BUS401 Strategic Management

University of San Francisco

BUS401 Strategic Management
Class Schedule:
Professor:
E-mail:
Phone:
Office:
Office Hours:

BUS40102:
12:45 pm - 2:30 pm, Malloy Hall 129, Tuesday & Thursday
BUS40103:
2:40 pm - 4:25 pm, Malloy Hall 129, Tuesday & Thursday
Dr. Liang Wang
lwang28@usfca.edu
(415) 422-5801
MH 304
11:00am 12:00pm, Tuesday & Thursday, or by appointment

OBJECTIVES
The course is designed to help students develop a strategic and holistic thinking of fundamental issues about
business competition. The focus is strategic management, the task of crafting, implementing, executing, and
monitoring an organizations strategy for sustainable competitive advantage. The course places emphasis on the
profit-oriented enterprises operating in a competitive environment, although a serious attempt is made to elaborate
on the general applicability of the strategic management discipline to all sizes and types of organizations including
companies, not-for-profits and government agencies.
The course uses readings, lectures, case discussions and role plays to expose students to a wide range of terms and
concepts, as well as the kinds of situations that face managers and bear directly on an organizations ultimate
success. The material covered draws on the evolving body of literature in strategic management and presents the
prevailing views and ideas about the manager as the architect and implementer of strategy.
The course combines classic literatures and case studies to help students develop and demonstrate the skills in
dealing with complex situations and diverse information with theoretical foundation. Upon completion of this
course, students will be expected to adequately be able to
1. develop an appreciation of the strategic issues facing managers;
2. adopt an appropriate vocabulary and tool kit to identify strategic issues, identify appropriate strategies,
evaluate alternatives, and recommend specific courses of action for creative solutions to a strategic issue.
COURSE MATERIALS
1. Coursebook (required)
A reader containing all required readings for this course is sold in the bookstore.
2. Recommended Readings (optional)
The Wall Street Journal, Harvard Business Review
ASSIGNMENTS
Components & Weights
1. Individual Assignment:
2. Individual presentation:
3. Quiz:
4. Participation:
5. Term Project:
5.1 Proposal Presentation 5%
5.2 Report Presentation 10%
5.3 Written Report 20%
5.4 Support meetings 5%

20%
10%
20%
10%
40%

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1. Individual Assignment (due on March 7)

Any case in the case book can be used for the individual assignment, which tests your ability to apply theory to
practice in the form of a consulting report. The assignment questions will be distributed in class one week prior
to the due date. The assignments are due at the beginning of class. Electronic submissions will NOT be
accepted, please hand in hard copies.
Students are expected to develop and present a complete analysis of each assigned case individually and not to
consult with others. You must substantiate your recommendations using persuasive arguments and appropriate
theories.
Maximum length is 3 double-spaced pages with at least 1-inch margin on all four sides of the pages. Use Times
New Roman, 12-font only. On top of the 3-page limit, you can include (a) one title page, (b) one page of
appendix which includes tables or figures only, and (c) as many reference pages as you wish. Reference pages
should include reference only, and an example of a reference is: Adam, J. A. 2003. Mathematics in nature:
Modeling patterns in the natural world. Princeton, N.J.: Princeton University Press.
2. Individual presentation
Each student is required to present the article or case to the class during each class. The task is to summarize the
key ideas of the theory or the storyline of the case. No Power Point slides are needed.
3. Quiz
In some classes, we will have quiz. The dates of the quiz will not be pre-announced. There will be no makeup
for the quiz. But I will drop your lowest quiz score when calculating the final quiz grade. We will only quiz on
REQUIRED reading materials.
4. Participation
The key to a high participation mark is making a quality contribution to every class. Be sure to speak out in
class. This is the time and place to develop the assertiveness and communication skills that are necessary for
success in business. There will be no other opportunity to make up the grade. The instructor will make a note of
each students participation. Name cards are used to help give credit for your participation. I encourage you to
make yourself known to me by attending my office hours. You may also check after class to ensure your
contributions have been accurately recorded. Credit will not be given to those students who cannot be identified
by a name card.
5. Term Project (written report due at the last class)
Groups of 3-5 students will analyze the environment and the strategy of a publicly traded (NYSE, NASDAQ,
and etc.) company based on secondary research. After that, the group will suggest three different strategies,
compare and contrast the pros and cons of them, and recommend one strategy to the company.
In the proposal presentation (5%), each group presents the company to be analyzed, the two issues affecting the
companys competitive advantage, and the selection rationale of the most important and urgent issue (for
details, see Step A. Defining the Issue in appendix). In the report presentation (10%), each group presents the
two/three alternatives to solve the issue and the recommendation of the best alternative (for details, see Step B.
Formulating strategic alternatives and Step C. Recommendation and Justification in appendix). Each group
will give a 10-20 minutes presentation, depending on time constraint. If time permits, a 5-10 minutes Q&A
session will follow immediately after each group presentation. The presentation will be graded by both the
instructor and other students.
After proposal presentation, each team is required to meet with me to discuss your team assignments (5%). The
meeting is to give you feedback and comment on your project works. To better help you, each team shall bring
to the meeting detailed materials and questions relating to your projects. Except your draft PPTs or draft reports,
I will be happy to give you any feedback. These meetings are important opportunities for us to exchange
information beyond team projects, so I strongly encourage you to participate in these meetings.
ATTENDANCE IS MANDATORY. If for any reason you are unable to attend class, let me know beforehand.

