• Business Strategy MGMT562 Class Assignment

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    • Abstract: Business Strategy MGMT562 Class AssignmentClass web page: http://www.sba.pdx.edu/faculty/daveg/course.htmlStrategy-in-the-News: (assignment dates to be made in class)Week #1 -Strategic Introduction - Set expectations for course. Go through class mechanics, etc.

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Business Strategy MGMT562 Class Assignment
Class web page: http://www.sba.pdx.edu/faculty/daveg/course.html
Strategy-in-the-News: (assignment dates to be made in class)
Week #1 -Strategic Introduction - Set expectations for course. Go through class mechanics, etc.
Assignment for Class #1
• Download syllabus and slides from class website
• Purchase text, articles and cases (listed in syllabus)
• Reading: Barney text (Ch 1)
• Handout: Gerstner, Steely-Eyed Strategies; Mission
Major Learning Points
• Gain familiarity with strategy as a concept – what it is, and what it is not
• Gain familiarity with business models.
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Business Strategy MGMT562 Class Assignment
Week #2 - Strategic Introduction & External Analysis
Major Learning Points
• Discuss what is business strategy
• Introduction to external analysis
• Gain practice in case analysis
• What is Strategy?
• Barney, Chapter 3, 4 (Evaluating External Threats, Evaluating External Opportunities)
Particularly important: Sections 3.2 (Five Force Model of Environmental threats), 4.1
(Opportunities and Industry Structure)
Case Discussion (BMG) – prepare, but do not hand-in
1. During the last century, a handful of major record companies tended to dominate the music
industry. Why is that? Use the Five-Forces framework to characterize the industry.
2. Will major record companies continue to dominate the business following the advent of the
Internet? Make sure that you identify opportunities and threats when considering the
analysis. Make sure that you identify opportunities and threats when considering the
application of the Internet to the five forces analysis from Q1.
3. What would you recommend to Zelnick and Conroy? Specifically outline the recommended
strategic actions including (a) Internet strategy, (b) organizational approach to the Internet
(separate organization or integrated), approach to technology partners?
Week #3 – Internal Analysis
Major Learning Points
• Understand notion of core competency, with associated strengths and weaknesses.
• Gain more practice thinking about industry structure.
• Barney, Chapter 5 (Evaluating Firm Strengths and Weaknesses) Particularly important:
Sections 5.2 (Analyzing Organizational Strengths and Weaknesses), 5.3 (Applying the
VRIO Framework), 5.4 (Implications of the Resource-based View)
• Core Competence of the Corporation
Case Discussion - Apple (group assignment, 3 people)
1. What do you think is BMG’s core competency in 40 words or less? Why? Does it pass the (3)
part core competency test from Prahalad’s article?
2. Dissect and analyze the dynamics of the PC industry, comparing the early industry structure
with the dynamics in a more current time frame. Are these dynamics favorable or problematic
for Apple? Why?
3. Use the VRIO (value chain) framework to develop your analysis.
• What do you think are some of Apple’s strengths?
• What are Apple’s weaknesses?
• Describe Apple’s core competency in 40 words or less.
This link is an interesting 1 hour video of the history of Apple. Purely optional.
For this case, focus on the PC Industry (not the consumer electronics).
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Business Strategy MGMT562 Class Assignment
Week #4 - Business Strategies
Major Learning Points
• Gain an understanding of core business strategies of cost leadership, vertical integration
and differentiation.
• Be able to develop strategies from a SWOT.
• Be able to evaluate strategies.
• Barney, Chapter 6 Vertical Integration. Read chapter except 6.4 Organizing to
Implement Vertical Integration
• Barney, Chapter 7 Cost Leadership
• Barney, Chapter 8 Product Differentiation. Read chapter, except skim 8.4 Organizing to
Implement Product Differentiation
Case Discussion – Mondavi (individual, Mondavi or Apple #2 required to submit)
1. Evaluate the structure of the global wine industry? Why are large alcoholic beverage firms
Diageo, Foster’s and Allied Dominique entering the premium wine business? What
advantages or disadvantages does Mondavi have relative to these firms?
2. What opportunities and threats exist for Robert Mondavi?
3. Evaluate the strength and weaknesses of Mondavi. What do you think is the core competence
of Mondavi (in 25 words or less)?
4. Develop a Strategy SWOT to articulate your recommended strategy options for Mondavi.
Week #5 –Strategy & Uncertainty – focus on risk, flexibility
Major Learning Points
• Apply and practice strategy analysis (Apple case)
• Expand thinking on differentiation through Blue Ocean Strategy
• Introduce some tools and perspectives that can be used in conjunctions with strategies to
manage risk and uncertainty (scenario planning in particular)
• Blue Ocean Strategy
• Barney, Chapter 9.2 (Defining Flexibility and Options)
• Strategy under Uncertainty
Case Discussion – Apple #2 (individual, Mondavi or Apple #2 required to submit)
1. Evaluate Apple’s strategies since 1990 pursued by Sculley, Spindler, Amelio, and Jobs.
What were the strategic initiatives? The logic behind the moves? Success or failure?
2. Has Steve Jobs finally solved Apple’s long-standing problems with respect to the MacIntosh
business? You will need to state what you believe is the “long standing problem.”
3. How do you think the current iPOD/iPhone business strategies compare to Apple’s past?
What’s the same and what’s different?
