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University of Texas at Dallas

School of Management

BA 4305-502 Strategic Management


Fall 2007

Instructor: Eric Tsang


Office: 4.412
Phone: (972) 883-4386
Email: ewktsang@utdallas.edu
Office hours: Monday 4 - 5:30 pm
Teaching Assistant: David Weng
Writing Tutor: Cynthia Edmond
Course co-requisite and prerequisites

Co-requisite: BA 4371
Prerequisites: BA 3341, BA 3351, BA 3352, BA 3361 and BA 3365

Course description

This is a capstone course aiming to integrate what students have learned in other classes,
including finance, accounting, operations, MIS, marketing, and organizational behavior and
use this knowledge to study the strategic management of the firm as well as the
responsibilities of a general manager.

The complexity of today’s business environment demands that top managers have the
necessary skills to diagnose operational and strategic problems that they face. This course
introduces concepts and analytical techniques for understanding business environments and
firm resources, and for formulating and implementing strategies to compete successfully.
Special attention is paid to the fact that nowadays many firms have overseas operations and
sensitivity to cultural and institutional differences is essential for managing these operations.

The approach of the class is practical and problem oriented. The major part of the course will
involve applying concepts and analytic frameworks to the strategic issues that real-world
companies face. These issues are presented in case studies and in the form of several rounds
of simulation exercise. For the class to work well − and for you to benefit from it − attendance
and preparation for each class meeting is essential.

Learning Goals

By the end of the course, students should be able to


1. complete an external and internal analysis of a firm.
2. identify the strategic problems of a firm.
3. develop solutions to a firm’s strategic issues.
4. integrate skills acquired in finance, accounting, marketing, and MIS courses to create a
successful firm strategy.
5. write technical essays with appropriate organization and style.
6. gather, interpret and incorporate source materials in their writings with respect to the
context of strategic management.
7. write effective arguments directed toward a business audience.

Textbook and Course Materials

The basic textbook is: M. A. Hitt, R. D. Ireland, and R. E. Hoskisson, 2007. Strategic
Management, Competitiveness and Globalization: Concepts and Cases (Seventh Edition),
South-Western College Publishing. ISBN-10: 0324316941 / ISBN-13: 9780324316940.

Each student has to participate in a simulation exercise run by Capstone Business Simulation
Management Simulation Inc. (http: //www.capsim.com/). To participate in this simulation

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exercise, you need to register at the above web-site and pay a fee. Make sure that you enroll
in the right simulation session: simulation ID C20968 for cluster 1 students and C20969 for
cluster 2.

Lesson Schedule (subject to change)

Session 1 (Aug 20 and 22)


Introduction and administrative matters, such as group formation
Guidelines on case analysis

Session 2 (Aug 27 & 29)


Strategic management framework
Reading: HIH Chapter 1
Case: Putting on the Ritz
Simulation: Register for the simulation and read the team member’s guide

Session 3 (Sep 5)
Introduction to the simulation
Simulation: Go through the tutorials and demonstrations at the Capstone website

Session 4 (Sep 10 & 12)


Business ethics
Reading: Lecture handout
Case: H. B. Fuller and the Street Children of Central America
Simulation: Complete all three rounds of the solo simulation exercise

Session 5 (Sep 17 & 19)


The external environment
Reading: HIH Chapter 2
Case: A. G. Lafley: Innovating P&G’s innovations (HIH, case for written assignment)
Simulation: Group practice round due at 5:30 pm on Sep 16

Session 6 (Sep 24 & 26)


The internal environment
Reading: HIH Chapter 3
Case: De Beers: End of monopoly? (HIH, case for written assignment)
Simulation: Formal round 1 due at 5:30 pm on Sep 23

Session 7 (Oct 1 & 3)


Business-level strategy
Reading: HIH Chapter 4
Case: CQUAY Technologies Corp. (HIH, case for written assignment)
Simulation: Formal round 2 due at 5:30 pm on Sep 30

Session 8 (Oct 8 & 10)