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Late Assignment
You shall turn in the assignment on time. If your assignment is half day late, there will be a mandatory 10% full
point deduction, if the assignment is one day late, there will be a 20% full point deduction, and even more
point deduction if the assignment is further late.
ADDITIONAL INFORMATION
1. Students with Disabilities
For any accommodation needs, students with disabilities are required to inform USF Student Disability Services
(SDS) within the first week of class, or immediately upon onset of disability, to obtain SDS Verified
Individualized Services and Accommodations (VISA) form. For details, please visit: http://www.usfca.edu/sds/.
2. Academic Honesty
Please note that students involved in academic dishonesty will receive a ZERO grade on the particular
component in which the infraction occurred and a notation of academic dishonesty in the Deans office.
Students may also receive a ZERO grade on the course, a notation of academic dishonesty on their transcripts
(i.e., Notation reads: Grade of F assigned for academic dishonesty), and/or suspension or expulsion from the
university.
3. Grade Definition
A (A-, A, A+): Superior or exceeds assignment expectations.
B (B-, B, B+): Mostly meets assignment expectations.
C (C-, C, C+): Partially meets assignment expectations.
D and Below: Does not meet assignment expectations.
Following is a general guideline:
Letter Grade
Final Score
Letter Grade
Final Score
A+
94.5 and above
C+
60-69.9
A
90-94.4
C
50-59.9
A85-89.9
C40-49.9
B+
80-84.9
D
Below 39.9
B
75-79.9
B70-74.9
Note: I may curve the final letter grades if the scores in the class are skewed.
4. University of San Francisco Honor Code
"As a Jesuit institution committed to cura personalis- the care and education of the whole person- USF has an
obligation to embody and foster the values of honesty and integrity. USF upholds the standards of honesty and
integrity from all members of the academic community. All students are expected to know and adhere to the
Universitys Honor Code. You can find the full text of the code online at www.usfca.edu/fogcutter.
SCHEDULE & READINGS
Jan 22. Introduction
Jan 24 & Jan 29. Topic 1
Strategy & competitive advantage
Porter, M. E. 1996. What Is Strategy? Harvard Business Review, 74(6): 61-78.
Jan 31 & Feb 5. Topic 2
Generic business strategies
Porter, M. E. 1998 (first published in 1980). Chapter 2: Generic Competitive Strategies, in Competitive
strategy : techniques for analyzing industries and competitors : with a new introduction: page 34-46.
New York: Free Press.
[Case study] IMAX : Larger than Life
Case Discussion Questions:

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What was IMAXs business strategy? What is it now?

