MBA Programme

http://www.mba.itb.ac.id
INSTITUT TEKNOLOGI BANDUNG

MM5012 Business Strategy

Reguler Class47C

JANUARY 2013

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT INSTITUT TEKNOLOGI BANDUNG http://www.sbm.itb.ac.id/mba

FACILITATOR PROFILES
Dr. Ir. Mohamad Toha Nick Name: Toha E-mail: mtoha2000@yahoo.com Phone: 08157003255 Mohamad Toha was graduated from Industrial Engineering- Institute of Technology Bandung (ITB) in 1981. After 2 years working in PT INTI (Persero), he was trained (9 months) on Planning and Data Processing System in Siemens AG and DV Schuele West Germany. He completed his Master degree in 1991 from Industrial Engineering and Management Institute of Technology Bandung. He joined many important courses and conferences i.e. 4th intake of SUSPIM SUSGAB LEMHANAS (4 month extensive leadership course) in 1993, Top Executive Leadership Course (the executive course was facilitated by BPIS and GE) in 1995, Corporate Planning Seminar (Kuala Lumpur) in 1997. He completed his PhD degree from Industrial Engineering- Institute of Technology Bandung in 2004. Mohamad Toha started his career in 1981 as a staff in Planning Department of PT INTI. In five months he was appointed as PPH (Pejabat Pelaksana Harian) Department Head of Planning. He also involved in planning and preparing the development of Digital Switching factory in 1982. He was a Department Head of Production Information System in 1987 and Department Head of Management Information System in 1989. He was appointed as Manufacturing General Manager of PT INTI in August 1991, as General Manager of Planning in 1994, Senior Strategic Planner in 1996, as Corporate Secretary in 1997 and as Director of PT INTI-Landas VMedia a subsidiary company of PT INTI in VBI net TV technology in 2001. Outside the structural job in PT INTI, he was also appointed as a Coordinator of Counterpart Team to AT Kearney Consultant on INTI Restructuring Project (1997); a Project Coordinator of New Product Development Process and Supply Chain in 1999; a team member of BPIS restructuring in 1996. He was also a founder of Yayasan Widya Bakti INTI (YWBI) in 1998. In 2003 he was a President Director of PT QOLSA SMARTSYST an IT company with focus on traffic management system, CCTV integration, video conferencing, e-learning, e-banking, security system, data base application and other specific area. He joined with SBM ITB as part-time lecturer in 2005 and he was appointed as a Director of Consultancy and Continuing Education (CCE) SBM ITB in Sampoerna SBM ITB Jakarta Campus in 2006 to 2009. Since 2005 Mohamad Toha is a lecturer of Corporate and Business Strategy of MBA ITB, consultant and instructor of many training subjects mostly on strategy, strategy execution, leading change, knowledge management, business acumen and leadership. Page 1 of 17

He was a member of Board of Facilitator (BOF) of ANTAM Leadership Development Program (ALDP) in 2007-2008, ANTAM Basic Leadership Development Program (ANTAM-BLDP) in 2009-2010, ANTAM Middle Leadership Development Program (2009-2010), ANTAM Senior Leadership Development Program (2009-2010), a member of Core Facilitator of BRI-Leadership Development Program (BRI-LDP) batch-1 and batch-2 in 2008-2009, and a member of Core Facilitator of Krakatau Steel Leadership Development Program (KS-LDP) in 2009-2010. He was a Consultant Team Leader of Corporate Long-term Plan of PT JAMSOSTEK in 2008, a Head of Revitalization Strategy Taskforce of STEKPI Transformation Project in 2010, Human Resource Consultant of PT Gas Negara (Persero), Tbk. in 2010, Lead Consultant of Development Study of Bank Note Processing System in Bank Indonesia 2011, Vice Lead Consultant of DIKLAT Management System of PT Perusahaan Gas Negar (Persero), Tbk. 2012.

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Contents
No Description
1 Vision and Mission of MBA ITB ..

Page
4

Learning Goals of MBA ITB ...

Learning Goals of This Course .

Learning Outcomes of This Course ..

The Course Structure .

The Course Plan ..

Grading ..

11

Student Guidance ..

