University of Baltimore

UNIVERSITY OF BALTIMORE

ROBERT G. MERRICK SCHOOL OF BUSINESS

MGT. 640: STRATEGIC INNOVATION AND RENEWAL

SUMMER 2002 DR. V. LUCHSINGER

OFFICE: BC 553

Office Hrs: by appointment PH. 410-837-5031

E-Mail : FAX: 410-837-5675

URL= http://ubmail.ubalt.edu/~vluchsinger

COURSE DESCRIPTION:

This course will address the dynamics of an evolving organization. General topics include: vision and competitive strategy, stakeholder and value chain relationships; benchmarking; product and process improvement; performance assessment and evaluation; statistical tools for diagnosis and improvement; corporate governance, and organizational and financial restructuring; leadership and change; empowerment of human resources; and valuation of the firm.

Prerequisite: Concurrent or prior enrollment in MKTG 640.

Or---Consent of instructor.

PURPOSE AND OBJECTIVES:

The purpose of this capstone type course is to enhance the graduate student's understanding of ongoing Organizational Management in the very complex and unstructured setting in which business operates. As a follow-on to MKT 640, this course concentrates on the process of adding value to achieve competitive advantage through innovation and change processes in a learning organization context.

The major themes of this course will be:

1. Competitiveness in the appropriate marketplace.

2. The concept and process of adding value.

3. Change processes reflecting innovation and renewal.

Remember that this course material is being lived and written as we meet and speak. It’s about changing to meet challenges and requirements. This requires that we be informed

The objectives of the course are:

1. To acquire a deeper understanding of the role of purpose and strategy in the management of complex organizations seeking improvement.

2. To relate the functional areas of business to the needs of the organization as a whole and the various publics it serves.

3. To strengthen analytical and problem solving skills leading to continuous improvement in complex, unstructured situations.

4. To study the nature and extent of the tasks of general management, particularly in global organizations.

5. To develop oral and written communication skills at the professional level, and to polish group and personal effectiveness skills.

6. To explore the impact of personal goals, values, ethics, and attitudes on individual and organizational performance.

7. To develop the ability to perform research in the Business Organizational Management area.

8. To develop skills in using computers to attack business problems and enhance quality.

PROFESSIONAL COMPETENCIES TO BE ACQUIRED:

1. The understanding and use of change, strategy, and vision as a means of competition in learning organizations.

2. Making business decisions in cross-functional settings.

3. Effectiveness in working in group settings.

4. Awareness of environmental and global influence on business strategy (especially through simulation and cases).

5. Development of ethical and value understandings underlying business decisions and activities.

6. Personal development in leadership, communication (oral and written), and career capabilities.

7. An appreciation of quality, change, and process innovation options for personal and organization strategy.

REQUIRED TEXTS:

STRATEGIC MANAGEMENT: Competitiveness and Globalization. Hitt et.al.(4ed), 2001

REQUIRED READING:

Fortune; optionally Wall Street Journal and Business Week

Assigned articles as handouts or library references. Assigned cases are in the text.

RECOMMENDED READING: Porter's Competitive Advantage of Nations

EMPHASIS OF THE COURSE:

Strategic Management Concepts and Analysis 30%

Analysis of Cases 25%

Corporate Culture and Personal Effectiveness 15%

Management of Change 30%

CONDUCT OF THE COURSE:

This course will consist of lecturettes, reviews of reading and cases by students, and class discussion. Peer evaluations of group members will be sought periodically.

In the schedule for this term, you will find the date, the topics for my presentations and the readings for which you are responsible in the assigned texts. Note that not all the assigned reading will be discussed in class, but is still the responsibility of the student.

Each week an acclaimed contemporary piece of business literature will be presented and listed [TITLE - AUTHOR]. Handouts will support discussion of the work.

STUDENT RESPONSIBILITIES:

1. Evidence of mastery of assigned reading. One-page "issue" memos will be submitted on cases as assigned.

2. Successful completion of examinations.

3. Contribution to discussions on class topics.

4. Display of acceptable communication skills. Grammar/spelling mistakes will be penalized.

5. Faithful attendance is expected. The third unexcused absence will result in a grade decrement.

6. Leading discussion on class cases or topics as assigned by team.

7. It is expected students will abide by the University rules on plagiarism and cheating as outlined in the University of Baltimore Students Handbook.