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Business Strategy MGMT562 Class Assignment
Week #6, Diversification; Collusion & Government Effects on Strategy
Major Learning Points
• Gain practice analyzing uncertainty/risk in a large strategic project decision (A380 case)
• Introduce some concepts of corporate strategy (vs. business strategy).
• To learn about how government agendas exert policy and influence a firm’s strategy
• To learn about antitrust policy, and its effects on strategy
• Barney, Ch 12.1-12.2 (Corporate Diversification), Ch10.1 to 10.3 (Tacit Collusion).
o Note: not the chapter on “Organizing to Implement Corporate Diversification”
• Antitrust and the Consumer (I will email this to you)
• The Fly on the Wall has Been Bugged (I will email this to you)
Assignment (group, required): Should Airbus make the “big bet” to develop the A380?
This includes a quantitative analysis (excel) and write up. The financial analysis should include
an NPV and break even analysis including a sensitivity analysis around your key assumptions
(like sales) and uncertainties. You can assume that the development time for the A380 takes about
6 years, and that Airbus will spend $10-12B during this time. The market demand and the pricing
can be derived from the excel file that I send. You can get more detailed data from the Airbus and
Boeing web sites if you wish (though you do not need to). Make other assumptions as necessary.
You can assume after tax net income represents cash flow if you wish.
The 2 page write up should include (a) key assumptions and uncertainties, (b) a description of 2-3
scenarios that you use to drive your analysis, (c) sensitivity analysis, (e) financial results
including break-even and NPV, (f) your recommendation and (g) your key learnings (with respect
to strategy).
Week #7 - Topic – International
Major Learning Points
1. Apply value chain analysis, antitrust/collusion & government involvement to strategy (De
2. Gain familiarity with the different opportunities, barriers and entry options to create
economic value through International strategies.
3. Gain familiarity with organizational roles in International Strategies
• Case: De Beers
• Barney, Chapter 15 (International Strategy)
• HBR Article: Strategies that Fit Emerging Markets
Case Discussion - DeBeers – (individual, DeBeers or Daewoo required to submit)
1. Who writes the rules for the International diamond market? How are they enforced? Hint:
look at the value chain
2. What is De Beers core competency in 40 words or less?
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Business Strategy MGMT562 Class Assignment
3. How has DeBeers structured its relationship with US diamond dealers and the US
government? Why might this be a problem looking forward? Hint: understand the
financials and trends in the exhibits.
4. Should the US government spend a lot of time dealing with antitrust enforcement against
DeBeers? Why or why not?
5. Recommendations: What should Nicky Oppenheimer do? Why?
Week #8 - Collaboration - Alliances and M&A
Major Learning Points
• Develop a working knowledge of the various forms of alliances and M&A
• Understand and differentiate between alliance “tools” and their advantages/disadvantages
• Apply alliance and strategy concepts in an emerging market setting (Daewoo)
• Barney, Chapter 11, 14.1 (Strategic Alliances, and Mergers and Acquisitions)
• Strategy as Ecology; When to Ally and When to Acquire
Case Discussion – Daewoo (individual, DeBeers or Daewoo required submit)
1 How did Daewoo’s strategic alliance with General Motors end in 1992? How did Daewoo’s
globalization strategy in the automobile sector evolve from this experience? What was that
2 What seems to be the strengths driving Daewoo’s success to date? What is Daewoo’s core
competency in 40 words or less?
3 Why are emerging markets so important to Daewoo’s strategy? What is attractive (and
unattractive) to Daewoo about entry into Uzbekistan? Hint: look at the entry into Uz and
prior class on international strategy
4 With respect to the Daewoo-Uz alliance, what does Daewoo get out of it? What does the Uz
government get out of it? In other words, what are the “value drivers” for each?
5 Evaluate how the venture is performing? This should link back to criteria and goals. What
would you recommend to the management in Uzbekistan? Hint: look at actual operating
results versus goals in questions 3/4.
Week 9 – Sustainability
Major Learning Points
• To think about how sustainability is connected to strategy (developing field)
• Gain a better understanding of strategy via guest speaker
• Strategy and Society
Case Discussion – Patagonia
1. What is Patagonia’s strategy? What specific activities does Patagonia employ that
support the customers’ WTP (“willingness to pay”).
2. Complete a financial analysis to indicate whether or not you believe Patagonia’s
strategy is working. Can the “extra” costs be justified and what are they? This
analysis should be related to question #1 and should use data from the financial
statements, as well as more detailed case data on Patagonia’s unique activities.
3. Develop a Strategy SWOT.
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Business Strategy MGMT562 Class Assignment
4. What strategies should Patagonia pursue? Articulate 3-5 strategies and 1-2 tactics for
each strategy.
Class discussion (do not write-up) - how does Patagonia’s view success compare with
that of a traditional public company? Could Patagonia be a public company and maintain
the unique attributes? Why?
Week 10 – Course Wrap-up and Strategic Management
• To wrap-up the key points of the course
• Connect the various elements of strategy discussed into a context of strategic management
• Gain a better understanding of strategy via guest speakers
• To help improve the course via a course critique discussion
Final exam (90 minutes)
• In class, you will get 2-3 questions on the Boeing case. The topics will be similar to typical
case questions that you have gotten throughout the semester.
• You can bring in any class materials, or any prepared material/analysis.
• This is an individual assignment, to be done in Word (like the case assignments).
• Like the cases, I strongly encourage you to use business writing tools such as bullets, tables
and drawings. Be concise.
• This will be done on a computer – either in the classroom, or anywhere on campus.
• You must email me the exam document by the end time. Late submittals will not be
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