Corporate-level strategy

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Reading: HIH Chapter 6
Case: Lucchetti (HIH, case for written assignment)
Simulation: Formal round 3 due at 5:30 pm on Oct 7

Session 9 (Oct 15 & 17)


Mid-term exam (on Oct 15) and recap of simulation experience
Simulation: Formal round 4 due at 5:30 pm on Oct 14

Session 10 (Oct 22 & 24)


International strategy
Reading: HIH Chapter 8
Case: The Case of Floundering Expatriate
Simulation: Formal round 5 due at 5:30 pm on Oct 21

Session 11 (Oct 29 & 31)


Cooperative strategy
Reading: HIH Chapter 9
Case: Shanghai Volkswagen: Implementing project management in the electrical
engineering division (HIH, case for written assignment)
Simulation: Formal round 6 due at 5:30 pm on Oct 28

Session 12 (Nov 5 &7)


Organizational structure
Reading: HIH Chapter 11
Case: FedEx Corp: Structural transformation through e-business (case for written
assignment)
Simulation: Formal round 7 due at 5:30 pm on Nov 4

Session 13 (Nov 12 & 14)


Simulation exercise reports and presentations
Written group reports are due on Nov 12

Session 14 (Nov 19 & 21)


Simulation exercise reports and presentations
Revision and preparation for final exam
Simulation: Individual COMP-XM

Session 15 (Nov 28)


Final exam

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Grading Policy

The final grade will be determined as follows:


Mid-term exam 15%
Final exam 30%
Individual written assignments 20%
Individual simulation 10%
Group simulation 25%
See details of grading and evaluation of the above course components below, and the
weighted average score calculated from the above components is converted into a grade as
follows:
Score Grade
97 – 100 A+
94 – < 97 A
90 – < 94 A-
87 – < 90 B+
84 – < 87 B
80 – < 84 B-
77 – < 80 C+
74 – < 77 C
70 – < 74 C-
67 – < 70 D+
64 – < 67 D
60 – < 64 D-
0 – < 60 F

Course and Instructor Policies

Individual written assignments


In order to develop competency in written communications, each student has to complete a
minimum of 15 pages of double-spaced written assignments in this course. Students must
choose two cases from the syllabus for producing a written case analysis. One of these case
write-ups must be submitted before the mid-term exam on Oct 15. Each case analysis should
be submitted at the beginning of the class in which the case is scheduled to be discussed. No
case write-ups will be accepted after the case has been discussed in class. Each case analysis
should be about seven to eight pages long (double spaced) and should answer the questions
related to the case. (Questions will be distributed later.) No make up cases will be available
for case write-ups.

Students must submit two copies of each case analysis. One of these will be graded by me or
by my teaching assistant, while the other will be graded by the writing tutor. Mark the copy
that goes to the writing tutor as a “WRITTEN ASSIGNMENT”. It is the student’s
responsibility to bring two copies of the paper to class and mark clearly which is for the
writing tutor. To avoid confusion, neither a single copy of a case write-up nor electronic
submissions will be accepted.

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Each case analysis will be evaluated separately based both on the content and on the quality
of writing. The content portion will be assessed by me based on how well the student has used
appropriate theoretical frameworks and concepts to answer the case questions. The quality of
writing will be assessed by the writing tutor based on the following three rubrics, each with a
maximum of 10 points. Failing papers will be rewritten with corrections by the students.
Rewritten papers must be submitted no later than one week after the graded papers are
distributed by me.

1. Students will write a firm case analysis draft using appropriate organization,
mechanics, & style.
a. Grading will utilize the following rubric:

Criteria 0 1 2 Total
Grammar Several grammar One or two No mistakes
errors errors
Spelling Multiple spelling One or two No spelling
errors errors errors
Word Choice Below average Good word Excellent word
word choices choices choices
Paragraph/Sentence Poor organization Good Very well
Organization and Flow organization organized
Professional Style Poor Acceptable Excellent
Total Points 10

b. Criteria for rewriting are as follows:


i. A paper scoring a zero in any of the five criteria must be
rewritten.
ii. For all papers totaling 6 or under, the paper must be rewritten.
iii. For all papers totaling 5 or under, the student must make an
appointment with the writing tutor.