12

Main References..

14

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1. Vision and Mission of MBA ITB

Vision:

To be A World Class Program of Master and Business Administration that Creates Ethical and Entrepreneurial Leaders Mission: To educate and develop future leaders in business To develop sustainable education program for building human resource capacity needed for enhancing industry competitiveness in Indonesia

2. Learning Goals of MBA ITB

In General, The MBA ITBs learning goal is to develop students to have the following characteristics: A Strong competence in business and technology-based management as well as decision making capabilities as demonstrated by business leaders in the world. An ethical leadership and professional mindset An entrepreneurial spirit both as professionals and as entrepreneurs. Ability to make decisions based on human values in a systemic and integrated so as to meet the needs of the community. There are three programs at MBA ITB Bandung campus with specific learning goals as follows: A. Young Professional The learning goal of this program is to build business sensitivity and business administration knowledge and skills required to start career at managerial level. B. Creative and Cultural Entrepreneurship (CCE) The learning goal of this program is to teach students about doing business in creative and culture sectors and how to manage their new business in these areas.

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C. Executive MBA The learning goal of this program to improve students agility in decision making and to develop a holistic view of business which enables them to lead a business project on a higher level effectively in todays business environment.

3. Learning Goals of This Course

This course is for Creative and Cultural Entrepreneurship (CCE). The goal of this course is to develop the following competences: a. Knowledge about System Thinking and Strategic Management, b. Knowledge about corporate governance and business ethics and their impact on strategic decision making, c. Ability to identify, analyze and diagnose internal and external organizational environment, d. Ability to formulate the business, corporate and functional strategy, and companys policy, e. Ability to implement the strategy, f. Ability to evaluate and control the strategy, and g. Ability to formulate, implement and evaluate and control the strategy in Entrepreneurial Ventures and Small Businesses.

4. Learning Outcomes of This Course

After completing this course, participants will able to develop, implement and control the business and corporate strategy in the organization. It includes (1) identifying the influence of corporate governance and ethic on strategic decision making (2) identifying, analyzing and diagnosing internal and external organizational environment, (3) formulating the business, corporate and functional strategy, and companys policy, (4) implementing the strategy, (5) evaluating and controlling the strategy implementation and (6) formulate, implement and evaluate and control the strategy in Entrepreneurial Ventures and Small Businesses.

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5. The Course Structure

The course structure of competencies building is figured as follows:

Participant have ability to formulate, implement and evaluate and control the strategy in Entrepreneurial Ventures and Small Businesses

Participants Will Able to Develop, Implement and Control The Business, Corporate and Functional Strategy in The Corporation

Capability to Develop the Strategy (Business, Corporate and Functional Strategy)

Capability to Implement the Strategy

Capability to Control the strategy

Capability to Use the Tools and Concepts in Developing Business, Corporate and Functional Strategy: SWOT, Business Model, Strategic Thinking, Strategy Diamond, etc.

Capability to Develop Strategic Initiatives

Capability to Develop Strategic Measures

Capability to Explore External Environment

Capability to Explore Internal Environment

Understand the Corporate Governance and Ethics in Strategic Decision Making

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6. The Course Plan

Date January 22, 2013 Outcome(s) Understanding concept of strategic management. Understanding Corporate Government and Ethics in Strategic Decision Making Activity(ies) Session 1 Introduction Reading Discussion: Strategic Thinking and Basic Concept of Strategic Management Session 2 Reading Discussion: Corporate Governance, Leading Strategically Through Vision and Mission. Group Discussion: Session 3 Case 1 Class Discussion Wrap Up January 29, 2013 - Capability to Explore External Environment. - Capability to Explore Internal Environment Session 4 Reading Discussion: Business Model Session 5 Interactive Discussion: External Environment Group Discussion: Session 6 Interactive Discussion: Core Competencies, Distinctive Competencies and Internal Environment Case-2 Discussion - Reading: RM-2, RM-3 - Reading: RTB-1 pages 94-135, RTB2 pages 34-60, RM4 - Reading: RTB-1 pages 136-171, RTB-2 pages 62-85, RM-5 - Case-2 : C-2 Shanghai Volkswagen: Time for a Radical Shift of Gear - Quiz/ Class Activity M. Toha M. Toha Preparation - Reading: RM-1 - Readings: Business and Corporate Strategy Syllabi, RTB-1 pages 2-41, RTB-2 pages 1-28. - Readings: RTB-1 pages 42-91; RTB-2 pages 248-274. - Reading Case 1: C1- The Recalcitrant Director at Byte Product Inc. M. Toha Evaluation - Class activity Facilitator M. Toha

