BUSINESS STRATEGY

Spring 2012 Monday 9 12h Room U91

Purpose Business Strategy is a core course in the Strategy and Organization master and its focus is on how to apply strategy theory within firms. The aim of the course is to provide students with basic and advanced conceptual frameworks of business strategy. The course combines both an introduction into conceptual aspects of strategic management and the practical application of these concepts in the context of a business firm. Readings therefore include scholarly journal articles as well as practitioner articles. The course heavily relies on business case studies to illustrate the strategic context of firms and to provide an opportunity to apply strategy theory to real world problems.

Content Key areas The course is initiated with the question of how value can be created and, more importantly how value can be converted into competitive advantage of the firm. This leads to the general issue of how firms can build and sustain competitive advantage. The course will also discuss new and emerging concepts developed around the notions of complementarities and fit. This discussion includes attributes of changing environments which provides students with concepts and ideas for analyzing and adapting towards dynamic environments.

Goals description The aim of the course is that students, by participation in this course, can understand, evaluate and apply current state of the art research in the field of applied strategy, compare and relate latest research findings and frameworks in strategy, develop skills relevant for problem solving in a strategic setting within firms, use the theories discussed in this course to analyze and reflect strategic topics in a master thesis, in particular in empirical settings such as case studies, examine and solve strategic problems in a managerial context.

Form of instruction 3 hours weekly in 15 weeks; case studies may be bundled in half day lectures. Lectures, case studies, student presentations, class discussion and exam in English.

Form of examination Five hour written examination. All materials allowed. External, 7 step scale.

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Examination conditions Before taking the exam the student has to pass one assignment that is given in the beginning of the semester. The assignment must be passed before the final exam. The assignment is written in a group but is evaluated individually. The group members must prepare a statement that outlines each individuals contribution to the assignment. The assignment is evaluated internally on a pass/fail basis. Each student will get up to three attempts to pass the assignment before the final exam. The purpose of the assignments is to test the students analytical skills in the course subject.

Lecturers Stephan Billinger (SBI) Nils Stieglitz (NST)

Department of Marketing & Management Department of Marketing & Management

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COURSE OVERVIEW N O. 1. DATE THEME LEC.

2. 3. 4. 5. 6. 7.

8. 9.

10. 11.

12.

MODULE 1: PREVIEW 06.02.12 Course introduction and logistics SBI Case: Robin Hood (will be provided in class) MODULE 2: TOOLS OF BUSINESS STRATEGY ANALYSIS 13.02.12 The Concept of Strategy (chapter 1) SBI Case: Madonna 20.02.12 Goals, Values, and Performance (chapter 2) SBI Case: Starbucks 27.02.12 Industry Analysis (chapter 3) SBI Case: US Airline Industry in 2009 05.03.12 Competitive Interactions (chapter 4) SBI Case: Ford Motor Company in 2009 12.03.12 Resource Analysis and Development (chapter 5, 6) SBI Case: Wal Mart Inc., 2009 19.03.12 Strategy Implementation (chapter 17) SBI Case: GE and Jeff Immelt 2009 MODULE 3: ANALYSIS OF COMPETITIVE ADVANTAGE 26.03.12 Nature & Sources of Competitive Advantage (chapter 8) NST Case: AirAsia 02.04.12 Cost Advantage & Differentiation advantage (chapter 9, 10) SBI Case: Harley Davidson, January 2009 MODULE 4: BUSINESS STRATEGIES IN DIFFERENT CONTEXTS 16.04.12 Industry Evolution & Strategic Change (chapter 11) NST Case: Eastman Kodak 23.04.12 Technology based Industries and the Management of NST Innovations (chapter 12) Case: Rivalry in Video Games 30.04.12 Strategy making in mature industries (chapter 13) NST Case: New York Times 07.05.12 14.05.12 Strategy making in small business firms Case: tba Strategic decision making in action Case: tba MODULE 5: WRAPPING UP Wrap up & preparation for the examination NST NST

13. 14.

15.

21.05.12

NST

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READING LIST
Note: Grant 2010 Contemporary strategy analysis refers to the textbook for the entire course. Unless otherwise stated, the cases are from this book. References: Robert Grant, Contemporary Strategy Analysis (combined text and cases), John Wiley & Sons, Inc., 7th edition, 2010.

