Russian business context, Indian Business Family)
The case will be discussed in class but there is no required write-up.
Case Questions:
1. Analyze the set of constraints that the Khemka family is facing in order to
develop the Sun Brewery further. Be specific on to what extent the challenges
origin from inside the family or from broader effects of industry, financial and
market development.
2. Discuss the advantages and disadvantages for two options that the Khemka family
is facing. Which option is best for Sun Brewery and is this also the best option for
the Khemka family?
3. Estimate how much the Khemka family would be required to inject to fund future
growth and meet required capital expenditures.

Using the Family Business Governance Model to Ask the Right Questions

• The Family Business Governance model and its applications


• Applying the FBG model as a strategic tool

Please prepare and be ready to discuss the following exercise in class:


Apply the FBG model to analyze ownership and management structures in Heraeus
and SUN brewing company. Identify the key specialized assets and the key constraints
and evaluate the ownership and management structure of the two firms today. On the
basis of your findings, how do you see the ownership and management structure of
the two firms evolve in the future?

Part 2 : Once in a Life Time Governance Choices

Session 4: May 13

Ownership Design

• Global variety in business ownership


• Ownership as a bundle of property rights

7
• Why is control important?
• How to preserve control inside families by separating control from ownership?
• The dynamics of family business ownership
• Ownership in family trusts and charitable foundations
• Using the FBG framework to identify the key challenges in designing the right
ownership structure for the family firm, including:
o How to cope with the natural tendency of ownership dilution across
generations?
o Decision right allocation: family CEOs or professional CEOs
o Dealing with minority ownership outside the family
• Mini-Cases: New World Development

Session 5: May 18

Ownership Design (Continued)

Case Study: The New York Times Co. (USA)


(Case report due May 18 in class)
Case Questions:
1. Analyze the ownership and governance structure of New York Times up to 2004.
Provide a discussion of the family’s objectives during this century of ownership
and the means that they implement to fulfil these objectives.
2. Why is family control so dominating in the media and newspaper industry? Relate
your answer to the Family Business Governance Framework?
3. Discuss to what extent the set of family assets and the set of constraints of family
ownership of New York Times (and other family owned media companies) has
changed since World War II and relate this to the observed tendency to industry
consolidation.
4. Analyze the governance and ownership situation in NY Times around 2006 from
the perspective of the different groups of owners? If you were Arthur Sulberger,
Jr., what would you then do with respect to the future ownership and governance
structure?

Session 6: May 20

Succession

• Global Examples of Succession


• The Big Picture: Numbers, forms, determinants of family succession
• The economic consequences of succession

The four big challenges of family succession:


• The challenge of transferring specific assets through generations
• The challenge of the apprentice model
• The challenge of a simultaneous transfer of management and ownership

8
• The challenge of changes

Mini-Cases: Lai-sun Group; Fantai Kitchenwares; Haixin Group

Session 7: May 25

Succession (Continued)

Case Study: Formosa Plastics Group: Business Continuity Forever


(Case report due May 25 in class)
Case Questions:
1. What did Wang Yong-ching expect firm his family after his death? What did he
mean with “Business Continuity”? And why did he not state his succession
intention explicitly?
2. How would you characterize the business, philosophy and organization of the
Formoza Plastic Group.
3. What are the challenges to business continuity and succession in this case? What
have they done to meet these challenges? What would you recommend as
alternatives?
4. What do you predict for the future of family ownership over Formosa Plastics
Group?
5. What lessons have you learnt? Are these lessons transferable to other family firms
you know of or are personal related to?

Session 8: May 27

Conflict Management

• Family Conflicts and Sibling Rivalry

Case Study: J. Perez Foods (Dominican Republic)


The case will be discussed in class but there is no required write-up.
Case Questions:
1. Describe the family business organization and the succession planning before
Jaime Sir death. What does the individual family members contribute to the firm?
2. Evaluate the succession and identify the roots of the following family conflicts. In
answering this question you shall for each family member evaluate the
expectations, the ambitions, the business concerns and the actions taken.
3. Evaluate the potential scenarios for moving forward as a business family. Is the
best solution for the family also the best solution for the firm?

