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Ateneo Graduate School of Business Rockwell Center, Makati City STRATEGIC MANAGEMENT Ateneo ASMPH MBA Program Revised: May 2011 Strategic Management Ateneo ASMPH MBA Program May 2011 1 CENTRAL MANAGEMENT CLUSTER Ateneo Graduate School of Business Ateneo ASMPH MBA Program Rockwell Center, Makati City COURSE TITLE: COURSE CODE: COURSE DESCRIPTION: STRATEGIC MANAGEMENT STRAMA This course serves as the capstone course for the MBA Program.
It involves the utilization of knowledge and skills acquired by the students from the other MBA courses as well as their integration and application in the real world setting following the strategic management framework. The main areas to be covered include strategy formulation, strategy implementation and strategy review, evaluation and control. The framework is applicable to profit-oriented businesses, non-profit organizations, private enterprises and government entities.
In this course, students are expected to know not only about the strategic management process but also about the various analytical frameworks and strategy formulation tools that can aid managers in strategic decision-making and in building and sustaining competitive advantage. They will also be made to appreciate and understand the different strategy choices that are appropriate for specific industry and company situations. Other strategic management issues and concepts that are relevant to management in today’s global environment will likewise be studied, along with the management of ethical issues.
Students are also expected to have a deeper understanding and appreciation of the critical role and contribution of business enterprises to nation-building and poverty alleviation particularly in less developed countries such as the Philippines. Students will be made to apply and integrate their knowledge from this course and from the other MBA courses through group discussions/reports/presentations and the strategy paper that each student will be required to submit and defend before a panel. The learning methodologies to be used are aimed at developing the student’s strategic thinking capability.
COURSE OBJECTIVES: Upon completion of this course, students are expected to be able to: 1. Develop well-written mission and vision statements and corporate objectives that are ethically sound and that take into consideration corporate social responsibility and nation-building dimensions. 2. Identify the opportunities and threats facing an organization through the analysis of relevant external factors and assess the attractiveness of a business through the analysis of industry trends and competitive developments. Strategic Management Ateneo ASMPH MBA Program May 2011 3. Assess an organization’s internal situation, resources and capabilities and identify its strengths and weaknesses and the critical strategic issues that need to be addressed. 4. Use various analytical tools for setting strategic directions and formulating strategies, generate and evaluate alternative strategies and make the right strategy choices towards the attainment of the company’s objectives. 5. Learn the critical elements in effective strategy implementation, taking into consideration management and business functions perspectives. . Understand the key activities and concepts under strategy review, evaluation and control. 7. Appreciate other strategic management concerns relevant to today’s global business environment. 8. Identify and manage relevant ethical issues. 9. Understand the importance of corporate social responsibility and nation building as the organization moves towards increasing its shareholders’ value and long-term growth. 10. Develop their analytical and strategic thinking capability.
COURSE OUTLINE: Part II Introduction to the Course Session1 (4 hours) Course objectives Course requirements Review of The Strategic Management Process Mission Vision Objectives • Strategic Objectives • Financial Objectives • Hierarchy of Objectives Group assignments: Submit an analysis & recommended revised mission, vision and strategic & financial objectives your group’s assigned company. Prepare a PowerPoint presentation of your analysis & the recommended revised mission, vision, strategic & financial objectives. Read the STRAMA Paper Guidelines in the syllabus F.
David, Chapters 1, 2 & 5 (pages 165 – 167 only). The STRAMA Paper: Outline & Guidelines Strategic Management Ateneo ASMPH MBA Program May 2011 3 Part II Session 2 (4 hours) External & Industry Assessment • General environment • Industry/Competitive environment • Identifying industry’s functional & dominant features • Porter’s Five Forces of • Competitive Analysis F. David, Chapters 3 & 4 Group assignments: Submit an External Factor Evaluation (EFE) Matrix, a Competitive Profile Matrix (CPM) & an Internal Factor Evaluation (IFE) Matrix of your group’s assigned company.
Prepare a PowerPoint presentation of all the three matrices. F. David, Chapter 5 Group assignment: Identify the current strategies of the company assigned to your group & make an analysis. Prepare a PowerPoint presentation of your group’s analysis of the company’s current strategies. F. David, Chapter 6 Group assignment: Submit SWOT, SPACE, BCG, IE, Grand & QSPM matrices & recommended strategies for the company assigned to your group. Prepare a PowerPoint presentation of all the tools. Study Part 6 of the textbook – Strategic Management Case Analysis on page 378.
