SOCIAL AND POLITICAL ENVIRONMENT OF BUSINESS

BA 4305-02 Spring 2006

TR 9:30am to 10:45am SOM 1.117

Instructor: Bindu Arya

Office: 4.406 School of Management
Phone: (972)-883-4468
Email: bindu@utdallas.edu
Office Hours: After class, or by appointment

COURSE OVERVIEW

The Social and Political Environment of Business courseis a capstone course that
is designed to build upon previous and concurrent work in the program. The
knowledge acquired in various functional areas such as finance, accounting,
operations, MIS, marketing, and organizational behavior classes will be integrated
to provide a “total business” perspective. In particular, our perspective in this
course is that of the general manager whose responsibility is the long-term health
of the firm. Hence, we focus on the key tasks, skills and responsibilities of the
general manager in diagnosing business situations and finding realistic solutions to
strategic problems.

The approach of this class is to incorporate a variety of instructional methodologies

such as case discussions, presentations, group analysis, inputs from guest speakers
and a simulation exercise. Students will be required to apply concepts and models
taught in the class to analyze strategic issues that real world companies face. To
ensure an interactive environment in the classroom, I will also utilize in-class
exercises to make the experience informal and fun. However, since both students
and the instructor are responsible for the learning that transpires in the classroom, I
expect that students have read the assigned material prior to class, actively
participate, and generally contribute to the flow of the class.

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COURSE REQUIREMENTS

This course is case-intensive and requires extensive reading along with a great deal
of discussion. Given that this is a somewhat demanding course, diligent completion
of assignments may require students to put in several hours a week beyond class
time. This effort should improve the student’s critical thinking skills while
increasing the possibility of earning a good grade. Class contributions represent a
substantial portion of the student’s final grade. Students are therefore encouraged
to share their insights based on class materials and other experiences and beliefs
from school or work in the course of class discussions. Students are responsible for
understanding the course requirements and to keep track of all important dates
specified in the syllabus to succeed in this course.

COURSE ASSESSMENT

Grades will be based on the following components:

Group Simulation 25%
Group Case Presentation 10%
Individual writing assignments 25%
Individual exams 30%
Class participation 10%

REQUIRED MATERIALS

Pearce, J. A., and Robinson, R. B. 2005: Formulation, Implementation, and control

of competitive strategy, paperback, McGraw Hill, ISBN 0072980087

Gopinath, C., and Siciliano, J. 2005: Strategize! Experiential exercises in Strategic

management, paperback, Southwestern Publishing, ISBN 0324259123

Additionally, the reader for the course that contains the cases can be purchased at
the following website:

http://www.hbsp.com/relay.jhtml?name=cp&c=c98553

FOR THE SIMULATION: SOFTWARE IS ONLY TO BE PURCHASED

ONLINE [SEE PAGE 9 FOR WEBSITE INFO]

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COURSE SCHEDULE

WEEK 1: January 10: Introduction

Topic: Introduction

Simulation: Simulation Introduction and Group formation

WEEK 1: January 12: Strategic Management: An Overview

In class Exercise: Strategize Session 1 and Session 2

Topic: An Overview of Strategic Management

Reading: Pearce and Robinson: Chapter 1

Simulation: Mike’s Bikes Registration complete

WEEK 2: January 17: Simulation

Simulation: Lab Session I

WEEK 2: January 19: Mission Statement

In class Exercise: Strategize Session 3 Ex1 and Ex2

Topic: Mission Statement and Corporate Social Responsibility

Reading: Pearce and Robinson: Chapter 2

Simulation: Mike’s Bikes Introductory Practice Round due prior to class

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WEEK 3: January 24: Simulation

Simulation: Lab Session II

WEEK 3: January 26: Corporate Social Responsibility

Topic: Mission Statement and Corporate Social Responsibility

Reading: Pearce and Robinson: Chapter 2

Case: Conoco’s “Green” Oil Strategy (392133)

Simulation: Mike’s Bikes Trial Round 1 due prior to class

WEEK 4: January 31: External Analysis

In class Exercise: Strategize Session 6

Topic: External Environment

Reading: Pearce and Robinson: Chapter 3

Simulation: Mike’s Bikes Trial Round 2 due prior to class

WEEK 4: February 2: External Analysis

Topic: External Environment

Reading: Pearce and Robinson: Chapter 3

Case: Airborne Express (798070)

