BUS 344 BUSINESS POLICY CAPSTONE

DESCRIPTION

The Business Policy Capstone is an interdisciplinary seminar concentrating on the problems that confront the chief administrative officers of an enterprise. The course
stresses the overall company point of view in dealing with the myriad problems faced by the firm’s top management team in a volatile external environment. As a
capstone, the course integrates prior coursework including management, marketing, research, finance/accounting, business ethics into course content and assignments.
Much of the learning and activity in this course takes place within groups.

Required Reading: R. Duane Ireland, Robert E. Hoskisson, Michael A. Hitt, Understanding Business Strategy - Concepts and Cases
2nd Edition ©2008 ISBN-13: 9780324578997

OBJECTIVES

The purposes of this capstone course include the following:

(1) providing an understanding of and extensive practice in the collaborate strategic management process;
(2) sharpening analytical skills acquired in prior functional area course work via analyses of corporate strategies through case studies;
(3) developing an understanding, as well as an appreciation, of the relationship of an organization to its surroundings as it develops and competes within the constraints of
societal, operating, global and internal environments;
(4) providing an opportunity, via involvement in problem-based research to analyze, develop, apply, and revise strategic decisions in a volatile economic and competitive
environment.
(5) working in both individual and team-based learning environments;
(6) improving written as well as oral presentation skills using audio or video support
(7) experience with complex problem solving through mid-course strategy simulation.

ASSESSMENTS (HOW STUDENTS EARN GRADES)

(1)Active participation in Discussion Board case discussions, requiring acknowledgment (citation) of required reading and lecture materials (20%);
(2) Active contribution to cross-functional team discussions of cases that require the integration of functional area course work (20%);
(3)Team strategic plan write-up and presentation using an interactive problem-based methodology (that is, changing societal, operating, global circumstances or demands
of senior leadership will require teams to rethink problems and solutions and revise work) (20%);
(4) Individual paper: Memo to CEO recommending rejection/adoption of new strategy based on internal, external, competitive, market and financial analysis. (20%).
(5) Strategy Simulation – Week 9 and through course end. Details to follow (20%)
PROFESSOR DETAILS

Prof. Connell (CConnell@brooklyn.cuny.edu)

973-902-1528
506 Whitehead -- 8:30-9:30 Monday/Wednesday by Appointment, but 24/7 by email.

Required Reading: R. Duane Ireland, Robert E. Hoskisson, Michael A. Hitt

Understanding Business Strategy - Concepts and Cases
2nd Edition ©2008 ISBN-13: 9780324578997

Grading Formula

Points Grade
95+ A
90-94 A-
87-89 B+
84-86 B
80-83 B-
77-79 C+
74-76 C
70-73 C-
67-69 D+
64-66 D
60-63 D-
<59 F

•
 Topic/Reading Dates Assignments
Week 1: Introduction to Strategic Management Prof. Connell’s Week 1 lecture. This week we have a debate, based on the
purpose of strategy. Make sure you understand the differences between
Michael Porter’s viewpoint, the Resource-based View (RBV) and
Transaction Cost view. Choose your side and make your argument by
posting to the appropriate thread.

1/28 – 2/3 Debate:

---Team Porter’s Forces

---Team RBV

---Team Transaction Costs

Week 2: Foundations of Strategic Management 2/4 – 2/10 DELL COMPUTER CASE. Questions due in BLACKBOARD DISCUSSION
FORUM
Ch 1

1. Based on your assessment of the external environment, what conclusions

have you drawn, and what opportunities and threats require immediate action
from Dell?

2. What internal resources and capabilities at Dell can support these actions,
and what weaknesses might interfere with the company's ability to
implement a new strategy?
3. In what ways does the strategy need to be changed to respond to the
external environment, reignite growth, position the company for the future,
and win a competitive advantage by exploiting Dell's core competencies?
4. Does the nature of the changing PC market require Dell to reevaluate its
decision to minimize traditional retail in favor of direct sales as its distribution
channel?
5. Does the nature of the changing PC market require Dell to reevaluate the
extent to which JIT and lean production processes provide an advantage for
laptop-PC production? Does Dell need to change these processes to
maximize its competitive advantage? If so, how?
 Based on your discussion with Dell's top management team, you expect to
achieve agreement on the strategic direction and moves that will fulfill the
company's immediate and long-term goals. However, the issue of leadership is
hanging over your head. Who should lead Dell through this new strategic
phase?