Review all topics learned from Session 1 (Strategic Management Process) up to Session 4 (Strategy Formulation). Review financial ratio analysis. Internal Assessment • Assessment of company performance Part II Session 3 (4 hours) Strategy Choices • Hierarchy of strategies • Types of strategies • Porter’s Generic strategies • Other strategies (JV, Partnering, Mergers, Acquisition, Outsourcing) Strategies for different industries and company situations Part II Session 4 (4 hours) Strategy Formulation Tools Matching Tools: SWOT, SPACE, BCG, IE & Grand Matrices Evaluating & selecting strategies Decision Tool: QSPM
Part II Session 5 (4 hours) Mid-term Exam (Case Analysis) Strategic Management Ateneo ASMPH MBA Program May 2011 4 Part II Session 6 (4 hours) Discussion of the Mid-term Exam Strategy Implementation • Pre-requisites to effective strategy implementation • Action/Departmental planning • Culture and change management • Other management issues F. David, Chapters 7 & 8 Group assignment: Submit Departmental Plans for the company assigned to your group. Prepare a PowerPoint presentation of the Departmental Plans.
Part II Session 7 (4 hours) Strategy Review, Evaluation & Control • Strategy evaluation framework • Performance measurement (Balanced Scorecard, others) • Characteristics of an effective evaluation system Other topics (Strategy Map, EVA, MVA, Ethical & Global Issues & Environmental Sustainability) Course Integration F. David, Chapter 9 Group assignment: Submit Balanced Scorecard for the company assigned to your group. Prepare a PowerPoint presentation of the Balanced Scorecard. REFERENCES: 1.
Required Textbook: David, Fred R. Strategic Management: Concepts and Cases, 13th edition Pearson Education Inc. 2011 2. Secondary References: Carpenter, Mason Andrew and Sanders, William Gerard Strategic Management: A Dynamic Perspective: Concepts And Cases Pearson/Prentice Hall 2007 Davenport, Thomas H, Leibold, Marius and Voelpel, Sven Strategic Management In The Innovation Economy: Strategy Approaches And Tools For Dynamic Innovation Capabilities Publicis 2006 Katsiooudes, Marios I.
Strategic Management: Global Cultural Perspectives For Profit And Non-Profit Organizations Elsevier Butterworth-Heinermann 2006 Thompson, Arthur A. Jr. and Strickland III, A. J. Strategic Management Ateneo ASMPH MBA Program May 2011 5 Strategic Management: Concepts, 11th edition International Edition, McGraw Hill Book Co. Thompson, Arthur A Jr, Strickland A J and Gamble, John E Crafting and Executing Strategy, Text and Readings, 17th Edition McGraw-Hill/Irwin 2010 3. Web References: http://www. quickmba. com/strategy/global/marketentry/ http://www. businessplans. org/ http://www. quickmba. om/strategy/levels/ Foreign market entry modes, exporting, licensing, joint venture and foreign direct investment Discussions about business planning Describes the role of strategy at the corporate level, business unit level and functional or department level of the firm Discusses the Porter’s Five Forces of Competitive Analysis Porter’s generic strategies: Cost leadership, Differentiation and Focus BCG growth-share matrix Porter’s diamond of national advantage Asian business strategy management research sites; archive, reviewed sites on Asia business management and strategy Research management group; offers lists of qualitative and quantitative research, roject management, strategic planning services; also provides research information newsletters Strategic management research cluster: Brings together a group of researchers who share a common interest and expertise in business strategy, marketing, international business and political economy Strategic management institute: Provides business and strategy development and conducts market research, industry analysis and business opportunity studies The global knowledge network for business, information, technology, and knowledge managers, professionals and entrepreneurs Site of strategic management society: Contains downloadable resource on various conferences pertaining to strategic management concern Contains various business and management sites including those on business periodicals Contains various articles on best practices on product development Site of business policy and strategy division of accounting and management. Contains working papers and writings in business policy and strategy: also provides link to other websites, organizations and journals ttp://www. quickmba. com/strategy/porter. shtml http://www. quickmba. com/strategy/generic. shtml http://www. quickmba. com/strategy/matrix. bcg/ http://www. quickmba. com/strategy/global/diamond http://www. apmforum. com http://www. sigmaresearch. com http://www. northampton. ac. uk http://www. s-m-i. net http://www. brint. com http://www. smsweb. org http://sites. krislyn. com/manage. htm http://www. roundtable. com/PDBPR? BPR-articles. html http://www. aom. pace. edu/bps/bps. html Strategic Management Ateneo ASMPH MBA Program May 2011 6 http://www. bestmanagement. com/ http://www. 2gc. co. uk/resource. asp http://www. themanager. org/index. htm ttp://www. themanager. org/knowledgebase/strategy/index. htm http://www. mplans. com/ot/features. cfm? id=155&ac=overture. sw otanalysis Site that aggregates content from over 200 trading organizations and contains extensive library organized into “authorized” key topics such as planning, budgeting and business intelligence Researches about balanced scorecard, strategic control and management, performance measurement and knowledge management Various printable resources on supply chain management, finance, strategy, management, IT, etc. Discusses forecasting, global business, growth, mergers & acquisitions, strategic alliances, strategic planning, etc.