WEEK 5: February 7: Global Environment

In class Exercise: Strategize Session 11

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Topic: Global Environment

Reading: Pearce and Robinson: Chapter 4

Simulation: Mike’s Bikes Trial Round 3 due prior to class

WEEK 5: February 9: Global Environment

Topic: Global Environment

Reading: Pearce and Robinson: Chapter 4

Case: Robert Mondavi and the Wine Industry (302102)

WEEK 6: February 14: Internal Analysis

In class Video/Exercise: Strategize Session 7 Ex 2

Topic: Internal Analysis

Reading: Pearce and Robinson: Chapter 5

Simulation: Mike’s Bikes Decision Round 1 due prior to class

WEEK 6: February 16: Internal Analysis

Topic: Internal Analysis

Reading: Pearce and Robinson: Chapter 5

Case: Starbucks: Delivering Customer Service (504016)

WEEK 7: February 21: MIDTERM

Exam 1: Chapters 1-5

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WEEK 7: February 23: Formulating Long-Term Strategic Objectives

In class Exercise/Video: Strategize Session 10 and Competitiveness

Topic: Formulating Long-Term Strategic Objectives

Reading: Pearce and Robinson: Chapter 6

Simulation: Mike’s Bikes Decision Round 2 due prior to class

WEEK 8: February 28: Formulating Long-Term Strategic Objectives

Topic: Formulating Long-Term Strategic Objectives

Reading: Pearce and Robinson: Chapter 6

Case: Shanghai General Motors: The Rise of a Late-comer (HKU395)

WEEK 8: March 2: Strategic Analysis and Choice in Single Product

Businesses

In class: GUEST LECTURE

Topic: Strategic Analysis and Choice in Single Product Businesses

Reading: Pearce and Robinson: Chapter 7

Simulation: Mike’s Bikes Decision Round 3 due prior to class

WEEK 10: March 14: Strategic Analysis and Choice in Single Product
Businesses

Topic: Strategic Analysis and Choice in Single Product Businesses

Reading: Pearce and Robinson: Chapter 7

Case: Apple 2002 (702469)

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WEEK 10: March 16: Strategic Analysis in the Multi-Business Company

In class Exercise: Strategize Session 14

Topic: Strategic Analysis and Choice in Multi-Business Companies

Reading: Pearce and Robinson: Chapter 8

Simulation: Mike’s Bikes Decision Round 4 due prior to class

WEEK 11: March 21: Strategic Analysis in the Multi-Business Company

Topic: Strategic Analysis and Choice in Multi-Business Companies

Reading: Pearce and Robinson: Chapter 8

Case: The Walt Disney Company: The Entertainment King (HBS 701035)

WEEK 11: March 23: Implementing strategy: Structure, leadership and

culture

In class Video: Corporate Culture and Performance

Topic: Implementing strategy: Structure, leadership and culture

Reading: Pearce and Robinson: Chapter 10

Simulation: Mike’s Bikes Decision Round 5 due prior to class

WEEK 12: March 28: Implementing strategy

Topic: Implementing strategy: Structure, leadership and culture

Reading: Pearce and Robinson: Chapter 10

Case: GE’s Two Decade Transformation: Jack Welch’s Leadership (9-399-150)

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WEEK 12: March 30: Implementing strategy II

In class Exercise: Strategize Session 15

Topic: Implementing strategy: Structure, leadership and culture

Reading: Pearce and Robinson: Chapter 10

Simulation: Mike’s Bikes Decision Round 6 due prior to class

WEEK 13: Apr 4: Strategic Control and Continuous Improvement

Topic: Strategic Control and Continuous Improvement

Reading: Pearce and Robinson: Chapter 11

Simulation: Mike’s Bikes Decision Round 7 due prior to class

WEEK 13: Apr 6: Final Exam Overview

Topic: Overview

Simulation: Mike’s Bikes Decision Round 8 due prior to class

WEEK 14: Apr 11: Simulation Exercise Presentations

WEEK 14: Apr 13: Simulation Exercise Presentations

SESSION 24: Apr 18: FINAL EXAM

Exam: Chapters 6-11[excluding Ch 9]