Week 3: Leading Strategically APPLE CASE. Questions due in BLACKBOARD DISCUSSION FORUM

Ch 2 Do some background research to learn more about Steve Jobs and his
leadership style.

2. Review Apple Computer's vision and mission to understand the future

direction and core intent of the company.
3. Define the key strategic challenges confronting Apple Computer.
4. Outline some of the dimensions along which company success can be
measured.
2/11 -2/17
5. Review the critical external and internal environmental factors that have
strategic implications in the future.
6. Evaluate how Apple's strategy stands up against the rivalry in the industry.
7. What recommendations can you make to the task force to enhance the
effectiveness of the company's strategy or change the strategic approach for
better results?

Week 4: Analyzing the Strategic Environment
Ch 3
2/18 – 2/24 ALASKACOFFEE CASE Questions due in BLACKBOARD DISCUSSION
FORUM
Leadership - Identify leadership issues requiring Powell's attention during the
strategic management process.

2. External Environmental Analysis - Identify key external forces with

 immediate strategic implications for Alaska Coffee Company.
3. Internal Environmental Analysis - Identify key internal forces with immediate
strategic implications for Alaska Coffee Company.
4. SWOT Analysis - Summarize the opportunities, threats, strengths, and
weaknesses revealed through the environmental analyses.
5. Business-Level Strategy - Define ACC's strategy, and evaluate its potential
for success.
6. Cooperative Strategy - Discuss ACC's strategic alliances and their potential
role in the company's changing competitive situation.

Options and Recommendation - Consider ACC's current options, and based on

the complete strategic assessment, provide suggestions for addressing the
company's operational challenges and dynamic business environment.
Week 5: Analyzing the Firm 2/25 – 3/3 DELTA CASE. Questions due in BLACKBOARD DISCUSSION FORUM

Ch 4 You just got off of the phone with Gerald Grinstein, CEO of Delta Airlines. He
has briefed you on the immediate challenges facing the company. As a
management consultant, you have been asked to present a strategic
management framework to his top leadership team to facilitate analysis of Delta's
situation and to help the company address its urgent strategic issues. You've
agreed to cover the following topics during an upcoming meeting.

Industrial Organization (I/O) Model

2. External Environmental Analysis

3. Elements and Objectives of Delta's Strategy
4. Growth Options: Cooperative Strategy; Acquisition Strategy
5. Resources to Support Strategy
6. Recommendations

You plan to provide Grinstein with a 10-minute overview and a written report of
 your material at least 3 days prior to the meeting.

Week 6: Business Level Strategy 3 / 4 – 3/10 GAP CASE

Ch 5 Questions due in BLACKBOARD DISCUSSION FORUM

Glenn Murphy, Chairman and CEO of Gap Inc., has asked your consulting firm,
Goldman Sachs, to participate in a meeting of his top managers to discuss the
salient strategic challenges facing the company. The meeting agenda includes
the following items:

Strategic and Competitive Issues

II. Strategy and Leader Effectiveness

III. Measuring Success and Establishing Controls
IV. Vision and Mission
V. Strategic Options
VI. Recommendations

An expert at growth through innovation and acquisition, you have been asked to
both participate in the meeting and to provide a presentation (during the
Strategic Options portion of the meeting) which will examine the potential for Gap
Inc. to use internal innovation and an acquisition strategy to address its
competitive challenges.

To familiarize yourself with Gap's situation and prepare for the discussion, you
need to review the background information that Murphy has provided and
evaluate the environmental forces that have strategic implications for the
company's future. Although you are not an industry specialist, you will need to
be prepared to recommend actions for Gap Inc. to pursue growth opportunities
and to maximize firm performance and value.
Week 7: Multiproduct Strategies 3/11 -3/17 JET BLUE CASE

Ch 6 Questions due in BLACKBOARD DISCUSSION FORUM Faced with a

complex set of challenges, David Barger has replaced founder David Neeleman
as the new CEO of JetBlue. As operating and competitive issues continue to
apply pressure on the company, he has the daunting task of defining a strategy
that will secure a solid position in the airline industry and return the company to
profitability. You are a valued member of his management team, and Barger
has asked you to be involved with evaluating the company's strategic approach
and its ability to drive desired results.