MODULE 1: PREVIEW No. 1: Course introduction and logistics Ghemawat, P. 1991. Commitment, Ch. 4 & 5, pp. 53 107. Christensen, Clayton M.; Raynor, Michael E. 2003. Why Hard Nosed Executives Should Care About Management Theory. Harvard Business Review, Sep2003, Vol. 81 Issue 9: 66 74. Minicase: Robin Hood (will be provided in class)

MODULE 2: TOOLS OF BUSINESS STRATEGY ANALYSIS No. 2: Classic strategic thought in management Grant 2010. Chapter 1 Ghemawat, Pankaj. 2002. Competition and Business Strategy in Historical Perspective. Business History Review 76: 37 74. Case: Madonna No. 3: Goals, Values, and Performance Grant 2010. Chapter 2 Porter, Michael E.; Kramer, Mark R. 2006. Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 2006, Vol. 84 Issue 12, p78 92. Case: Starbucks

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No. 4: Industry Analysis Grant 2010. Chapter 3 Porter, Michael E. 2008. The five competitive forces that shape strategy. Harvard Business Review, Vol. 86 Issue 1, p78 93 Case: US Airline industry in 2009 No. 5: Competitive interactions Grant 2010. Chapter 4 Brandenburger, A.M. and B.J. Nalebuff 1995. The Right Game: Use Game Theory to Shape Strategy. Harvard Business Review: 73 (July August), pp. 57 73.

Case: Ford Motor Company in 2009

Wiggins RR, Ruefli TW. 2002. Sustained competitive advantage: Temporal dynamics and the incidence and persistence of superior economic performance. Organization Science: Vol. 13 Issue 1, p.82 105 (optional) No. 6: Resource analysis and development

Grant 2010. Chapter 5 and 6 Barney J. 1991. Firm resources and sustained competitive advantage. Journal of Management: Vol. 17 Issue 1: p.99 120. Case: Wal Mart Inc., 2009. Peteraf, M.A. 1993. The Cornerstones of Competitive Advantage: A Resource Based View, Strategic Management Journal: Vol. 14, p. 179 191 (optional)
No. 7: Strategy Implementation

Grant 2010. Chapter 17

Kaplan, R.S. and D. P. Norton 1996. Linking the Balanced Scorecard to Strategy. California Management Review: 39, pp. 53 79. Case: General Electrics and and Jeff Immelt 2009

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MODULE 3: ANALYSIS OF COMPETITIVE ADVANTAGE

No. 8: The Nature and Sources of Competitive Advantage Grant 2010, Chapter 8 Kim, W. Chan, Mauborgne, Rene. 2005. Blue Ocean Strategy: From Theory to Practice California Management Review, Spring2005, Vol. 47 Issue 3: 105 121 Lieberman, M., D. Montgomery 1998. First Mover (Dis)Advantages: Retrospective and Link with the Resource based View, Strategic Management Journal 19: 1111 1125 (optional). Case: AirAsia

No. 9: Cost and Differentiation Advantage

Grant 2010, Chapter 9 and 10 Ghemawat, P. 2001. Strategy and the Business Landscape, Prentice Hall: Upper Saddle River, pp. 61 72 (available on Blackboard) Case: Harley Davidson, January 2009

MODULE 4: BUSINESS STRATEGIES IN DIFFERENT CONTEXTS

No. 10: Industry Evolution and Strategic Change Grant 2010, Chapter 11 Christensen, Clayton M.; Raynor, Michael; Verlinden, Matt. 2001. Skate to Where the Money Will Be. Harvard Business Review, Nov2001, Vol. 79 Issue 10: 72 81 Lenox, Michael, Scott Rockart, & Arie Lewin. 2007. Interdependency, Competition, and Industry Dynamics. Management Science. 53(4): 599 615 (optional). Case: Eastman Kodak

No. 11: Technology based Industries and the Management of Innovations

Grant 2010, Chapter 12 Shapiro, Carl; Varian, Hal R. 1999. The Art of Standards Wars. California Management Review, Winter99, Vol. 41 Issue 2: 8 32

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Henderson, Rebecca M. and Kim B. Clark. 1990. Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms. Administrative Science Quarterly 35: 930 (optional). Case: Rivalry in Video Games

No. 12: Strategy making in mature industries

Grant 2010, Chapter 13 Courtney, Hugh, Jane Kirkland, and Patrick Viguerie. 1997. Strategy Under Uncertainty. Harvard Business Review (November December): 6779. del Sol, Patricio; Ghemawat, Pankaj. 1999. Strategic Valuation of Investment under Competition. Interfaces, Nov/Dec99, Vol. 29 Issue 6: 42 56 Case: New York Times

No. 13: Strategy making in small business firms

Case: TCR (will be made available ob Blackboard)

No. 14: Strategic decision making in action

No readings required

MODULE 5: WRAPPING UP
No. 15: Wrap up & preparation for the examination Sample exam case will be provided in class

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