The University of Hong Kong

Faculty of Business and Economics

Master of Business Administration
PMBA6011 Competitive Strategy (Full-time)

Instructor: Prof. Kevin Zhou Tel: 852-3917-1006

Chair Professor of Strategy/IB Fax: 852-2858-5614
Email: kevinzhou@business.hku.hk (preferred) Office: KKL 1224

I. Course Information
Course Description:
How to achieve competitive advantage and superior performance is critical for any business. To
address this pivotal issue, this course focuses on the formulation and implementation of business
strategies. Successful strategy requires a detailed understanding of the surrounding environment
and firms’ ability in creating customer value better than the competitors. Moreover, competitive
advantage and superior performance is a fleeting phenomenon for a business, because firms
compete with one another in rapidly changing environments. Accordingly, the course introduces
competitive dynamics in an ever-changing context, with an emphasis on non-traditional
strategies such as blue-ocean strategy and Internet strategy. Also, companies not only compete
with each other, but also cooperate with one another for strategic synergy, with the interfirm
strategies such as contracts, strategic alliances, and merger and acquisition. Finally, companies
increasingly operate at the global scale, so the course will also examine the macro environments
and their impacts on strategic formulation and implementation.

Overall, the course will focus on the analytical and managerial tasks involved in developing
strategies that create superior customer value in an ever-changing global competitive landscape.
It aims to help students improve their strategic thinking and business judgment.

Course Objectives
 To understand the theories of strategic management, external and internal environments,
and business strategy
 To develop an understanding of the nature of business competition
 To develop the essential skills to formulate strategies to pursue business opportunities
 To understand the competitive dynamics of corporate strategies
 To acquire the skills to solve management decision problems in strategic planning and
implementation

Textbook
Strategic Management (4th Edition), by Frank Rothaermel; MaGraw-Hill Education, 2018

A packet of cases and articles from various sources will be provided.

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Course Learning Outcomes (CLOs)
By the end of the course, students should be able to:
 CLO1. Explain the strategic management theories and concepts
 CLO2. Understand the impacts of the internal and external environments of a firm on
firm performance
 CLO3. Apply analytical frameworks to define and analyze strategic problems as well as
to formulate and implement business strategies
 CLO4. Explain the complex business opportunities and threats in competitive
environments
 CLO5. Demonstrate skills in case analysis, presentation, communication, and team work

Alignment of Program and Course Outcomes

Program Learning Outcome Course LOs
1. Acquisition and internalization of business knowledge and skills in key CLO1, CLO2, CLO3.
functional areas. CLO4
2. Application of business knowledge to solve business problems. CLO2, CLO3, CLO4
3. Develop managerial leadership and inculcate professional ethics and CLO4
competency in business.
4. Developing global outlook. CLO2, CLO3, CLO4
5. Mastering communication skills. CLO5

II. Course Assessment

Teaching and Learning Activities

Various activities will be employed, including (TLA1) lectures and videos, (TLA2) class
discussion, (TLA3) in-class exercises, (TLA4) assignments and cases, and (TLA5) group project.
The focus of all activities will be on the understanding of the concepts and application of the
major framework.

Assessment
A1: Class Participation & Assignments 30%
A2: Group Project & Presentation 25%
A3: Individual Case Analysis 1 22.5%
A4: Individual Case Analysis 2 22.5%
100
1. Class Participation & Assignments/Homework (30%)

Attendance is a necessary condition for class participation. It is also important to attend all
the classes because the most insightful ideas come primarily from class discussion. You are
also required to attend all the presentations sessions.

You are expected to actively participate in the class discussion. I may also randomly call on
students during the semester. Your contribution to the discussion will significantly influence
your class participation grade. Your participation grade will be based on (1) class attendance
(on time), (2) the quality/frequency of your comments, and (3) your answers to the questions.

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 Most classes are accompanied with activities, cases, and homework. There will be group-
based case analyses and integrative exercises during the class. The purpose is to help you
better understand the most important concepts and their applications.

2. Two Individual Case Analysis Report (22.5%+22.5% = 45%)

Each student is required to submit Two Case Analysis Reports: Case 0 plus one case from
the four cases other than the group case. Students should work on the case report
independently without consulting any person other than the professor.

3. Group Project (25%)

Each group will complete a group project to work on an assigned case analysis and present your
analysis in the class.
 Requirements for group case analysis: (i) offer a brief introduction of the case materials, (ii)
identify the key issues in the case, (iii) conduct a thorough analysis of the possible solutions
to the identified issue, (iv) identify the pros/cons of alternative strategic options, and finally
(v) offer strategy recommendations for the identified issues.
 All the group members are required to present. The presentation will be 20-minute followed
by a 5~10 minute Q&A session. The professor and all your classmates other than your group
members will evaluate your presentation.
 At the end of the semester, your contribution to the group project will be evaluated by each
of your group members. For this purpose, a peer evaluation form will be handed out by the
end of the semester. This peer evaluation will be indexed to your final group exercise grade.
 Please hand in your PPT before the case presentation.