2. Students will write a firm case analysis draft gathering, incorporating and
interpreting source material in their writing.
a. Grading will utilize the following rubric:

Criteria 0 1 2-3 Total


Citation of Missing citations Minor errors in Correct citation
Sources, In Text citations of sources
Works Cited Page Missing entries Minor errors Correct citation
Incorporation of Floating quotations Slightly choppy Seamless
quotations integration integration
Presentation of data Numerical data mixed Some use of Clear tables &
in paragraph form tables & charts charts
Total Points 10

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b. Criteria for rewriting are as follows:
i. A paper scoring a zero in any of the five criteria must be
rewritten.
ii. For all papers totaling 6 or under, the paper must be rewritten.
iii. For all papers totaling 5 or under, the student must make an
appointment with the writing tutor.

3. Students will write a firm case analysis draft using effective written arguments.
a. Grading will utilize the following rubric:

Criteria 0 1 2-3 Total


Thesis statement Thesis not Thesis stated but Thesis is clearly
identified not precisely stated
Evidence presented No supporting Support is vague Evidence logically
evidence supports argument
Argument Flow and Poor Good organization Very Well organized
Organization organization
Solutions proposed No solutions Solutions are vague Solutions are
offered specific
Total Points 10

b. Criteria for rewriting are as follows:


i. A paper scoring a zero in any of the five criteria must be
rewritten.
ii. For all papers totaling 6 or under, the paper must be rewritten.
iii. For all papers totaling 5 or under, the student must make an
appointment with the writing tutor.

When submitting a rewrite, the student should mark it clearly as a “REWRITE FOR THE
WRITING TUTOR.” Students with a passing score on the original writing portion can also
choose to rewrite their papers in order to further improve the writing scores. A new credit for
the writing portion will then be given based on the writing tutor’s reassessment of the revised
work.

Simulation exercises
There will be seven formal rounds in the group simulation exercise. Each round is equivalent
to a calendar year of the business. Whenever possible, class time will be given to the
simulation exercise, but in addition to this time, students are expected to meet outside class
for preparing weekly simulation decisions. To be effective team members, students should
prepare for team meetings by analyzing data in their particular area of responsibility. Group
decisions should be up-loaded to the Capstone website no later than the time specified in the
lesson schedule above.

The group grade for this simulation exercise will be based on the following:
• Group simulation performance

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• Written and oral report on the simulation exercise
The reports should describe the original strategy of the group, the rationale behind this
strategy, the change in the group’s strategy over time, the result of the simulation exercise and
what the group learned from the exercise. The oral report should not exceed 25 minutes, while
the written report should not be longer than six pages (double-spaced).

To avoid free riding, the group grade will only assigned to those team members who did a fair
share of work in the simulation exercise. The contribution of team members to the group
effort will be evaluated by each team member within the team and students who are
consistently evaluated by other team members as failing to make a fair contribution to the
team effort will receive a lesser grade.

Grading for individual COMP-XM simulation will be based on the result of simulation.

Exams
The mid-term exam will consist of multiple choice questions. Students should bring scan-tron
sheets and pencils for the exams. No make-up exams will be given! The final exam will be
open-book, handwritten and of a three-hour duration. It will be based on a case analysis. The
case will be distributed in the exam.

Final grade
Following the university’s guideline for grade distribution, the final grade of a student will be
based on the relative standing of his or her total credit points accumulated from all the
requirements as compared with the rest of the class. In compliance with the university’s
policy of confidentiality, no grade information will be transmitted via phone or e-mail.