Exit
• Why exit the family firm?
• Examples of exits
• Ways out of the family firm: MBOs/MBIs, Strategic Sale

9
• Sale to a Private Equity Buy-out fund
• Challenges and Opportunities in exit

Session 9: June 1

Part 3: Strategies for Family Business Governance

Family and Corporate Boards

• Roles of boards
• Economic analysis of boards
• Board composition in family firms
• Changing the family board to a professional board

Promotion and Compensation Policies


• The basic of executive pay and promotion
• The pros and cons of incentive based compensation
• Division of power between family and non-family managers
• Differences in pay and promotion between family and non-family managers

**Field Report Due

Session 10: June 3

Financing, Investment and Distribution Policies


• Going public decision
• The control-growth tradeoff
• Diversification or focus?
• Dividend policy: for families or shareholders?

Conclusion: Sustaining the Legacy of Family Business

• Review of the main issues in the governance of family business


• Summary of how to sustain the legacy of family firms

Sessions 11: June 8

Group project presentation

**Group project report due June 15

10
DEPARTMENT OF FINANCE

Programme: Master of Business of Administration


Term 3A - 2010/11

Course Title: Venture Capital and Private Equity


Course code: FINA6230K

Venue : CCS LT7

Dates : 20, 27 Mar, 3, 10, 17* Apr 2011 ( All Sundays)

Time : 9:30 am to 1:00 pm (morning)


2:00 pm to 5:30 pm (afternoon)
• From 9 am to 6 pm on April 17.
Total duration : 36 hours

Lecturer : Professor Wilton Chau

Contact No : (852) 9683 6684


(65 ) 9683 6218
wchau@qleap.com.hk
Email address : wiltonchau@baf.cuhk.edu.hk

1
COURSE OBJECTIVES

The primary objective of this course is to equip students with good understanding of
venture capital and private equity industry. This course gives in-depth knowledge of the
structure and mechanism such as the incentive schemes and exit strategies of the industry.
In addition, students will be provided different arguments about the pros and cons of
involving VC financing under various conceptual frameworks and hypotheses suggested
by researchers globally. The applicability of these conceptual frameworks and
hypotheses in China and Hong Kong will be addressed in details.

Apart from the theories covered in the first lecture, this course highly concentrates on
market practices. It emphasizes on developing students with skills on project evaluation,
company valuation and investment due diligence. Techniques such as drafting a term
sheet and structuring a convertible note will be discussed thoroughly. Special attention
will be given to the experiences (both good and bad) in investing ventures in China. To
consolidate the practical aspect of the course, guest speaker(s) in the VC/PE industry will
be invited to share his/her actual experience with the class. After completing this course,
students should understand investment criteria and process of venture capitalists and
private equity fund managers.

This course is suitable for students who have genuine interests in the industry and those
who consider raising funds for their ventures from various industrial players. In addition,
this course and the proposed restructured course ‘MBAC6091 New Venture Business
Project (Fund Raising for Entrepreneurial Venturing)’ represent the ‘buy-side’ and the
‘sell-side’ of the game. The restructured MBAC6091 will concentrate on skills &
techniques for venture development and fund raising. Students who want to have a
complete picture and in-depth knowledge of this area are recommended to take both
courses. However, due to the limited seats available in MBAC6091, priority will be given
to students who take Entrepreneurship as their concentration.

All cases adopted in this course are real investment cases with or without modifications.
If a ‘live’ case is used for case study, students will be required to sign a non-disclosure
agreement

EXPERIENCE SHARING

Speaker: To be advised

Background

2
ASSIGNMENT

Investment debate

CRITERIA OF ASSESSMENT

Participation 30%
• Attendance (15%) (individual)
• Q&A (15%)

Assignment: Investment Debate 70%


• presentation and responses to questions 40% (individual)
• written recommendation 30% (group)

*Students are required to bring along their name plates to attend the class.

READING LIST

Textbook:
1. Deal Terms – The Finer Points of Venture Capital (Deal Structure, Valuation,
Terms Sheet, Stock Options and Getting VC Deals Done) by Alex Wilmerding

Reference Reading:
1. The “Peacock Model” as A Multi-Value Approach to Angel Investment by Wilton
Chau and Kevin Au.

