corporate strategynus business school.docx

NATIONAL UNIVERSITY OF SINGAPORENUS BUSINESS SCHOOLBMA 5013 Corporate StrategySpecial Term 1, 2012Instructor:Kulwant SinghMRB #06-146516 3164Kulwantnus.edu.sgIntroductionThis module focuses on the central question in business how can an organization achieve success? We will address this question from the perspective of a leader who heads a unit or an organization, and evaluate what the leader does to achieve success for his or her organization. We will concentrate on the strategic responsibilities of leaders and focus primarily on firm and business success.We will introduce concepts and frameworks that are rooted in the theory of strategy and management, which have proved valuable in practice. Key concepts relating to strategy, competition, competencies and customers will be combined with analyses of choices firms make to achieve their intent. We will also discuss what managers often describe as their greatest challenge - implementing strategy. We will focus on the thinking, skills and actions required of manager for the development, communication and implementation of strategic organizational choices towards organizational success.Our assumption is that firms operate in complex, changing and global environments. We will specifically focus our discussions on Asia, and will attempt to integrate current events into our discussions. We will deal primarily with issues of organizational effectiveness rather than organizational efficiency - or as Peter Drucker wrote, with "doing the right things'' rather than "doing things right.''Your experience as leaders is valuable and integrating this experience with strategy concepts and models will provide useful insights. Just as the work of the general manager crosses all functional areas, this module builds on your knowledge of business developed in other modules and on the job.  You should focus on adapting all our discussions to your specific context and organization.ObjectivesThis module aims to achieve the following:1. Clarify the concept & application of strategy in a variety of business contexts, particularly Asia.2. Demonstrate the importance and centrality of strategy in the work of leaders.3. Identify the firm and environment related factors that determine firm success.4. Introduce frameworks that facilitate strategic thinking and action.5. Introduce a variety of tools and techniques that can help students develop the skills and knowledge to identify, evaluate and select between options in a range of competitive business situations.6. Discuss the roles of leaders and strategy in the area of sustainable business. 7. Encourage participants to develop an interest in strategy and their own view of how strategy can help them and their organizations achieve success. Teaching ModesThere will not be any lectures in this module. All class material will be distributed on IVLE ahead of time. Students are expected to review this material and the assigned readings, so that they are ready to participate actively in the learning in class. The instructor will highlight key aspects of the material and focus on elaborating on important details, but will try to avoid extensive lectures.We will also start every lesson by discussing current business events that relate to strategy. The aim is to provide an opportunity to apply concepts and frameworks, to evaluate their relevance and applicability. Ideally, this will allow us to understand underlying issues, predict what will happen and demonstrate the value of strategy.One problem with studying strategy is the volume of available material, much of it from popular sources. Unfortunately, practitioners, consultants and some well-intentioned authors often inappropriately generalize from very specific experiences, limiting the value of this material. Others use new language to describe well-established concepts to suggest new ideas where there are none. To avoid falling into this trap, we will rely on the large and growing base of strategy research to support our propositions and "principles."You will be required to read only a narrow slice of this material, to understand key concepts and frameworks. In addition, a small number of research-oriented optional readings are provided, for those interested in exploring the very large base of strategy theory and research from which we draw our core ideas. These will be complemented with light newspaper articles. All optional readings are in IVLE. Another aspect of our discussions will be to avoid using or introducing any term that is not found in the dictionary or that is not in common daily use. The aim is simple - to avoid jargon, fads and complex terminology, so that we can focus on core principles, concepts and key determinants of firm success.Text and ReadingsWe will use the following as our text:Singh, Kulwant and Andrew Delios. 