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EVALUATION
Group Simulation

The Mike’s Bikes simulation will be conducted with students organized into
groups of no more than 5 students that represent separate firms within an
industry. Every firm begins from the same starting point, but will compete based
on various decisions made within your team. We will begin with an introductory
practice round where you first play against the computer, then two trial rounds
against the other groups to learn to play the game, and hopefully identify some
fatal strategies. After that point, the simulation results count toward your final
grade. As the simulation continues, each team will keep a record of decisions
made, and the specific strategic reasons for those decisions. Simulations are fun,
but take the competition seriously – there are winners and losers in this game!
You will use the website www.smartsims.com and log in using the following
details:

Login ID: stutexas

Password: dallas

When the simulation ends, each group will prepare a final report (to be
approximately 10 double-spaced, typed pages) that outlines actions taken
throughout the life of the simulation. The report should include:
1. The firm’s mission statement.
2. Original strategic plan.
3. An environmental analysis – compare the status of the industry at the
beginning and the end of the semester.
4. An internal analysis of strengths and weaknesses – compare the position of
the firm at the beginning and the end of the semester.
5. Deviations/alterations to the strategic plan throughout the simulation.
6. A listing and description of all major decisions made, including assumptions
made and justifications for the decisions.
7. Evaluation of the firm’s successes and failures. What decisions were
correct? What should have been done differently? What strategies should be
implemented for the future success of the firm?

Each firm group will then make a final presentation to the class regarding their
final firm report. Assume that you are top management making this presentation to

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the board of directors at the annual shareholders meeting. Be able to defend your
decisions and assumptions.

Finally, you will individually and confidentially grade each member of your group
on participation and level of contributions.
Grading for the simulation will be as follows:
15% Final written and oral report
5% Individual participation in the simulation
5% Simulation results
Group Case Presentation

Each week, one or two groups will be responsible for the assigned case of the
week. Case assignment is on a first come first served basis.

Individual Case Analysis

Students can choose a total of 5 cases from the 8 cases listed in the syllabus for
individual case analysis. Each week when you prepare for a case, it is
recommended that you plan on reading the case at least three times. The first
reading should be a quick run-through of the text in the case. At this stage you will
want to differentiate between facts and opinions that may be expressed.

On your second reading you should read in more depth and underline important
points that may be useful. Your second reading should focus on understanding the
business and the situation. Questions that you can ask yourself are: 1) Why has this
company survived? 2) How does this business work? 3) What are the economics of
this business? In the second reading you must carefully examine the exhibits as
these contain information that will be useful in analyzing the situation. You may
need to apply analytical techniques (such as ratio analysis, growth rate analysis,
etc) to benefit from the information.

Prior to your third reading, you may want to review the assigned questions. On
your third reading, you should have a good grasp of the case. Now you will need to
get at the root cause of the problem and gather data to make specific
recommendations. There is no single correct solution and you are encouraged to
deal with the case as presented. You are strongly discouraged from acquiring
post-case data. Also in evaluating the case, you should use concepts and models
discussed in readings and in class. Individual assignments will be graded on

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content and written skills. Questions assigned for the scheduled case should be
answered in approximately two typed, double-spaced pages. Assignments must be
turned in before the start of the class session. I do not accept late assignments.

The university has mandated as part of this course a requirement of at least 15

double spaces pages of writing per individual student that will be evaluated on
grammar, punctuation, and writing style. A writing tutor will assess the written
assignments, provide detailed feedback, and determine whether a revision is
necessary. Because of this requirement, please submit 2 copies of all individual
written assignments. The writing tutor will grade your written assignments on a
scale of 1-10. Any assignments receiving grades of 5 or below must be rewritten,
and will be assessed again.

Exams

There will be two exams during the semester. These will be multiple choice exams.
Please note the scheduled dates as no make-up exams will be given.

Participation

In evaluating student contribution, I factor in the following: responsible

preparation, active participation, risk-taking, courtesy, and consistency with topic.

Important Notes

Through the semester, students are expected to follow the university’s guidelines
on student conduct with regard to cheating and other dishonorable behavior. The
instructor reserves the right to deduct points from a student’s class participation
grade and/or take other disciplinary action if a student engages in non-constructive
behavior (such as disrupting the class or abusing other individuals). For group
assignments and presentations, you will be evaluated by your peers.

Grading Policy

A+: 97 and up; A: 94 -96; A-: 90 and up

B+: 87-89; B 84-86; B-: 80-83;
C+: 77-79; C: 74-76; C-: 70-73;
D+: 67-69; D: 64-66; D-:60 and up
F: Below 60

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Name Attach photo here

Phone Number

Email address

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