3
COURSE OUTLINES
Class Date Course content Activity
20 Mar 2011 Terminology Team formation
morning Private equity/venture capital industry
• HK & China Case: Killed by own fear
• VC/PE fund Structure
Investment process
afternoon Theories and hypotheses developed Projects allocation
for VC & PE industry
Problems of VCs in Hong Kong
Practical skill 1: positive thinking
(Successful Investors Story 4)
27 Mar 2011 Project evaluation
morning
Speaker: To be advised

Afternoon Due diligence Discussion of Assignment


A practical view of asymmetric
information
Investment Approach (Peacock Model)
3 Apr 2011 Valuation & Valuation protection Group discussion
morning
afternoon Practical skill 2: identity
shifting/attribution
Documentation
• Term sheet
• Convertible notes
10 Apr 2011 Negotiation & term sheet Group discussion
morning Practical skill 3: detecting lies
afternoon Investing in China
• Structure
• WFOE structure & tax
implications in China
The Hot Industries
- Biotechnology
- Renewable energy
Lessons from Wilton’s portfolio
17 Apr 2011 4:45 Course & Teaching Evaluation
Morning & All teams
Afternoon Assignment: Investment analysis &
presentation

Wilton Chau
January 6, 2011

4
MASTER OF BUSINESS ADMINISTRATION

Programme: Term 3A - 2010/11

Course Title: New Venture Business Project


(Fund Raising for Entrepreneurial Venturing)

Course code: MBAC6091K

Venue : ELB LT3

Dates : March 19, 26 & April 2, 9 16 & 30, 2011


(six Saturdays)
Time : 9:30 am to 12:30 pm (morning)
2:15 pm to 5:15 pm (afternoon)
Total duration : 36 hours

Lecturer : Professor Wilton Chau

Contact No : (852) 9683 6684


(65 ) 9683 6218; (86) 13 7188 71818
Email address : wiltonchau@baf.cuhk.edu.hk

1
COURSE OBJECTIVES

Most of the young ventures fail within the first three years of their establishment. One of
the main reasons for such high failure rate is the lack of financial resources. As only
limited financial resources are available to start-ups, entrepreneurs are required to plan its
business careful and are not given any ‘cushion’ financially for making mistakes.
However, it is a business nature to make mistakes, particular to those young
entrepreneurs who usually do not realize the constraints and problems faced by small
young ventures, and enter the market without proper preparation.

This course is a highly practical course addressing the above problems. It emphasizes on
several major topics related to executing a business opportunity and securing required
financial resources. This course analyzes critical issues concerning business ventures,
particularly ventures with innovative idea and technology, in details. Real cases will be
used to highlight the impact of those issues on the success of ventures.

This course recognizes the importance of financial resources to the survival as well as the
growth of young ventures. About 70% of this course will be spent on fund raising for
young technology ventures. In practice, young ventures seldom get any serious funding
from investors unless their entrepreneurs know how to approach third-party investors.
Therefore, this course provides special attention on potential investors such as angel
investors and early-stage venture capitalists so that entrepreneurs will be able to address
the concerns of these investors in the fund-raising exercise.

After taking this course, students are expected to have a good understanding on several
issues such as the business model, execution path & hurdles, investment proposal, due
diligence, term sheet and presentation skills that are directly related to their ventures and
the ways to obtain appropriate financing.

This is a course with heavy workload. Students will be divided into groups of 3 each.
They are expected to identify their own business opportunities. Proper guidelines will be
given during the course on how their ideas can be converted to fulfill the requirements of
assignments 1, 2 & 3. The students should note that they are required to submit the soft
copies of their Assignment 1 in power point format prior to the beginning of the first
lecture. For Assignment 2, each group is required to meet with the lecturer on a group-
by-group basis.

EXPERIENCE SHARING

Speaker: To be advised

Background

2
COURSE OUTLINE

The course is divided into 3 main parts plus an experience sharing session:

1. Venture Formation & Investment Proposal (35%)


z Company & organization structure
z To evaluate & crystallize a business opportunity (business & revenue model)
z Execution and hurdles
z Developing your prototype
z Market sounding & product launching
z Manufacturing & distribution (out sourcing)
z Writing an investment proposal

2. Seeking Early-stage Financiers (30%)


z To analyze your financial needs & define your funding rounds
‐ Pre-revenue (seed, R&D, start-up)
‐ Pre-profit (first round, expansion)
z Government supports (SERAP, HKSTP IncuTech)
z Angel investors
z Professional venture capitalists
z Making your deal investable
z Financial projection, funding stages and performance milestones
z Deal structure and term sheet for private placement