III. Learning Outcomes, Teaching and Learning Activities, and Assessment

Course LOs Activities Assessment

(CLO1) Develop skills in analyzing economic, TLA1, 2, 3, 4, 5 A1, 2, 3
cultural, and legal/political differences between
countries
(CLO2)Apply international business theories to TLA1, 2, 3, 4, 5 A1, 2, 3
address issues related to country selection and
entry strategies etc.
(CLO3) Build managerial leadership and TLA1, 2, 3, 5 A1, 2, 3
competency in managing international entry and
operation strategies
(CLO4) Develop skills in case analysis, TLA3, 5 A1, 2, 3
presentation, communication, and team work

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Standard of Assessment
Class participation, assignments, project reports and exams are graded using the following
criteria:
A+, A, A- : demonstrate a clear understanding of and the ability to apply the theory, concepts
and issues relating to the topic
B+, B, B-: demonstrate a good understanding and some application of the theory and issues
relating to the topic
C+, C, C-: demonstrate a good understanding of the theory, concepts and issues relating to
the topic but limited application relating to the topic
D+, D: demonstrate mainly description showing basic understanding of the topic but no
application
F: demonstrate limited understanding of the topic and draw conclusions unrelated to the topic

IV. COURSE POLICIES

Class Conduct: Please respect your instructors and your fellow students. You are required
to attend all classes on time. If you have to miss a class, please write a formal notice to
inform the instructor at least one day before the class.
Academic Dishonesty: The University Regulations on academic dishonesty will be strictly
enforced. Please check the University Statement on plagiarism at
http://www.hku.hk/plagiarism/
Plagiarism, cheating, and other misconducts: Academic dishonesty will NOT be tolerated.
All materials submitted in this course must be your own original work. Any material not
completely original must be credited to the proper source.
Attendance: According to FBE policy, students must attend at least 70% of classes in order
to pass the course.

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 V. Course Schedule (Full-Time)
Thursday Topic Readings Due
1 Oct 23 Competitive Strategy: An Overview Ch 1 & 2
(Tue) What is Strategy?

2 Oct 25 External Analysis and Opportunity Identification Ch 3

(Thur) How to Deal with External Challenges?

3 Oct 30 Internal Analysis and Core Competencies Ch 4

(Tue) How to Achieve Sustainable Advantage?

4 Nov 1 Positioning Strategy Ch 6 Case 0

(Thur) Low-Cost vs. Differentiation
Case 0: Cleopatra

5 Nov 8 Blue Ocean Strategy Ch 6 & 7 Case 1

(Thur) How to Dive in the Blue Ocean?
Case 1: Zuji

6 Nov 15 Internet Strategy Handout Case 2

(Thur) Positioning vs. Explosion?
Case 2: 15fen

7 Nov 22 Global Strategy Ch 10 Case 3

(Thur) Standardization or Localization?
Case 3: RoboTech

8 Nov 29 Corporate Strategy Ch 8 & 9 Case 4

(Thur) Alliance or M&A?
Case 4: Unilevel

The information contained in this syllabus is subject to change and any changes made to this syllabus will be
announced in class.

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 Mapping of Students and Case Assignments
Group Project Individual Case 1 Individual Case 2
(25%) (22.5%) (22.5%)
Members of group 1 Case 1 Case 0 Any case from Cases 2~4
Members of group 2 Case 1 Case 0 Any case from Cases 2~4
Members of group 3 Case 2 Case 0 Any case from Cases 1 & 3~4
Members of group 4 Case 2 Case 0 Any case from Cases 1 & 3~4
Members of group 5 Case 3 Case 0 Any case from Cases 1, 2 & 4
Members of group 6 Case 3 Case 0 Any case from Cases 1, 2 & 4
Members of group 7 Case 4 Case 0 Any case from Cases 1~3
Members of group 8 Case 4 Case 0 Any case from Cases 1~3
 