Features marketing articles and SWOT analysis Provides topics about SWOT analysis: strengths, weaknesses, opportunities and threats Provides lectures on SWOT analysis Provides lectures and topics on developing your strategic SWOT analysis Describes how to conduct a SWOT analysis to build into your company’s marketing plan; studies strengths and weaknesses, opportunities and threats Discusses SWOT analysis Information on SWOT analysis and how to conduct one Offers manuals, lectures and topics regarding SWOT analysis Articles explore the roots of strategic management research and its transformation over the years http://www. demon. co. uk/mindtool/swot. html http://www. marketingteacher. com/Lessons/lesson_swot. htm http://www. austrainer. com/archives/1397. htm http://www. wilsonweb. com/wmt5/plan-swot. htm http://www. oolkit. cch. com/text/p02_4341. asp http://www. projectlevel. co. uk/business/swot. htm http://www. accaglobal. com/members/pdm/planning/swot/ http://www. findarticles. com/cf_dis/m4256/3_25/55307219/p1/art icle. jhmtl/ LEARNING STRATEGIES: The following methodologies and strategies will be utilized to achieve the learning objectives for the course: 1. 2. 3. 4. 5. Lectures Class discussions Workshop discussions (small groups) Group assignments/reports/presentations Mentoring/Consultations The facilitator may choose from among these learning methodologies and may use other learning tools as he/she sees fit depending on the make up of the class.
To facilitate the completion of the student’s STRAMA papers on time, the facilitator will provide consultation sessions to students as needed. Strategic Management Ateneo ASMPH MBA Program May 2011 7 COURSE REQUIREMENTS: 1. Attendance/Punctuality Students are expected to attend all class sessions and be on time. Each session will run for four (4) hours excluding a 15-minute break. Although attendance per se is not given a grade equivalent, it will have a bearing on the student’s participation in class activities. Students who miss a class session are responsible for the lessons taken up and are not excused from the work or assignments for that session. Only one (1) absence is allowed, beyond which the student will receive a “FAIL” grade. Habitual tardiness will be recorded.
Tardiness exceeding 30 minutes is equivalent to an absence. 2. Class Participation Each student is expected to actively participate in discussions by way of sharing one’s ideas and experiences relevant to the topic under discussion, giving relevant comments/remarks and asking questions whenever appropriate. In order to participate actively in the class discussion, students are expected to prepare and do the assignments prior to each session. 3. Group Reports/Presentation Students will be formed into small groups of preferably 5 members each. Each student is expected to actively participate and cooperate in the group discussions in carrying out and fulfilling the requirements for the group assignment.
The facilitator will give a grade for each group report/presentation and will require peer rating or forced ranking in giving the individual grades for the group assignments. Failure to submit group reports will result to a “Fail” grade. 4. Mid-term Examination Students will be given a mid-term exam in the form of a case analysis (to be done in class) to assess the extent to which each student has understood the concepts, analytical tools and learning in class. GRADING CRITERIA: The student’s grade for the STRAMA course will be determined as follows: Class activities – LEC Group Paper & Defense grade – Group Reports & Presentations – Mid-term examination STRAMA paper and Oral defense 20% 30% 20% 30% 100% Strategic Management Ateneo ASMPH MBA Program May 2011 8
The grading matrix is shown below: NAME: GROUP Mission Vision Objectives EFE matrix CPM IFE matrix Current Strategy Analysis SWOT SPACE BCG IE Grand Strategy Matrix QSPM Departmental Plans Balanced Scorecard TOTAL AVERAGE REPORTS GRADE COMPONENTS Group Reports Mid-term Exam LEC Paper & Defense STRAMA Paper & Defense TOTAL WEIGHT RATING 0. 30 0. 20 0. 20 0. 30 1. 00 WTD SCORE The final grade of the students will be given only after completion of their oral defense. ACADEMIC INTEGRITY POLICY: Each student is expected to abide by the standards of conduct and expectations of academic integrity that apply to academic undertakings. Academic dishonesty will not be tolerated and will result in the maximum penalty allowable as defined in the Student Guidebook, pp. 11-12. For the STRAMA paper, the student is especially cautioned against plagiarism. In understanding what constitutes plagiarism, please see the following sites: http://www. engl. niu. du/comskills/students/plagiarism/Plagiarism. html http://www. ehhs. cmich. edu/~mspears/plagiarism. html COMPONENTS PER MODULE/SESSION: In the succeeding section, the components of each session will be described in greater detail in terms of: • • • Learning Objectives Preparatory assignments Proposed classroom activities Note that for every STRAMA class, it is a must that the learning objectives for each topic are met. However, it is possible that the professor may vary or modify the specific sequencing of the topics and length of time spent for each, the nature of the assignments to be given for group requirements and the proposed activities and learning methodologies to be followed.