3. Presentation Skills and Fund Raising (35%)


z Building your confidence
‐ Rehearsals
‐ Q&A
z Investors’ perception (the concept of Ponzo Monsters)
z Presentation skills
‐ Attention
‐ Story telling
‐ Closing
z Preparation for due diligence

Timetable
Mar 19: Evaluation of an ideal; and course outline
Mar 26: Business plan; marketing plan; and investment proposal
Apr 2: Stages and sources of financing; and angel investment
(April 4-8: Individual meetings – Assignment 2)
Apr 9: Presentation skills
Apr 16: Due Diligence, valuation; and term sheet
Apr 30: Presentation of Assignment 3

3
CRITERIA OF ASSESSMENT (Individual: 70%; Group: 30%)

Participation (individual) 30%


‐ Attendance (15%)
‐ Q&A during lectures (15%)

Assignment 1: Business idea outline (individual or group) 10%


‐ Presentation (on 19 March 2011)

Assignment 2: Group Presentation of Investment Proposal 20%


Framework (individual and group) (on 4 -8 April, 2011)

Assignment 3: Investment Proposal Presentation (on 30 April 2011) 40%


• peer review (15%)
• presentation and Q&A (15%) (individual)
• written proposal (10%)

ASSIGNMENTS

1. Presentation of a business idea (individually or in group)


‐ A max. 4-page power point presentation: What is your idea? Why is the
idea so special? How are you going to do it?
‐ 5 minutes presentation on March 19, 2011

2. Presentation of an investment proposal framework
‐ Individual group meetings with the lecturer during April 4 – 8
‐ 15 minutes ppt + 30 minutes Q&A (up to 1 hour when necessary)

3. Investment proposal
‐ 15 minutes ppt + 5 minutes Q&A
‐ A 16-page written proposal (single-side, font:12 & spacing:1.5; excluding
cover page, table of contents and appendices)

REFERENCE BOOK

1. Angel Capital: How to Raise Early-Stage Private Equity Financing by Gerald A.


Benjamin and Joel B. Margulis

Wilton Chau
January 6, 2011
Note: Students who miss any formal lecture could be invited to the make-up sessions to be held in the
following Saturday morning prior to the start of the scheduled lecture.

4
MGNT 6310E Chinese Leadership & Organization
MBA Elective (2011)

Professor Ignace Ng
Office: MBA Town Center
Phone:
Email: ignace@baf.msmail.cuhk.edu.hk
Office Hours: By Appointment

Readings:

Set of compiled articles and cases

Overview of Course:

The course is designed to provide the participants an understanding of Chinese values, leadership
skills, and how these values affect effective leadership in Chinese societies. To facilitate the
learning process, we will use readings, cases, lectures, exercises, class discussions, and a group
project. It is also worthwhile to think of yourself as a co-producer to the contents of this course
in that your participation will contribute as much to the learning of your peers as the other
learning aids.

Course Evaluation:

Group Project 30 %
Personal Leadership Development Plan 40 %
Participation and Attendance 30 %

Group Project:

For this component, each group of students as assigned by the MBA office will be responsible
for assessing the leadership style of a prominent Chinese individual along leadership dimensions
discussed in class. The group paper is due on the last day of class and should be 10 pages in
length.

Personal Leadership Development Plan:

At the end of each class, you will be given a personal questionnaire to fill out. Combining this
information about your with the course contents, you will assess your current leadership
effectiveness (strengths and weaknesses) and develop a personal leadership plan for the short-
term (1 year) and the longer term (3 years from now). The self-assessment and the plan should
not exceed 10 pages and are due on the last day of class.
Class Participation and attendance:

For the participation component, you will be assessed on the basis of attendance (10%) and
contributions to class discussions. In evaluating the contributions, I will take into account the
quality of the contributions as measured by brevity and tact.