2005. Strategy for Success in Asia. John Wiley (S&D).We will also use selected cases from the following:Singh, K., Pangarkar, N., & Heracleous, L. 2010. Business Strategy in Asia: A Casebook. Cengage (SP&H).There are many other excellent books and readings on strategy, which we will use as indicated in the schedule or which we will highlight in class. There are obviously many excellent print and online sources. The following represent a very limited selection that busy MBA students should consider: The Economist. This is the best source of reliable business and strategy news and analysis. Print and on-line subscriptions (economist /) are highly recommended. A useful option on the Economist website is a summary of what the more serious business journals publish, which is available at economist /business/globalexecutive/.The Financial Times. Print copies are available free in the School. A subscription is required for most of the best online content: news.ft /home/rw/.Global Business. An excellent but under-utilized source of outstanding radio programmes on the BBC. Podcasts are available at bbc.co.uk/radio/podcasts/worldbiz/. YaleGlobal. A useful source of brief but thoughtful articles on global business and political trends is: yaleglobal.yale.edu.Globalist. Another useful source of screened content relating to global business and broader trends. theglobalist /emails/current.html.The major strategy consulting firms now offer free access to their journal. It may be useful to enroll on Mckinsey's list here: mckinsey  Finally, several academic institutions provide useful links and access to information resources. knowledgewharton (knowledge.wharton.upenn.edu) provides current and thoughtful articles. The HBR and its online option (hbr.org) are useful.ScheduleSESSION 1: Strategy Concepts And Key FrameworksThe concept of strategyLeadership and Strategy Frameworks to guide strategic thinking and actionPre-class Puzzle Is business success random? If it is, you cannot predict or prepare for success, so why study firms or strategy? If success is not random, it must be possible to identify the predictors of business success. What are these? Class ExerciseDeterminants of firm successReadings S&D, Chapter 1: Strategy Optional ReadingsA strategic approach for firmsReview strategy, take crisis as opportunitySession 2: Strategy for SuccessStrategy and successApplying strategy tools and concepts to a complex case Strategy and sustainable business Pre-class Puzzle Why, despite the importance of the issue, do we know so little of what determines firm success? Or, if the determinants are clear, why don't all firms focus on these factors? What prevents all firms from converging on the same strategies? Why are so many senior managers (including your bosses?) unable to articulate their strategy?Class exerciseOur first session and Chapter 1 of S&D introduced a framework for developing strategy. How would you improve this framework? Case SP&H, AirAsiaWhat explain AirAsias success? How sustainable is AirAsias success?How could competitors overcome AirAsia?Readings Are you sure you have a strategy? Hambrick & Fredrickson. Optional ReadingsStrategic givingSession 3: Industry Analysis 1The importance of industry structure Introduce the basic model for industry analysis Identify the implications of industry structure Pre-class PuzzleIs competition good or bad? Why?Case AnalysisSP&H, The Liner Shipping Industry  What explains the poor profitability of the Liner Shipping Industry? Why do so many firms continue to operate in this industry? ReadingFive competitive forces that shape strategy. Porter.Session 4: Industry Analysis 2 The CAPRI model Cost and differentiationIndustry dynamicsPre-class Puzzle If you (and your firm) were not already in your industry, would you enter it now? Which industry would you enter now and why? Reading Blind spots in competitive analysis. Zahra & Chaples.Session 5: Resources and CompetenciesResources and competencies The value chainThe Scope of the firmPre-class Puzzle How do some firms with limited resources become highly competent and successful while other better endowed firms fail to develop competencies? Refer back to the AirAsia case. What are AirAsia's competencies? What role do its strategy and structure play in the development and maintenance of these competencies?  