Other policy issues


Throughout the semester, each student is expected to follow the university’s guideline on
student conduct with regard to cheating and other dishonorable behaviors. Severe
consequences can occur if such rules are not followed. The instructor also reserves the right to
deduct from a student’s individual class participation credit if the student has shown severe
non-constructive behavior in class (such as disrupting the class or abusing another individual),
in addition to other disciplinary actions.

If a student is absent or late to a class meeting, it will be his or her responsibility to catch up
with all the missed materials including announcement made while the student was absent. No
make-up exams or lectures will be given. It will also be the students’ responsibility to accept
any consequences that may result from absences. No late assignments will be accepted.

Finally, it is a student’s responsibility to read the syllabus thoroughly, and keep track of all
the important dates and requirements, as well as any subsequent changes to the syllabus.
Experience shows that answers to most questions that students ask can in fact be found in the
syllabus.

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Technical Support

If you experience any problems with your UTD account you may send an email to:
assist@utdallas.edu or call the UTD Computer Helpdesk at 972-883-2911.

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have rules and
regulations for the orderly and efficient conduct of their business. It is the responsibility of
each student and each student organization to be knowledgeable about the rules and
regulations which govern student conduct and activities. General information on student
conduct and discipline is contained in the UTD printed publication, A to Z Guide, which is
provided to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of
recognized and established due process. Procedures are defined and described in the Rules
and Regulations, Series 50000, Board of Regents, The University of Texas System, and in
Title V, Rules on Student Services and Activities of the university’s Handbook of Operating
Procedures. Copies of these rules and regulations are available to students in the Office of
the Dean of Students, where staff members are available to assist students in interpreting the
rules and regulations (SU 1.602, 972/883-6391) and online at
http://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-HOPV.html

A student at the university neither loses the rights nor escapes the responsibilities of
citizenship. He or she is expected to obey federal, state, and local laws as well as the
Regents’ Rules, university regulations, and administrative rules. Students are subject to
discipline for violating the standards of conduct whether such conduct takes place on or off
campus, or whether civil or criminal penalties are also imposed for such conduct.

Academic Integrity

The faculty expects from its students a high level of responsibility and academic honesty.
Because the value of an academic degree depends upon the absolute integrity of the work
done by the student for that degree, it is imperative that a student demonstrate a high standard
of individual honor in his or her scholastic work.

Scholastic Dishonesty, any student who commits an act of scholastic dishonesty is subject to
discipline. Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion,
the submission for credit of any work or materials that are attributable in whole or in part to
another person, taking an examination for another person, any act designed to give unfair
advantage to a student or the attempt to commit such acts.

Plagiarism, especially from the web, from portions of papers for other classes, and from any
other source is unacceptable and will be dealt with under the university’s policy on plagiarism
(see general catalog for details). This course will use the resources of turnitin.com, which
searches the web for possible plagiarism and is over 90% effective.

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Copyright Notice

The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted materials, including music and software.
Copying, displaying, reproducing, or distributing copyrighted works may infringe the
copyright owner’s rights and such infringement is subject to appropriate disciplinary action as
well as criminal penalties provided by federal law. Usage of such material is only appropriate
when that usage constitutes “fair use” under the Copyright Act. As a UT Dallas student, you
are required to follow the institution’s copyright policy (Policy Memorandum 84-I.3-46). For
more information about the fair use exemption, see
http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm

Email Use

The University of Texas at Dallas recognizes the value and efficiency of communication
between faculty/staff and students through electronic mail. At the same time, email raises
some issues concerning security and the identity of each individual in an email exchange.
The university encourages all official student email correspondence be sent only to a student’s
U.T. Dallas email address and that faculty and staff consider email from students official only
if it originates from a UTD student account. This allows the university to maintain a high
degree of confidence in the identity of all individual corresponding and the security of the
transmitted information. UTD furnishes each student with a free email account that is to be
used in all communication with university personnel. The Department of Information
Resources at U.T. Dallas provides a method for students to have their U.T. Dallas mail
forwarded to other accounts.