Strategic Management Ateneo ASMPH MBA Program May 2011 9 Session 1 Introduction Review of the Strategic Management Process Mission/Vision Statements & Objectives The STRAMA Paper: Outline & Guidelines Preparatory Assignments: 1. Read Chapters 1, 2 & 5 (pages165 – 167 only) of David’s book. 2. Prepare an analysis and recommended revised mission, vision and strategic and financial objectives of your group’s assigned company. Prepare a PowerPoint presentation of your analysis and recommendations. Learning Objectives: At the end of the session, students are expected to: 1. Understand the course objectives, requirements, grading criteria, rubrics and classroom rules. 2.
Know the definition of strategic management and the strategic management process, highlighting on the mission and vision statements and strategic and financial objectives. 3. Learn the requirements in the preparation, submission and oral defense of a Strategic Management paper. Proposed Activities: 1. The facilitator and students introduce themselves. 2. The facilitator will appraise the students on the course objectives, course requirements, grading criteria, rubrics and classroom rules such as punctuality, cell phone etiquette (should be in silent mode), maintaining silence while students are making presentations, etc. 3. The class will be divided into groups of preferably 5 members each. 4.
The facilitator will give a short review of the strategic management framework. 5. Groups will present the analysis and recommendations on their assigned company’s mission and vision statements and strategic and financial objectives. 6. The facilitator will explain the contents of the STRAMA paper, as well as the mechanics and criteria for the oral defense and grading. 7. The facilitator will review the assignments for the next session. Strategic Management Ateneo ASMPH MBA Program May 2011 10 Session 2 External & Industry Assessment Internal Assessment Preparatory Assignments: 1. Read Chapters 1, 2, 3, 4 & 5 (pages165 – 167 only) of David’s book. 2. Perform an external, industry and internal analysis.
Develop an External Factor Evaluation (EFE) Matrix, a Competitive Profile Matrix (CPM) and an Internal Factor Evaluation (IFE) Matrix for your group’s assigned company. Prepare a PowerPoint presentation of all the matrices. Learning Objectives: At the end of the session, students are expected to: 1. Understand the framework and process involved in external and industry analysis, focusing on the analysis of external factors that significantly affect the prospects and attractiveness of a specific industry. 2. Learn how to conduct an in-depth industry and competitor analysis through the: • Identification of the trends and various forces driving an industry (e. g. market size, buyer composition and characteristics, industry pricing, process, capacity, quality and technology, profitability and growth, etc. Application of Michael Porter’s Five Forces of Competitive Analysis framework. Identification of an industry’s critical success factors. • • 3. Be able to identify the opportunities and threats in the external and industry environment. 4. Be able to construct an EFE Matrix and a CPM. 5. Learn how to analyze a company’s performance in terms of its functions and key result areas such as: market share, revenues/sales growth, costs, profitability, etc. and through the use of various frameworks such as: David’s Functional Audit Checklist or other analytical methods. 6. Be able to identify the strengths and weaknesses of a company. 7. Be able to construct an IFE Matrix. 8.
Learn how to use the matrices in identifying strategic issues that the company will need to address for it to be able to accomplish its objectives and attain its vision. Proposed Activities: 1. Groups will present in PowerPoint their EFE, CPM and IFE matrices. 2. The facilitator will integrate the discussion in highlighting the use of the matrices for identifying strategic issues and for strategy formulation. 3. The facilitator will review the assignments for the next session. Strategic Management Ateneo ASMPH MBA Program May 2011 11 Session 3 Strategy Choices Preparatory Assignments: 1. Read Chapter 5 of David’s book. 2. Prepare a group report and a PowerPoint presentation on the analysis of your assigned company’s current strategies.
Learning Objectives: At the end of this session, students are expected to: 1. Understand the hierarchy of strategies. 2. Learn the strategy choices as classified by David: Intensive, Integration, Diversification and Defensive strategies. 3. Understand Michael Porter’s generic strategies: Cost Leadership, Focus and Differentiation. 4. Know the appropriate strategies for different industry and company situations as elucidated by Thompson and Strickland. Proposed Activities: 1. The facilitator will give a short lecture on the hierarchy of strategies, David’s classification of strategies, Porter’s generic strategies and appropriate strategies for different industry and company situations. 2.