Course Schedule:

May 3 Chinese Values and Defining Leadership

In the Eye of the Beholder: Cross-cultural Lessons in leadership, Academy of


Management Perspectives (Feb. 2006)

May 5 Networking & Guanxi

The People Who Make Organizations Go or Stop, HBR (June 2002)


Guanxi: Sustainable competitive advantage, Academy of Management Executive
(1998)

May 12 Communicating and Presenting to the Chinese

Trouble in Paradise, HBR case study (Aug. 2003)


Change the way you persuade, HBR (May 2002)

May 17 Leading Change and the Chinese Art of War

Strategic Management Thought in East Asia (Organizational Dynamics, 2004)

May 19 Chinese Negotiations Practices

Guanxi in Jeopardy (Handout)

May 24 Chinese Negotiations Practices (Continue)

Asian Bargaining Tactics (Handout)

May 26 Leading Teams (of Chinese and non-Chinese)


Canada-China computer crisis (Handout)

May 31 Chinese Decision Making and Power

Leadership That Gets Results, HBR (April 2000)

June 2 Retaining Chinese Employees

Job Sculpting, HBR (Sept. 1999)


China in the Red (Video)

June 7 Trustworthiness and Emotional Intelligence

What Makes a Leader, HBR (Nov. 98)

June 9 Course Summary


MKTG 5012W: MARKETING RESEARCH
Third Term, 2010-2011
Department of Marketing
The Chinese University of Hong Kong

Instructor: Prof. Haksin Chan T.A.: Mr. Alan Wong


Phone: 6181 2575 Phone: 2609 7808
Email: hchan@cuhk.edu.hk Email: alanwong@baf.msmail.cuhk.edu.hk

Course Objectives

This course is designed with the following objectives in mind:

1) To develop an appreciation for the managerial relevance of marketing research.


2) To introduce the major marketing research methods and their pitfalls.
3) To provide an opportunity to walk through the marketing research process (with the
guidance and support of the instructor).

Grading

Your final grade will be determined by a scale no more stringent than:

A: 86% and up
B: 70% to 85%
C: 50% to 69%
D: under 50%

The following weights will be used:

Attendance and Participation 20%


Assignments and In-class Exercises 20%
Project Report and Presentation 30%
Final Exam 30%

Class Participation

It is my belief that much of the learning at the graduate level takes place outside of class. I will
give lectures, lead discussions, answer questions, and provide guidance. It is up to you to learn.

Since case analyses and real-life examples will be used throughout the course to illustrate the
application of important concepts, I expect you to contribute to in-class discussion on a regular
basis. Remember that no comment or question should be thought of as too simple or stupid to
be brought up. You are also encouraged to share any experiences related to the general topic of
marketing research.

1
Group Work

The class will be divided into groups of 5 - 6 members. Throughout the course, members of a
group will work together on different assignments and in-class exercises.

In addition, each group will be responsible for preparing a research report on a specific product,
business, or industry in Hong Kong. You are to identify a research question of interest to you
(subject to my approval), and to apply some of the methods that you will learn in this course to
answer the question. The project report should identify the research question, describe the
methodology, analyze the data, and discuss actionable managerial implications.

The project report, due on April AA, should contain a two-page executive summary, a main
body (maximum 15 pages), and appendices with supporting evidence (no upper limit). The
report will be graded on both content and style, so make sure it is well-structured and easy to
read.

On April AA, each group will give a 15-minute presentation to the whole class. Evaluation
criteria include rigor, thoroughness, insightfulness, presentation skills, and overall
professionalism.

All members of the group will receive the same grade for the group work unless the group
consensus is that some member(s) did not contribute their fair share. Each group member will
fill out a confidential Peer Evaluation Form at the end of the course. Grades will not be given to
those who fail to submit the Peer Evaluation Form.

Final Exam

There will be a comprehensive final exam, covering lectures, textbook materials, and additional
readings. Note that make-up exams will not be given, unless the circumstance falls within
university approved guidelines.

Required Readings

Malhotra, Naresh K., Basic Marketing Research: A Decision Making Approach, 3rd edition
(Pearson International Edition), Prentice Hall, 2009. Xeroxed copies of other required readings
will be handed out throughout the course.

Recommended Readings

Carson, D., Gilmore, A., Perry, C. and Gronhaug, K., Qualitative Marketing Research, Sage
Publications, 2001.

Darren, G., SPSS for Windows Step by Step: A Simple Guide and Reference, 13.0 Update,
Pearson Education, 2006.