M. Toha

M. Toha

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Date February 5, 2013

Outcome(s) Capability to Develop Business Strategy

Activity(ies) Session 7 Reading Discussion: Strategic Positioning Session 8 Interactive Discussion: Strategy Formulation: Business Strategy Group Discussion: Case-3 : C-3 Samsung Electronics Case-4: C-4 Chrysler in Trouble Session 9 Class Presentation Case-3, C-4

Preparation - Reading: RM-6, RM-7 - Reading: RTB-1 pages 173-199, RTB-2 pages 88139, RM-8, RM-9 - Reading Case: C-3 Samsung Electronics and C-4 Chrysler in Trouble

Evaluation - Quiz/Cla ss Activity

Facilitator M. Toha

M. Toha

M. Toha

February 12, 2013

Capability to Develop Corporate Strategy

Session 10 Reading Discussion: Strategy Formulation Corporate Strategy Session 11 Reading Discussion: Growth Strategy Group Discussion: Case 5: C-5 Carnival Corporation & plc (2006) Case 6: C-6 Dell Pursues Growth in a Challenging Environment Session 12 Group Presentation Case: C-5, C-6 Wrap Up

- Reading: RTB-1 pages 204-229, RTB-2 pages 140165 - Reading: RM-10, RM 11, RM 12. - Reading Case: C-5 Carnival Corporation & plc (2006) and C-6 Dell Pursues Growth in a Challenging Environment

- Quiz/ Class Activity

M. Toha

M. Toha

M. Toha

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Date February 19, 2013

Outcome(s) Capability to Develop Functional Strategy

Activity(ies)

Preparation

Evaluation - Quiz/ Class Activity

Facilitator - M. Toha

Session 13 Reading Discussion: Functional Strategy

- Reading RTB-1 pages 236-266

-

Case 7: C-7 Marvel Entertainment

Group Presentation and Discussion Case-7: C-7

- M. Toha

Session 15 Wrap Up
February 26, 2013 MID TEST

- M. Toha

March 5, 2013

Capability to Develop Cooperative and International Strategy

Session 16 Reading Discussion: Cooperative Strategy

Session 26 Reading Discussion: International Strategy Group Discussion: Case 8

- Readings: RTB-2 pages 167-221, RM 11, RM 12 - Readings: RTB-2 pages 222-246, RM 13, RM 14 - Reading: RM-15 - Reading C-8 AmorePacific: From Local to Global Beauty

- Quiz/ Class Activity

- M. Toha

- M. Toha

Session 18 Case Discussion: Case-8; Wrap-Up

- M. Toha

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Date March 12, 2013

Outcome(s) Capability to Develop Program Capability to Implement the Strategy

Activity(ies) Session 25 Reading Discussion: Strategy Implementation,

Preparation - Readings: RTB-1 pages 269-296, RTB-2 pages 276328 - Readings: RTB-1 pages 300-322, RTB-332-349 - Case 9: C-9 Singapore Telecom: Strategic Challenges in a Turbulent Environment. 2000

Evaluation - Quiz/ Class Activity

Facilitator - M. Toha

Session 26 Group Discussion: Strategy Implementation Reading Discussion: Staffing and Directing

- M. Toha

Session 27 Case Presentation and Discussion Case: C-9 Wrap Up

- M. Toha

March 19, 2013

Capability to Control the Strategy

Session 25 Reading Discussion: Strategy Evaluation and Control

- Readings: RTB-1 pages 328-360, RM16 - Case Reading: C-10 Starbucks Coffee Company: The Indian Dilemma.