GRADING PROFILE FOR THE COURSE

a. Mid-term examination (individual) 100 points

b. Final examination (individual) 100 points

c. Memos and participation (individual) 50 points

d. Research Paper (individual) 150 points

e. Industry Analysis (group) 50 points

______

TOTAL 450 points

[The outline of the course will accompany separately.]

TOPICS TO BE COVERED IN THE COURSE BY SESSION: MGT 640 Summer 2002

Date Topic/Activity Reading Assigned

29 MAY / Introduction to the Course
Strategic Management and Strategic Competitiveness, The Global Economy, Stakeholders, Technology changes
Introduction to Organization Quality
Michael Porter Video / Hitt-Chap.1
3 JUN / External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis, Competitive Intelligence
Memo on Selected Business Topic Due (1 page)
Review Situation Analysis PowerPoint on the site : http://home.ubalt.edu/ntsbluch/
[STRATEGIC INTENT - PRAHALAD] / H-2,
5 JUN / Internal Environment: Resources, Capabilities, and Core Competencies, Focus, Resources, Capabilities, Value Chain Analysis, Outsourcing Getting Ready to Change,
Driving forces, Key Success Factors
http:fortune.com for Most Admired Companies
[COMPETITIVE INTELLIGENCE-KAHANER] / H-3
10 JUN / Business-Level Strategy {Cost Leadership, Differentiation, Focus}
The Value-Chain and Organizing for Quality
Creating Tomorrow
> Amazon.com Case [Driving Forces Memo,(1 page)]
[LEADING CHANGE-KOTTER] / H-4
12 JUN / Corporate Level Strategy
Diversification,, Restructuring, Downscoping
Vision for Change
> Starbucks Case [Key Success Factors Memo (1 page)]
[DISCIPLINE OF MARKET LEADERSHIP- WEIRSMA] / H-6
17 JUN / Acquisition and Restructuring Strategies
Pace and Expectations for Change, Mergers, Buyouts, Downsizing
>Nucor Case
[JACK WELCH SPEAKS] / H-7
19 JUN / International Strategies, Opportunities, and Risks
Value Issues, Exporting, Licensing, Strategic Alliances, Political and Economic Risk
> ABB in China Case
[COMPETITIVE ADVANTAGE OF NATIONS-PORTER] / H-8
24 JUN / EXAM I
26 JUN / Cooperative Strategies
Business, corporate, and International Level Strategies
Partnering and Alliances, Network Strategies
> Cisco Systems Case
[MANAGING AT THE SPEED OF CHANGE-CONNOR] / H-9
1 JUL / SPEAKERS
Industry Analysis Due on Internet Industry
3 JUL / Corporate Governance
Boards of Directors, Executive Compensation, Multi-divisional Structure, Ethical Behavior, Agency Problems
Balanced Scorecard
Organization Structure and Controls
Simple, Functional, and Multidivisional Structures, Strategic Business Units, Strategy and Structure
> Compaq in Crisis Case
[BALANCED SCORECARD-KAPLAN] / H-10
H-11
8 JUL / Strategic Leadership
Strategic Focus and Direction, Developing Human Capital, Process Innovation and Reengineering, Learning Organizations
People and Culture in Change
> Southwest Airlines Case
[LEARNING ORGANIZATIONS] / H-12
10 JUL / Corporate Entrepreneurship and Innovation
Empowering Change
Managing Innovation, Acquisition, and Venture Capital, Internal Corporate Venturing, Work Teams , and Integration
[BUSINESS @ THE SPEED OF THOUGHT-GATES] / H-13
15 JUL / Presentations, Turn-In of Projects
17 JUL / Presentations, Final