Groups will present in PowerPoint the analysis of the current strategies of the company assigned to them. 3. The facilitator will integrate the discussion on all the presentations. 4. The facilitator will review the assignments for the next session. Strategic Management Ateneo ASMPH MBA Program May 2011 12 Session 4 Strategy Formulation Tools Preparatory Assignments: 1. Read Chapter 6 of David. 2. Prepare SWOT, SPACE, BCG, IE, Grand & QSPM matrices of your group’s assigned company. Prepare a Power Point presentation of all the matrices. 3. Prepare a PowerPoint presentation on your company’s recommended strategies. Learning Objectives: At the end of the session, students are expected to: 1.
Understand David’s strategy formulation framework from the Input and Matching stages to the Decision stage. 2. Learn how to develop SWOT, SPACE, BCG, IE, Grand & QSPM matrices. 3. Be able to make strategy recommendations for a company. Proposed Activities: 1. Groups will present their company’s SWOT, SPACE, BCG, IE, Grand & QSPM matrices. The facilitator and the class will give their comments. 2. Groups will present their company’s recommended strategic and financial objectives for the next three (3) years) and their recommended strategies. 3. The facilitator will integrate the learning on all the presentations made. 4. The groups will submit all their matrices to the facilitator. 5.
The facilitator will review the assignments for the next session. Strategic Management Ateneo ASMPH MBA Program May 2011 13 Session 5 Mid-Term Exam Preparatory Assignments: 1. Read Part 6 of the textbook – Strategic Management Case Analysis on pages 378 390. 2. Review all topics learned from Session 1 (Strategic Management Process) up to Session 4 (Strategy Formulation). 3. Review financial ratio analysis. 4. Bring textbook, pen or pencil, pad papers, highlighters and calculator. Learning Objectives: 1. Through this mid-term case analysis exercise, the facilitator expects to get feedback on the progress and assurance of learning of the students. Proposed Activities: 1.
Students will do a strategic management case analysis in class using the whole four hours. Textbook may be opened. 2. Students can leave individually as soon as they are finished. Strategic Management Ateneo ASMPH MBA Program May 2011 14 Session 6 Strategy Implementation Preparatory Assignments: 1. Read Chapters 7 & 8 of David. 2. Develop Departmental Plans for your assigned company. Prepare a Power Point presentation for the Departmental Plans. Learning Objectives: At the end of the session, students are expected to: 1. Learn about the prerequisites to successful strategy implementation. 2. Understand the steps and components involved in action/departmental planning. 3.
Know what change management activities are needed to align the organization with strategies. Proposed Activities: 1. The facilitator will return the mid-term exam papers to the students and give feedback on the results and elucidate on his findings. 2. The groups will present their Departmental Plans. 3. The facilitator will integrate the learning on all the presentations made. 4. The facilitator will review the assignments for the next session. Strategic Management Ateneo ASMPH MBA Program May 2011 15 Session 7 Strategy Review, Evaluation & Control Other Topics Course Integration Preparatory Assignments: 1. Read Chapter 9 of David. 2. Read the article on the Balanced Scorecard by Kaplan and Norton at the end of this syllabus. 3.
Develop a Balanced Scorecard for your assigned company. Prepare a Power Point presentation for the Balanced Scorecard. 4. Research on the topics: Strategy Map, Economic Value Added (EVA), Market Value Added (MVA), Ethical and Global Issues and Environmental Sustainability in Strategic Management. Learning Objectives: At the end of the session, students are expected to: 1. Understand strategy review, evaluation and characteristics of an effective evaluation system. control framework and the 2. Learn about performance measurement as an important component of strategy evaluation. Know some of the performance measurement systems such as the Balanced Scorecard. 3.
Learn the concepts and principles behind the topics: Strategy Map, Economic Value Added (EVA), Market Value Added (MVA), Ethical and Global Issues and Environmental Sustainability in Strategic Management. Proposed Activities: 1. The groups will present their company’s Balanced Scorecard. 2. The facilitator will integrate the learning on all the presentations made. 3. The facilitator will give a short lecture on the topics: Strategy Map, Economic Value Added (EVA), Market Value Added (MVA), Ethical and Global Issues and Environmental Sustainability in Strategic Management. 4. The facilitator will give an integrative summary of Strategic Management. Strategic Management Ateneo ASMPH MBA Program May 2011 16