2
Course Schedule

Date Topic
3/19 (a.m.) Course Introduction
Marketing Research and Managerial Decision Making (Ch. 1)

3/19 (p.m.) Problem Definition and Research Design (Ch. 2-3)


Exploratory Research (Ch. 4)
Qualitative Research (Ch. 6)

3/26 (a.m.) Survey and Observation Research (Ch. 7)

3/26 (p.m.) Causal Research (Ch. 8)


Project Discussion

4/2 (a.m.) Measurement and Scaling (Ch. 9-10)


Survey Research Assignment Due

4/2 (p.m.) Questionnaire Design (Ch. 11)


The Research Report (Ch. 19)

4/9 (a.m.) Sampling (Ch. 12)

4/9 (p.m.) Data Collection and Preparation (Ch. 14-15)


Project Discussion

4/16 (a.m.) Data Analysis and Interpretation I (Ch. 16)

4/16 (p.m.) Data Analysis and Interpretation II (Ch. 17-18)

4/23 No Class (Public Holiday)

4/30 (a.m.) Final Exam

4/30 (p.m.) Project Presentations

Note: The course schedule may be modified at the discretion of the instructor.

3
MKTG 6011E Strategic Marketing
(2010-2011, 3 rd Trimester, MBA)

Lecturer: Mr. LARRY K Y POON


Adjunct Professor
Department of Marketing, CUHK
Honorary Institute Fellow
The Asia-Pacific Institute of Business, CUHK
8/F, No.12, Chak Cheung Street, Shatin, N.T., Hong Kong
Tel: 31634305
Mobile: 91309147
Fax: 26035136
E-mail: larryp@baf.msmail.cuhk.edu.hk

Teaching Assistant: Ms. May Poon


Tel: 26097808
E-mail: tmpoon@baf.msmail.cuhk.edu.hk

Time and Location: Monday, 6:45 p.m. - 9:45 p.m., Town Center, Central
Wednesday, 6:45 p.m. - 9:45 p.m., Town Center, Central

Textbook: Reading assignments are to be completed prior to and in preparation for class
discussion. They are critical to the success of the course and to your comprehension
of marketing strategies. Chapters are found in Strategic Market Management 8 th
Edition by David Aaker

Reference Books: (1) Kotler and Keller (2009) Marketing Management 13th edition, Prentice Hall
(2) Philip Kotler (2001) Kotler on Marketing, Free Press
(3) Michael E. Porter. (1998) Competitive Advantage, Free Press
(4) Chan Kim and Renee Mauborgne (2005) Blue Ocean Strategy, USA: Harvard
Business School Publishing Corporation
(5) Kaplan Robert S. and Norton David P. (2004) Strategy Maps: Converting
Intangible Assets into Tangible Outcomes, HBS
(6) Jim Collins (2001) Good to Great, New York: Harper Business
(7) Keegan, W.J. (2005) Global Marketing Management 4th edition, New Jersey:
Prentice Hall
(8) Chris Anderson (2006) The Long Tail, Hyperion

Assessment: Group/ Class Participation 20%


Tests 40%
Action Learning Project 40%
Total 100%

1
Objectives: This course aims at providing students with both (1) conceptual understanding on
what strategic marketing is and why it is so important in the contemporary business
world and (2) hands-on practice in developing a realistic marketing strategy (with
focus on application). Upon completion of this course, students are expected to
have adequate knowledge and technical skills on strategic marketing,
implementation and be able to formulate effective strategy. In addition to the
traditional lecturing method, this course will include case analyses, pre-class
exercises, group discussions, presentation and an action learning project.
Course schedule:

Date Topics
Mar
L1-14th -> Orientation
-> Chapter 1

z Review on marketing management


z Introduction and overview of strategic marketing management

L2-16th --> Chapter 2


z External analysis
z Customer analysis

L3-21th > Chapter 3, 4,


z Market analysis
z Competitor analysis
z Customer value and satisfaction strategy

L4-23th -> Chapter 5, 6

z Environmental analysis
z Strategic uncertainty
z Business unit strategic plan template I

->Case analysis I/discussion I

L5-28th -> Chapter 7, 8


z The sustainable competitive advantage
z Value proposition
z Business unit strategic plan template II

-> Case analysis II/discussion II

L6-30th --> Chapter 9


z Branding
-> Case analysis III/ discussion III

2
Apr
L7-4th -> Chapter 10
z Energizing the business
z Good to great

-> Case analysis IV/ discussion IV

L8-6th -> Chapter 11,12


z Leveraging the business
z Creating new businesses
z Blue ocean strategy

->Case analysis V/discussion V

L9-11th > Chapter 13, 14


z Global strategies
z Setting priorities for businesses and brands
z The long tail

-> Case Analysis VI/ discussion VI

L10-13th -> Chapter 15


-> Test
-> Strategy maps

L11-18th -> Project presentation I

z Discussion and inspiration

L12-20th ->Project presentation II

z Discussion and inspiration

No Class- 25th Easter Holiday

L13-27th ->Concluding session

z Learn the theory and throw it away

Note:
1) Students are required to read the assigned chapters before class. Assignments are subject to change as
may become appropriate.
2) Two tests will be conducted according to the studying progress, pre-class exercises will be integrated.