Knowing Barger's reputation for being organized, you plan to take the following
steps to prepare for a meeting with his top leaders.

1. Summarize the critical strategic issues that require immediate attention

from Barger and his management team.
2. Describe the role that strategic leadership and management will play in
helping Barger and the organization meet its strategic objectives.
3. Perform an assessment of the external environment to understand the
industry and competitor environments.
a. Use the five forces model of competition to analyze the industry.

Determine what can be learned from conducting a competitor analysis.

4. Based on your knowledge of the company, identify factors within the

internal environment that have strategic implications.
a. Define the company's strengths and weaknesses.

Perform a value chain analysis to identify value-creating capabilities within the

company.

5. Describe the initial success of JetBlue's business-level strategy and ways

that diverging from the strategy are impacting performance results.
 6. Determine how JetBlue can successfully position itself in terms of the five
forces analysis to confront competitive realities in the industry and
outperform its rivals.

Be prepared to discuss your analysis, findings, and recommendations with

Barger and the rest of his management team. The purpose of the upcoming
meeting is to encourage a full discussion of the issues facing JetBlue and to
develop an achievable strategic plan.
Week 8: Acquiring and Integrating Businesses EBAY CASE Questions due in BLACKBOARD DISCUSSION FORUM

Ch 7 What is your reaction to eBay's decision to use an equity alliance with TOM
Online as its strategy in China?

2. What are some of the relevant conditions in the external environment which
will influence the success of eBay's strategy?
3. What are some of the relevant factors within eBay which will influence the
success of eBay's strategy?
3/18 – 3/24
4. How can eBay maximize the value of its joint venture with TOM Online and
increase the likelihood that the alliance will help to achieve the company's
vision?
5. What conclusions can you draw from your situation analysis? What
additional recommendations can you make to ensure that an integrated and
coordinated set of commitments and actions will exploit the company's core
competencies and maximize value for eBay?

Week 9: Competing Across Borders MIDTERM TEAM STRATEGIC PLAN PAPER AND PPT PRESENTATION
3/25 – 3/31
Ch 8 WINTEL SIMULATION STARTS NOW!
Week 10 4/1 – 4/7 WII CASE Questions due in BLACKBOARD DISCUSSION FORUM

Competitive Rivalry in the Videogame Industry - Use the five-forces model of

7competition and competitor analysis to stage Nintendo's strategic approach.

Capabilities - Describe the role of internal resources in selecting and supporting

the implementation of the company's business strategy

Strategic Compatibility - Discuss the ways that Nintendo's business strategy is

 appropriate for the company's current internal and external environmental
conditions.

Innovation - Evaluate Nintendo's use of innovation as a means of market entry

and market creation.

Lessons Learned - Discuss problems that Nintendo encountered in executing its

strategy and how to overcome implementation obstacles.
Week 11: Innovating through Strategic 4/8 – 4/14 LEGO CASE. Questions due in BLACKBOARD DISCUSSION FORUM
Entrepreneurship
LEGO Group came out of the red with positive results in 2005, and performance
Ch.10 in the first quarter of 2006 is following the same trend. After a painful
restructuring, LEGO has revived promising product lines and installed a new
management team. With profitability back on track, the company can now re-
focus on revenue growth. As Vice President of Business Development, you are
charged with identifying potential growth opportunities for LEGO Group. After six
months in the role, you have identified a number ways to leverage growth
through current activities.

Because unchecked growth strategies in the past nearly led the company to
bankruptcy, you anticipate some resistance from LEGO's top managers. To
alleviate their likely concerns, you want to sort through the challenges associated
with exploiting several exciting new opportunities before making specific
recommendations to the rest of the executive team.

Your analysis includes following material:

Review LEGO's business strategy and the internal strengths it draws upon.

2. Outline the strategic moves LEGO has taken to confront competitive threats
in the company's external environment.
3. Summarize the strategic challenges facing the executive team at LEGO.
4. Define the network of stakeholders which needs to be managed to achieve
the company's growth objectives.
 5. Establish a set of recommendations for managing the innovative efforts,
being pursued both internally and through cooperative alliances, to drive the
company's future growth and to ensure that they are aligned with the vision
and values of the organization.