Feb 7 & Feb 12. Topic 3

The external environment: Industry analysis
Porter, M. E. 2008. The Five Competitive Forces That Shape Strategy. Harvard Business Review,
86(1): 78-93.
[Case study] IMAX : Larger than Life
Case Discussion Questions:
o Why was IMAX changing its business strategy?
Feb 14 & Feb 19. Topic 4
The internal organization: Value chain analysis
Porter, M. E. 1998 (first published in 1985). Chapter 2 The Value Chain and Competitive Advantage,
Competitive advantage : creating and sustaining superior performance : with a new introduction:
page 33-53: New York : Free Press
[Case study] Netflix Inc.: Streaming Away from DVDs
Case Discussion Questions:
o Why did Blockbuster fail to repond to Netflix?
Feb 21 & Feb 26. Topic 5
The internal organization: resource-based view
Barney, J. 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management,
17(1): 99-120.
[Case study] Microsofts Search
Case Discussion Questions:
o How has Microsoft responded to competitive threats and opportunities in the past?
Feb 28 & Mar 5. Topic 6
Competitive rivalry: first-mover advantages/disadvantages
Lieberman, M. B., & Montgomery, D. B. 1988. First-Mover Advantages. Strategic Management
Journal, 9: 41-58.
[Case study] Apple Inc. in 2012
Case Discussion Questions:
o Why did Apple historically struggle with PCs?
Mar 5 & Mar 7. Topic 7
Competitive rivalry: multipoint competition
Chen, M. J. 1996. Competitor analysis and inter firm rivalry: toward a theoretical integration.
Academy of Management Review, 21(1): 100-134.
[Case study] Microsofts Search
Case Discussion Questions:
o Should Microsoft keep pursuing the market for search and search-related advertising? Why?
Mar 19 & Mar 21. Topic 8
Strategic entrepreneurship: blue ocean strategy
Kim, W. C., & Mauborgne, R. 2005. Blue Ocean Strategy: From Theory To Practice. California
Management Review, 47(3): 105-121.
[Case study] Making a Blue Ocean Strategic Move that Discourages Imitation: The Case of
Wikipedia
Case Discussion Questions:
o How sustainable is Wikipedias blue ocean strategy sustainable?
Mar 26. Proposal presentation

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Apr 2 & Apr 4. Topic 9

Strategic entrepreneurship: disruptive innovation
Christensen, C. M., & Overdorf, M. 2000. Meeting the Challenge of Disruptive Change. Harvard
Business Review, 78(2): 66-76.
[Case study] Netflix Inc.: Streaming Away from DVDs
Case Discussion Questions:
o Is online streaming a disruptive innovation? How should Netflix respond?
Apr 9 & Apr 11. Topic 10
Corporate-level strategy: Vertical integration
Porter, M. E. 1998 (first published in 1980). Chapter 14: The strategic analysis of vertical integration,
in Competitive strategy : techniques for analyzing industries and competitors : with a new
introduction: page 300-323. New York: Free Press.
[Case study] Apple Inc. in 2012
Case Discussion Questions:
o Should Apple keep pursuing the market for map? Why?
Apr 16 & Apr 18. Topic 11
Corporate-level strategy: parenting advantages
Campbell, A., Goold, M., & Alexander, M. 1995. Corporate Strategy: The Quest for Parenting
Advantage. Harvard Business Review, 73(2): 120-132.
[Case study] Apple Inc. in 2012 + Microsofts Search
Case Discussion Questions:
o What is your assessement of Apples portofolio, and Microsofts portofolio?
Apr 23 & Apr 25. Topic 12
Corporate-level strategy: M&A
Hitt, M., Harrison, J., Ireland, R. D., & Best, A. 1998. Attributes of Successful and Unsuccessful
Acquisitions of US Firms. British Journal of Management, 9(2): 91-114.
[Case study] Gillette's Energy Drain (A): The Acquisition of Duracell
Case Discussion Questions:
o Which attributes of Successful and Unsuccessful Acquisitions apply to Gillettes acquisition of
Duracell?
Apr 30 & May 2. Topic 13
Corporate-level strategy: strategic alliances
James Williamson, P., & De Meyer, A. 2012. Ecosystem Advantage: How to successfully harness the
power of partners. California Management Review, 55(1): 24-46.
[Case study] Dyer, J. H., & Nobeoka, K. 2000. Creating and managing a high-performance
knowledge-sharing network: The Toyota case. Strategic Management Journal, 21(3): 345-367.
May 7 & May 9. Reflections & Presentations