Case Questions
Case 0 Colgate-Palmolive Cleopatra

1. Was the pre-launch international business research for Cleopatra in Canada appropriate? What could
Cleopatra have done differently?
2. Was the launch strategy for Cleopatra in Canada appropriate? Why or why not.
3. What did the research findings reveal about the reasons of Cleopatra’s poor performance after one
year?
4. What are the pros/cons of each of the three decision options:
1) Admit defeat and discontinue the brand;
2) Change the strategy, but do not change the product; and try to get a 4.5% market share by giving it
more time and support;
3) Alter the strategy and the product itself.
5. Which option should Mr. Steve Boyd adopt for Cleopatra? Please explain Why what you recommend
is the best option & How you are going to implement it.
Case 1 Zuji: Finding a Winning Strategy
1. Analyse the Online Travel Agent industry in HK and evaluate its attractiveness. Based on the analysis,
identify the threats and opportunities for an online travel agent?
2. Run a company analysis of Zuji and identify the reasons why it has not performed well as expected in
Hong Kong?
3. What are the strategic options for Zuji and what are the pros/cons of each option?
4. If you are Charlie Wong, CEO of Zuji, what strategy would you take to improve Zuji’s performance?
Case 2 15fen: Finding the Blue Ocean in China’s Fresh Food
1. What does the traditional Fresh Food market compete on? Please identify the important attributes that
define the market behavior.
2. What are the customer segments of Traditional Fresh Food market? What are the three-tiers of
noncustomers? What are the pain points and preferences of three-tiers of noncustomers?
3. Use ERIC framework to identify the potential blue ocean for Fresh Food market.
4. Based on the analysis, evaluate 15Fen’s strategic progress overtime. Does its current strategy fit with
your blue ocean propositions?
5. Provide strategic recommendations for 15Fen to catch the potential blue ocean of Fresh Food market.

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Case 3 RoboTech: Storming into the U.S. Market
1. Put yourself back in the financial crisis of 2008-09. With the information available by 2009, how
would you evaluate Chen’s decision to invest $45 million to diversify RoboTech into medical
robotics?
2. At the end of 2016, looking back over RoboTech’s three years in the U.S. market, how well do you
think it has done? In light of its management shortfalls, what would you suggest RoboTech should
have done differently?
3. To move forward in 2017, what are the alternative strategic options for RoboTech? What are the pros
and cons of each option?
4. What strategic option would you recommend RoboTech to take, and why? How should RoboTech
implement it successfully?

Case 4 Unilever’s New Global Strategy: Competing through Sustainability

1. How would you evaluate Paul Polman’s 2010 decision to implement a new strategy based on the
Unilever Sustainable Living Plan (USLP)? What benefits did it offer? What risks did it present?
2. In early 2015, four years into the program, how effective do you think the implementation of the
USLP strategy has been? What has it done most effectively and ineffectively?
3. What are the pros and cons of the three strategic options (i.e., ‘double down’, ‘hunker down’, and
‘pivot and refocus’)?
4. What strategic option would you recommend Unilever to take, and why? How should Unilever
implement it successfully?

Notes
 The case report should be no more than 6 typed (single-spaced, font-size 11 or 12) pages excluding
exhibits and appendices.
 Case discussion questions are provided to help you identify the key issues of the case. Please
address these questions directly.
 Point-form is preferred. No folder, please.

Due: hand in a hardcopy at the Beginning of Class on the day of the case discussion.

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 Prof. Kevin Zhou
Prof. Kevin Zhou is Changjiang Scholar Chair Professor,
Chair Professor of Strategy and International Business at
Faculty of Business and Economics, University of Hong
Kong. Prof. Zhou received a B.E. (with honors) in Automatic
Control and an M.S. in Economics and Management at
Tsinghua University, and a Ph.D. specializing in Marketing
and Strategy from Virginia Polytechnic Institute and State
University

Prof. Zhou’s research interests include capability and

innovation, interfirm exchanges, and strategic issues in
international business and emerging economies.

Prof. Zhou has rich experience in teaching Competitive Strategy, International Business,
International Marketing, Marketing Research, Marketing Management at Virginia Tech,
University of Hong Kong, and University of North Carolina at Charlotte. He has also taught
Business Data Analysis for MBA, Marketing Research for IMBA, and Business Research for
PKKI Executive Programs at HKU, as well as Marketing Management for EMBA program at
UNCC. He has rich consulting experiences working with companies such as Federal
Pharmaceutical, 3M, Riche Monde, and TCH. He received the Outstanding Teacher
Awards for IMBA Teaching (2006-2007) at HKU.

Prof. Zhou has published numerous papers in prestigious journals such as Administrative Science
Quarterly, Strategic Management Journal, Academy of Management Journal, Journal of
Marketing, Journal of International Business Studies, Organization Science, and among others.
He has been invited to present his work and give keynote speeches at various universities and
international conferences.

Prof. Zhou currently serves as the senior editor of Asia Pacific Journal of Management and
associate editor of Journal of International Marketing, as well as the editorial board member of
Strategic Management Journal, and Journal of International Business Studies. He has been the
world’s top 1% cited scholars based on ISI's Essential Science Indicators (ESI) since 2011. In
2016, he is the first and only Business and Economics Scholar on the list of ESI Most Cited
Scientific Researchers in Greater China area. In recognition of his exceptional intellectual
contribution, he was awarded the first FBE Outstanding Researcher Award in 2014 and HKU
Outstanding Researcher Award in 2016.