TOPICS TO BE COVERED IN THE COURSE BY SESSION: MGT 640 Summer 2000

AMBA/CXMBA

Date Topic/Activity Reading Assigned

17 JUL / Introduction to the Course
Strategic Management and Strategic Competitiveness, The Global Economy, Stakeholders, Technology changes
Introduction to Organization Quality
Michael Porter Video / Hitt-Chap.1
24 JUL / External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis, Competitive Intelligence
Memo on Electronic Commerce Topic due (2 pages)
Michael Porter Video
[STRATEGIC INTENT - PRAHALAD] / H-2,
31 JUL / SPEAKER- J.C. WEISS on VENTURE CAPITAL
Corporate Entrepreneurship and Innovation
Empowering Change
Managing Innovation, Acquisition, and Venture Capital, Internal Corporate Venturing, Work Teams , and Integration
/ H-13
7 AUG / Internal Environment: Resources, Capabilities, and Core Competencies, Focus, Resources, Capabilities, Value Chain Analysis, Outsourcing, Getting Ready to Change,
Driving forces, Key Success Factors
> Starbucks Case [Industry Driving Forces Memo (1 page)]
[COMPETITIVE INTELLIGENCE-KAHANER] / H-3
14 AUG / Business-Level Strategy {Cost Leadership, Differentiation, Focus}
The Value-Chain and Organizing for Quality
Creating Tomorrow
> Amazon.com Case [Industry Key Success Factors Memo(1pge)]
Corporate Level Strategy
Diversification, Restructuring, Vision for Change, Downscoping
[LEADING CHANGE-KOTTER] / H-4
H-6
21 AUG / Acquisition and Restructuring Strategies
Pace and Expectations for Change, Mergers, Buyouts, Downsizing
Industry Analysis Due on Internet Industry
[JACK WELCH SPEAKS]
International Strategies, Opportunities, and Risks
Value Issues, Exporting, Licensing, Strategic Alliances, Political and Economic Risk
> Warner Lambert Case
[COMPETITIVE ADVANTAGE OF NATIONS-PORTER] / H-7
H-8
28 AUG / EXAM I
5 SEP / Corporate Governance
Boards of Directors, Executive Compensation, Multi-divisional Structure, Ethical Behavior, Agency Problems
[MANAGING AT THE SPEED OF CHANGE-CONNOR]
Strategic Leadership
Strategic Focus and Direction, Developing Human Capital, Process Innovation and Re-engineering, Learning Organizations
People and Culture in Change
Southwest Airlines Case
[LEARNING ORGANIZATIONS]
Turn-In of Projects / H-10
H-12

CONSIDERATIONS IN THE USE OF SIMULATION GAMING

Simulation gaming has many advantages for integrative courses by simulating firms in an industry to give the students the chance to make decisions and live with the consequences. This simulation is performed over the entire semester to illustrate the long term effects of business strategy and to introduce course themes into the conduct of the simulation. The use of international markets, finance, and production incorporates global elements into the decision making.

BUSINESS SIMULATION GAMING

1. Students learn to "put their money where their mouth is" by making decisions over longer term under risk, and whose consequences they will have to live with.

2. Students learn to become analytic using data and putting numbers together from marketing, finance, and production to make decisions.

3. Students compete against each other in company teams, as well as to attempt to cope with the economic model established by the instructor.

4. The student decisions are made in the context of behavioral factors that affect the function of the student company team.

5. An entrepreneurial spirit is generated by the excitement of the game.

STUDENT BENEFIT FROM GAMING

Students benefit from simulation by a stronger command and appreciation of:

1. Crafting a business strategy that integrates marketing, production, financial, and human resource aspects.

2. How globally competitive markets work.

3. The importance of sustainable competitive advantage.

4. The value of doing what-if tests, sensitivity analyses, and studying the numbers to determine the most appropriate strategy.

5. The trade-offs that sometimes have to be made between preserving short-term profitability and the longer term need to strengthen a company's competitive position.

6. Watching markets, evaluating changing conditions, assessing business risk, and making strategic adjustments.

7. Why, when, and how to do competitor analysis.

8. How both offensive and defensive moves enter into the strategic process.

9. How tariffs and fluctuating exchange rates play an important role in creating competitive advantage and disadvantage in global markets.

10. The managerial value of long-term strategic thinking, 5-year strategic plans, and ongoing strategy reviews and updates.