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APPENDIX: TERM PROJECT ROADMAP

The term project is tasked with providing you with an opportunity to assume the role of a business consultant hired
by a listed firm. It is common that the focal firm does not ask for your advice about a specific question, such as
should our firm acquire our largest rival. Rather, the firm raises a vague question: Please come to our firm,
collect necessary information, and based on your analysis provide us with your recommendations about what we
should do in the near future. This vague question, which is prevalent in the consulting industry, is the focal question
to be addressed in your group report.
The graph below summarizes the procedures for your term project:
Identify:
Two strategic issues

Select:
One issue for the term
project

Evaluate:
Importance
Urgency

Formulate:
Two or three strategic
alternatives for the issue

Evaluate &
Recommend:
One alternative, justify
your choice

Step A. Defining the Issue

Your groups first task in analyzing the chosen firm is to clarify the statements of the issues faced by the focal firm.
The issues range from the key concerns, problems, decisions, challenges to opportunities that the firm are
confronting. It may appear to your group that a problem may be only a symptom, or the tip of the iceberg, of a
deeper hidden issue. In the consulting industry, the major issues are those most relevant to the members of the top
management team of the firm. In other words, the CEO of the firm, who is concerned about these issues, is currently
seeking solutions of these issues.
For each issue identified by your group, think about the following two factors: (1) Importance. One of the
judgements that demand your attention is whether this issue is of strategic importance to the organization. Would the
issue make or break the firm? Would it be a major competitive advantage? Would it influence the firms profitability
in a significant way? (2) Urgency. The judgement of the sense of urgency about the issue is fundamental in your
term project. A good metaphor is the emergency room in a hospital in which a quick decision must be made to sort
out the priority of patients.
Your term project is to focus on one issue, and one issue only, from the set of issues chosen by your group. The
chosen issue to be analyzed in your term project is usually an issue that is both urgent and important.
Step B. Formulating two or three strategic alternatives
Based on the central issue, your group is to clearly outline strategic alternatives for the issue. Each of them should
be specific, and must contain at least the following components:
1. What is the decision/recommendation?
2. How and when should the decision be implemented?
Step C. Recommendation and Justification
Choose one strategic alternative and justify the decision. You can use some of the following commonly used
decision criteria. You do not need to use all of them; choose some criteria most relevant to your firm.
Table 1: Commonly Used Decision Criteria
QUANTITATIVE CRITERION
QUALITATIVE CRITERION
Profit
Cash flow
Competitive advantage
Flexibility
Cost
Inventory turn
Customer satisfaction
Safety
Return on investment
Productivity
Employee morale
Visual appeal
Market share
Staff turnover
Corporate image
Obsolescence
Capacity
Quality
Ease of implementation
Cultural sensitivity
Delivery time
Growth rate
Synergy
Motivation

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Risk
Quantity
Ethics
Goodwill
(Source: Mauffette-Leenders, Erskine & Leenders (2005). Learning with cases. Ivey Publishing)
Quality Requirement for the Team Project
I suggest that you constantly remind yourself and compare your project preparations with the following
requirements.

Theory: you should make efforts to apply the theories learned in the course to your project.
Evidence: You are required to provide evidences to support your analyses. Both relevant quantitative and
qualitative evidences are important in your analyses. Please avoid shallow, pure opinion-based assertion
without evidences.
Critical thinking: Your analysis shall not simply focus on repeating or summarizing the key knowledge of
the class materials. Your analysis shall emphasize insightful critiques, discussions and analyses of your
company. Both the pros and the cons of the suggestion should be mentioned and compared (i.e., Do the
pros outweigh the cons, or vice versa?).
Clarity: You will need to clearly convey your key messages, and make sure that readers fully understand
your logic and key points, especially when you present complicated arguments.

The written report should include your findings, conclusions and recommendations. The maximum page limit is 15
double-spaced pages, which include the main text, the executive summary and all appendices. On top of the 15-page
limit, please include one title page with (1) last name, first name, student number and signature for each and every
group member, (2) allocation of work done (% of total) by each group member, if not evenly distributed (each
members grade of the written report will be weighted by his/her allocation of work), (3) email address of one
corresponding group member. Use Times New Roman, 12-font only.

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