3
Project requirements:
1) The project is to be worked on team basis.
2) The class will be divided into teams with 5 to 7 students (tentatively)
3) Topics will be assigned one month after the first lesson
4) The written report should be handed in to lecturer on or before the final presentation day
5) The report is limited to 15 pages maximum excluding appendix
6) The report should be typed on A4 size papers and in double line spacing
7) Oral presentation of the project is required (English)
8) Each group should distribute its executive summary to all students on the presentation day
9) The project is an integral part of this course. It is expected that students can learn from each other
during the preparation and presentation.
10) Lecturer will conduct tutorial for individual group to facilitate studying and learning

Citation of sources
Whatever work you submit must be your own. Claiming work written by others to be your own is
plagiarism, a serious academic offence. Plagiarism will not be tolerated. We will actively search for
plagiarism using software purchased by our university. Please straightly observe the announcement of
discipline on plagiarism by our faculty office.

We encourage you to use any and all information sources. However, when you quote directly you must
use quotation marks around your direct quote and insert a footnote and whenever you paraphrase another
person’s words, you must insert a footnote. In either case, your footnote must contain a full citation that
will enable the reader to find the source, independently verify facts, determine the extent to which your
ideas derive from the source and follow your original reasoning.

LARRY K Y POON
January 2011

4
MKTG6017E—STRATEGIC BRAND MANAGEMENT
Wednesdays/Fridays 6:45 to 9:45 pm
MBA Town Center

Instructor: Dr. Samart (Sam) Powpaka


Office: CCS 1124
Office Hour: Wednesdays/Fridays 5:30 to 6:30 pm at Town Center or by appointment
Contact Numbers: Tel. 2609-7652 (office), Tel. 9136-6962 (mobile)
E-mail: powpaka@cuhk.edu.hk
MSN Messenger: krungthep@hotmail.com

Course Description

Strategic brand management is the process of building, measuring, and managing brand equity.
This course aims at providing students with both (1) conceptual understanding on what strategic
brand management is and why it is so important in the contemporary business world and (2)
practical marketing research that is useful for strategic brand management.

Upon completion of this course, students are expected to have adequate knowledge and technical
skills to perform successfully as a brand manager.

Instruction Method

To achieve the objective, in addition to the traditional lecture, this course will include discussion,
group exercises, and group project. The achievement of the course objective largely depends on
the preparation and participation by all students.

Class Attendance

Your preparation and attendance are very important for this course. You are strongly encouraged
to attend all class sessions. Punctuality is also very important. If for some reason you have to be
late or miss a class, please e-mail me to let me know in advance.

Textbook

Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 3rd edition, by
Kevin Lane Keller, Pearson Education/Prentice-Hall, 2008.

Grading Policy

There will be one test (40%), one group project (40%), in-class group exercises and case
discussion (10%), and attendance and participation (10%). The final grade given will be subject to
the approval by the examination panel. The grade distribution policy of the faculty will be strictly
observed.
Class Schedule

Date Topic/Activity

May 04 Marketing and Brand Management (Read Ch. 1-3)


Case Assignment: Creating a Global Brand—Nike

06 Building Brand Equity I (Read Ch. 4-5)


Case discussion: Creating a Global Brand—Nike

11 Positioning Research (BA Computer Lab)

13 Building Brand Equity II (Read Ch. 6-7)


Case Assignment: Branding an Ingredient—Intel Corporation

18 Measuring/Monitoring Brand Equity (Read Ch. 8-10)


Case Discussion: Branding an Ingredient—Intel Corporation

20 Managing Brand Equity I (Read Ch. 11-12)


Case Assignment: Assessing and Managing Brand Value—Snapple

25 Managing Brand Equity II (Read Ch. 13-15)


Case Discussion: Assessing and Managing Brand Value—Snapple

27 Review

June 08 Exam (Ch. 1-15)

10 Project Presentation