To facilitate a discussion of your suggestions with the top management team,

prepare an overview presentation which can be used to open a meeting with
LEGO's leaders, and frame the critical strategic issues which need to be
resolved.

SPRING BREAK 4/17 – 4/26

Week 12: Building an Entrepreneurial Business 4/27 -5/4 MATTEL CASE

Questions due in BLACKBOARD DISCUSSION FORUM

Mattel has recently discovered safety violations for several of its toys and is
faced with multiple recalls. Despite the company's experience with previous
product recalls, the current situation is particularly unique, complex, and
challenging. CEO Bob Eckert is tapping all of his internal resources to address
the crisis, but has also invited your consulting firm to advise his management
team on establishing a plan to minimize the negative consequences of the recall
and to restore confidence in the company's strategies. Assigned to the project,
you have been asked to evaluate Mattel's situation and prepare a report with the
following content:

Review Mattel's vision and mission statements as well as the company's

corporate responsibility platform.

2. Discuss the competitive forces that influence profitability potential in the toy
industry.
3. Discuss Mattel's outsourcing strategy and the role that it plays in Mattel's
value chain.
4. Discuss the importance of innovation to Mattel's success.
 5. Review the risks and challenges associated with product recalls and
recommend a course of action for Mattel.

Be prepared to discuss your analysis and findings with your consulting team to
formulate a final set of recommendations for Eckert and his top managers.

Week 13 ” 5/6 – 5/12 NABORS CASE

Questions due in BLACKBOARD DISCUSSION FORUM

Since you joined Nabors Industries as Chairman and CEO in 1987, your
employment contract has remained essentially the same, with its specific terms
being occasionally adjusted to reflect changing financial conditions at the
company. When you were named the 8th highest recipient of stock option gains
in the Wall Street Journal's December 2006 article, your compensation package
came under heavy scrutiny from the business community and the general
public. A Nabors spokesperson has now described your remuneration to be
"beyond expectations", given the extraordinary success of the company.

You are scheduled to meet with the board of directors next week, and with so
much attention on executive compensation, you are certain that the board
intends to propose restructured contract terms moving forward. Although you do
not feel the need to justify the rewards that you have received for past
performance, you do have an ownership stake in the company, and you do want
to approach the issue from a position of strength.
As you review your records, you are reminded of Nabors' challenges and
successes over the years and believe that you can build support to substantiate
a compensation arrangement that is satisfactory to all parties.

Consider the components of your initial 1987 contract with Nabors Industries.
Was the remuneration package appropriate given the needs and goals of the
organization at that time?
 2. Examine the elements of your turnaround plan. How well did the plan
address current strategic issues facing Nabors?
3. Compare the compensation you received during the initial contract
period with the results achieved by the company. Was the reward
commensurate with the gains realized by Nabors during the same
period?
4. Nabors Industries was in a substantially different financial position five
years after you joined the company. Were the changes in your second
contract appropriate, or should the board have designed your
compensation package differently?
5. Compare the compensation you've received since 1992 with the
results achieved by the company. Was the reward commensurate with
the gains realized by Nabors during the same period?
6. Consider the role that stock options play in compensation packages
and review the use of performance-accelerated vesting, repricing, and
reloading to enhance the terms of your stock options. Do these
practices serve the interests of Nabors' shareholders? Are they ethical?

What changes to your contract do you anticipate the board to propose? Given
your personal and ownership interests, what concessions are you willing to make
to come to agreeable employment terms moving forward?

Week 14 5/13 DUE: FINAL TEAM PRESENTATIONS

Week 15 5/15 FINAL INDIVIDUAL PAPER
5/17 FINAL EXAM

MIDTERM TEAM STRATEGIC PLAN PAPER AND PRESENTATION: Each team will complete a strategic plan, using the tools taught in the course, for a case study
company to be assigned. RUBRIC will be posted to the Course Information Area.

FINAL TEAM STRATEGIC PLAN PAPER AND PRESENTATION: Following Problem-based learning methodology, the professor will require students to rethink
and redo the Midterm Strategic Plan based on fundamental or required changes in assumptions made at midterm. RUBRIC will be posted to the Course
Information Area.

FINAL INDIVIDUAL PAPER: Mermo to CEO recommending adoption of a new strategy. Students will need to analyze a given case using the tools taught in the
course before making and defending their recommendation. RUBRIC will be posted to the Course Information Area.