- Quiz/ Class Activity

- M. Toha

Session 26 Group Discussion: Strategy Evaluation and Control and Case 10

- M. Toha

Session 27 Case Presentation and Discussion Case: C-7 Wrap Up

- M. Toha

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Date March 26, 2013

Outcome(s) Capability to Develop Strategic Measures

Activity(ies) Session 28 Reading Discussion: Setting Strategic Relevance Measurement (KPI) Session 29 Reading Discussion: Setting KPI (Continue) Group Discussion: Case 11: C-11 HarleyDavidson: Preparing for the Next Century. [Harvard Business School#9-906-410] Session 30 Case 11 Presentation and Discussion Wrap Up

Preparation - Readings: RTB-3 - Case Reading: C-11 Harley-Davidson: Preparing for the Next Century. [Harvard Business School#9-906-410]

Evaluation - Quiz/ Class Activity

Facilitator - M. Toha

- M. Toha

- M. Toha

April 2, 2013

Capability to Manage Entrepreneurial Venture and Small Business

Session 28 Reading Discussion: Developing Strategic Initiatives Readings: RTB-3 Session 29 Group Discussion: Case 12: C- C-12. Panera Bread Company (2010): Still Rising Fortunes? Session 30 Case 12 Presentation and Discussion Wrap Up

- Reading: RTB-3 - Reading: C-12

- Quiz/ Class Activity

- M. Toha

M. Toha

M. Toha

April 9 2013

FINAL TEST

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7. Grading
Grading of this course is based on whether or not participants performance meets the module standards for completion and proficiency in the subject materials. Your final grade will be weighted as follows:

Item Quizes & Asignment Participation Mid-term Examination Final Examination

Weight 10% 35% 25% 30%

8. Students Guidance
PREQUISITES Technology & Operations Management, Marketing Management, People Management & Organization Behavior, Financial Management and aside from management experiences are required for this course.

LEARNING METHOD The case method and other interactive methods are used throughout the subject. Class members are encouraged to incorporate concepts from assigned readings into their analysis of the case. The case method may include both large group discussions and/or presentations by syndicate teams. All class members are expected to have read each case and reflected upon the assigned questions, whether or not their team has been assigned the case. Presentations

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Syndicates may be randomly assigned to make presentations of their case analysis to the entire class at the time of case will be discussed. Therefore all syndicates should make appropriate preparations. The audience for the case presentations is the other members of the class. Please address your talk to them. The syndicates may make the presentation as a team, or assign a spokesperson to each case. In any case the syndicates should ensure that all team members have any equal opportunity to participate in the presentations. The criteria for measuring the effectiveness of presentations include: 1. 2. 3. 4. 5. Ability to stimulate interest among classmates Ability to relate concepts from the readings to the issues in the specific situation How well the discussion drew out insights and ideas from the participants How well organized was the discussion How comprehensive was the analysis

Some specific case questions are usually provided to help you to prepare the case reports, but your own ideas and creativity are paramount. Keep the reports concise. There is no need to summarize the case materials. Simply get to the main points and provide your analysis and/or recommendations with supporting justification. Syndicates should submit a brief written summary of their analysis and recommendations to the facilitator at the time case will be discussed in Power Point format, with two slides printed on each page.

Quizes & Assignment There will be short quizzes or assignment on strategic management sessions. The quizzes will be based on the assigned reading. The primary purpose of the quizzes is to augment the learning process.

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Class Participation Active participation is expected throughout the entire class and students should make thoughtful contributions to the discussion. Please note that frequency (i.e. quantity) of contributions in class is not the major criteria for effective class participation. The classroom should be considered a laboratory in which the student can test his/her ability to convince peers of the correctness of ones approach to complex problems and ones ability to achieve the desired results by using that approach. Criteria that are useful in measuring effective class participation include: 1. Is the participant a good listener? 2. Are the points that are made relevant to the discussion? Are they linked to the comments of others? 3. Do comments show evidence of incorporating the concepts from readings into the analysis of the case? 4. Is there a willingness to test new ideas, or are all comments safe? (safe is defined as simply repeating case facts without analysis and conclusions). 5. Do comments clarify or build upon the important aspects of earlier comments and lead to a clearer statement of the concepts being covered and the problems being addressed?