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any college-level
courses. These dates and times are published in that semester's course catalog. Administration
procedures must be followed. It is the student's responsibility to handle withdrawal
requirements from any class. In other words, I cannot drop or withdraw any student. You
must do the proper paperwork to ensure that you will not receive a final grade of "F" in a
course if you choose not to attend the class once you are enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Services and
Activities, of the university’s Handbook of Operating Procedures.

In attempting to resolve any student grievance regarding grades, evaluations, or other


fulfillments of academic responsibility, it is the obligation of the student first to make a
serious effort to resolve the matter with the instructor, supervisor, administrator, or committee
with whom the grievance originates (hereafter called “the respondent”). Individual faculty
members retain primary responsibility for assigning grades and evaluations. If the matter

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cannot be resolved at that level, the grievance must be submitted in writing to the respondent
with a copy of the respondent’s School Dean. If the matter is not resolved by the written
response provided by the respondent, the student may submit a written appeal to the School
Dean. If the grievance is not resolved by the School Dean’s decision, the student may make a
written appeal to the Dean of Graduate or Undergraduate Education, and the deal will appoint
and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is
final. The results of the academic appeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of
Students, where staff members are available to assist students in interpreting the rules and
regulations.

Incomplete Grade Policy

As per university policy, incomplete grades will be granted only for work unavoidably missed
at the semester’s end and only if 70% of the course work has been completed. An incomplete
grade must be resolved within eight (8) weeks from the first day of the subsequent long
semester. If the required work to complete the course and to remove the incomplete grade is
not submitted by the specified deadline, the incomplete grade is changed automatically to a
grade of F.

Disability Services

The goal of Disability Services is to provide students with disabilities educational


opportunities equal to those of their non-disabled peers. Disability Services is located in
room 1.610 in the Student Union. Office hours are Monday and Thursday, 8:30 a.m. to 6:30
p.m.; Tuesday and Wednesday, 8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.

The contact information for the Office of Disability Services is:


The University of Texas at Dallas, SU 22
PO Box 830688
Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)
disabilityservice@utdallas.edu

If you anticipate issues related to the format or requirements of this course, please meet with
the Coordinator of Disability Services. The Coordinator is available to discuss ways to ensure
your full participation in the course. If you determine that formal, disability-related
accommodations are necessary, it is very important that you be registered with Disability
Services to notify them of your eligibility for reasonable accommodations. Disability
Services can then plan how best to coordinate your accommodations.

It is the student’s responsibility to notify his or her professors of the need for such an
accommodation. Disability Services provides students with letters to present to faculty
members to verify that the student has a disability and needs accommodations. Individuals

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requiring special accommodation should contact the professor after class or during office
hours.

Religious Holy Days

The University of Texas at Dallas will excuse a student from class or other required activities
for the travel to and observance of a religious holy day for a religion whose places of worship
are exempt from property tax under Section 11.20, Tax Code, Texas Code Annotated.

The student is encouraged to notify the instructor or activity sponsor as soon as possible
regarding the absence, preferably in advance of the assignment. The student, so excused, will
be allowed to take the exam or complete the assignment within a reasonable time after the
absence: a period equal to the length of the absence, up to a maximum of one week. A student
who notifies the instructor and completes any missed exam or assignment may not be
penalized for the absence. A student who fails to complete the exam or assignment within the
prescribed period may receive a failing grade for that exam or assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of
observing a religious holy day] or if there is similar disagreement about whether the student
has been given a reasonable time to complete any missed assignments or examinations, either
the student or the instructor may request a ruling from the chief executive officer of the
institution, or his or her designee. The chief executive officer or designee must take into
account the legislative intent of TEC 51.911(b), and the student and instructor will abide by
the decision of the chief executive officer or designee.

Off-Campus Instruction and Course Activities

Off-campus, out-of-state, and foreign instruction and activities are subject to state law and
University policies and procedures regarding travel and risk-related activities. Information
regarding these rules and regulations may be found at the website address given below.
Additional information is available from the office of the school dean.
(http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm). These descriptions
and timelines are subject to change at the discretion of
the Professor.

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