ReadingsDeveloping consensus on firm competencies and capabilities. Marino.Optional ReadingsDiversify or die-versify?Research note Differentiation*Group integration project proposals to be submitted at the end of session 6*Session 6: Competencies and Strategy Competencies as the key driver internal driver of strategy Building dynamic Competencies Pre-class Puzzle Should a firm define its competencies and use these to achieve success in an appropriate industry? Or, should a firm understand its industrys characteristics and ensure that it has the necessary competencies to achieve success?Optional ReadingsChallenges of diversification for SMEsResearch note - Technological Complexity*Individual assignments are to be submitted before the end of Session 7*Session 7: Strategy and Key Business Trends in Asia Key characteristics and trends in Asia The business environment in Asia Business opportunities in Asia Pre-class Puzzle Asia has had about four decades of very high growth rates. What does the future hold? Will Asia become more like the “West” or will it evolve differently?Class ExerciseWhat are the most important positive and negative characteristics of Asia? How will these change over the next decade? ReadingsS&D, Chapter 2, Strategy in Asia.Optional ReadingsPost-crisis Asia: Opportunities and Challenges Session 8: Strategy in the Asia Pacific Key drivers of strategy in Asia  A model for strategy in Asia Pre-class Puzzle Identify “world class” consumer (as opposed to industrial) firms from Asia. Why are there so few from outside Japan and South Korea? Class Exercise:Identify a framework for strategy in Asia Optional ReadingsKnowing the rules of doing business in AsiaResearch note - Guided CompetitionSession 9: Growth Strategies The importance and risks of growth How firms can grow Strategies for growth Pre-class Puzzle What are the consequences of growth? Greater profitability and success are possible outcomes. What are other outcomes?  ReadingsS&D, Chapter 5, Strategies for profitable growthOptional ReadingsMore than just Growing Sales Overseas: Singapore Firms abroadResearch note - Death of LethargicResearch note - Pre-Entry AlliancesSESSION 10: ALLIANCESThe benefits and risks of alliances  Successful alliances Strategy, competencies and alliances Pre-class Puzzle Are all alliances strategic? If alliances offer significant benefits, why do a majority end within about five years?  CasesMini-cases will be handed out in classReadingsS&D Chapter 6. Alliances for success.Optional ReadingMore than just Growing Sales Overseas: Singapore Firms abroadResearch note - Precarious CollaborationResearch note Growth dynamicsSession 11: AcquisitionsSuccessful acquisitions Key determinants of successful acquisitions Pre-class Puzzle More than any other strategic move, acquisitions destroy value. Yet they continue to be popular. Why? Acquisitions also often occur in waves, with a significant acquisition followed by more within the same industry. Identify a recent acquisition that you think will be followed by a wave. Case Tata Motors (A): Acquisition of Daewoo Commercial Vehicles Company What did Dawoo Commercial Vehicles want from this deal?What did each Tata Motors want from this deal?What lessons does this case offer for acquisitions?ReadingsS&D, Chapter 7, Acquisitions for successSESSION 12: Implementing StrategyThe challenges of implementing strategy Key drivers of successful implementation  A framework for implementing strategyPre-class Puzzle Many practitioners claim that it is easy to formulate strategies - the real challenge is to implement strategies. Yet they seem to put most of their efforts in formulating visions, and at times, developing strategy, while putting little effort in implementing strategy. Why?Class ExerciseDevelop a framework for implementing strategy.   ReadingsSecrets to successful strategy implementation. Neilson, Martin and Powers.Session 13: Strategy, Structure and Implementation The strategy-structure relationshipLeadership and strategy implementationCase Tata Motors (B): Integration of Daewoo Commercial Vehicles CompanyWhat did Tata do to implement its acquisition?How effective was Tata?Module SummaryAssessment The best measure of your learning on this module is improved knowledge and understanding of business strategy and improved performance on your job. Both of these will surely follow from this module, though it may take some time will before the latter is recognized and rewarded.Obviously, it will be useful to provide you with an opportunity to evaluate your learning in real time. For this purpose, we will adopt the following assessment scheme:Class participation: 30%Individual assignment: 40%Group integration project: 30%Class participation will be based on the quality of contributions to the class. Students may choose not to participate but in this event, they should not expect any credit for class participation. Repetition, deviation and distraction will not be rewarded.The individual assignment is to undertake a “3Cs analysis” to develop your firms strategy. Specifically, you are to identify your firms strate