9. Main References
Required text books (pocket books): RTB-1. Wheelen, T.L. and Hunger, J. D. (2012), Strategic Management and Business Policy toward Global Sustainability, Pearson International Edition, Pearson Education, Inc., 13th Edition. RTB-2. Ireland, Hoskisson and Hit (2009), The Management of Strategy: Concept and Cases, International Student Edition, South-Western Cengage Learning, 8th Edition. Kaplan, Robert S. & Norton, David P. (2008), the Execution Premium: Linking Strategy to Operation for Competitive Advantage, Harvard Business Press.

RTB-3

Reading Materials: RM-1. Lawrence, E (1999), Strategic Thinking: A Discussion Paper, Public Service Communication of Canada. Page 14 of 17

RM-2. RM-3. RM-4. RM-5. RM-6. RM-7. RM-8. RM-9. RM-10. RM-11. RM-12. RM-13. RM-14.

Osterwalder, A and Pigneur, Y (2010), Business Model Generation, John Wiley & Sons, Inc., Hoboken, New Jersey. Lindgadrt, at.al. (2009), Business Model Innovation: When the Game Gets Tough, Change the Game, The Boston Consulting Group, 2009. Porter M.E. (2007), Understanding Industry Structure, Harvard Business School. Prahalad, C. K. and Hamel, G (1990), The Core Competence of the Corporation, Harvard Business Review, May-June. Porter, M.E. (1996), What is Strategy?, Harvard Business Review, NovemberDecember. Kumar, Nirmalya (2006), Strategy to Fight Low Cost Rivals, Harvard Business Review, December. Collis & Rukstad (2008), Can You Say What Your Strategy Is, Harvard Business Review, April. Organization, Competitive Strategy, Harvard Business Review, Volume 1. Mascarenhas, B.et.al., Five Strategies for Rapid Firm Growth and How to Implement Them. Garcia-Pont, Canales & Noboa (2009), Subsidiary Strategy: Embedded-ness Component, Journal of Management Studies, Maret 2009. Dobbs, R, Goedhart, M., Suonio, H. (2007), Are Companies Getting Better at M&A? McKinsey on Finance, Winter. Barlett, A., Ghoshal S. (2000), Going Global: Lesson fro the Late Movers, Harvard Business Review, March-April Lovallo & Sibony (2010), The Case for Behavioral Strategy, McKinsey Quarterly, 2010.

RM-15. Balagopal & Gilliland (2005), Integrating Value and Risk in Portfolio Strategy, The Boston Consulting Group, RM-16. Gino at al. (2006), R&D Portfolio Strategy, Diversification and Performance: An Information Perspective, Working Paper. Reference books and recommended reading: RB-1. Carpenter & Sanders (2009), Strategic Management: A Dynamic Perspectice Concepts and Cases, Pearson International Edition, Pearson Education International, ISBN13:978-0-13-500934-5. Kaplan, Robert S. & Norton, David P. (2004), Strategy Map, Harvard Business School Press.

RB-2.

Cases C-1. C-2. C-3. C-4. C-5. C-6. The Recalcitrant Director at Byte Products, Inc.: Corporate Legacy versus Corporate Responsibility [RTB-1 Case#1]. Shanghai Volkswagen: Time for a Radical Shift of Gear [Asia Case Research Center# HKU 373] Samsung Electronics [Havard Business School Product#705508] Chrysler in Trouble [RTB-1 Case#17] Carnival Corporation & plc (2010) [RTB-1 Case#16] Dell Pursues Growth in a Challenging Environment [RTB-2 Case#14] Page 15 of 17

C-7. C-8. C-9. C-10. C-11. C-12.

Marvel Entertainment Inc. [RTB-1 Case#15] AmorePacific: From Local to Global Beauty [Harvard Business School#9-706-411] Singapore Telecom: Strategic Challenges in a Turbulent Environment. 2000. Asian Research Journal, Vol. 4, Number 1, pp. 49-77. Starbucks Coffee Company: The Indian Dilemma [RTB-1 Case#5] Harley-Davidson: Preparing for the Next Century. [Harvard Business School#9-906-410] Panera Bread Company (2010): Still Rising Fortunes? [RTB-1 Case#32]

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