BUS 499Business Policy and Strategic Solutions

Fall II 2007

INSTRUCTOR: Dr. Bob Castaneda

PHONE:312-498-2028

EMAIL:rcastaneda@argosy.edu

FAX:312-945-3169

REQUIRED TEXTS:

Title Strategic management: Creating competitive advantages Author(s) Dess, Lumpkin, & TaylorCopyrightPublisher McGraw-HillISBN 0-07-287290-XEdition (2nd edition)

This Course Requires the Purchase of a Course Packet: YES NO

Argosy UniversityCOURSE SYLLABUS

BUS499Business Policy and Strategic Solutions

Faculty InformationFaculty Name: Bob CastanedaCampus:

Contact Information: Phone: 312-498-2028 - Fax: 312-945-3169 - Argosy Email: bobcastaneda@att.netOffice Hours: 9AM to 10PM Mon-Fri - 9AM to 5PM Saturday

Short Faculty Bio: Roberto Castaneda received his graduate degree (DBA) in Accounting from Argosy University/Schaumburg; (MM/MBA) in Marketing and Finance from Northwestern University, and his undergraduate degree in Accounting and Marketing from DePaul University. He is also a Certified Public Accountant. Dr. Castaneda has worked in senior finance positions at American Express, PepsiCo and McDonald’s Corporation in a number of international countries.

Course description: This integrative course is the culmination of the Bachelor Science in Business Administration Degree Completion program and focuses on analyzing a company’s current strategy, performance, and results. Students investigate the external environment, industry dynamics, and competitive forces in a strategic business plan. Attention is given to special issues, topics, and challenges faced by those making corporate strategy. This course must be taken in the students’ final semester.

Course Pre-requisites: None

Required Textbook:

Dess, Lumpkin, & Taylor. Strategic management: Creating competitive advantages (2nd edition). McGraw-Hill. ISBN: 0-07-287290-X

Technology: Pentium III CPU/ Windows 98; 128MB RAM, printer; Microsoft Office Acrobat (full version), Microsoft Internet Explorer 5.5 (PC) 5.0 (MAC) or Netscape Navigator 4.08. Norton Antivirus.

Course length: 7.5 Weeks

Contact Hours: 45 Hours

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Credit Value: 3.0

Program Outcomes:

1. Communication1.1 Communicate business concepts effectively, both written and orally appropriate to the audience

2. Team2.1 Define the attributes of an effective team member and leader and the characteristics of an effective team in reaching specific business goals

3. Cognitive 3.1 Problem Solving – Given a business problem, select and defend a business solution chosen from specific alternatives 3.2 Information Literacy – Given a business research question, access information from a variety of sources, select appropriate sources to respond to a

business question4. Analysis/Application

4.1 Integration – Describe the interrelationship of the functional business areas of statistics, accounting, operations, finance, marketing, and strategy5. Ethics/Diversity

5.1 Diversity – Identify the issues and challenges related to diversity in current business organizations5.2 Ethics – Identify the issues and challenges related to ethics in current business organizations

Course Objectives:

1. Strategic Management Process: Work individually and in teams to gather information and apply the tools and process of strategic management to create sustainable competitive advantage for a firm (Program Outcome(s): 1, 3.1, & 4)1.1. Understand the three key phases of strategic management.1.2. Determine the relationship between/among mission, vision, goals, and strategy.1.3. Articulate and identify when to use the appropriate analytical tools during the strategy analysis phase of strategic management.1.4. Articulate and identify when to use the appropriate analytical tools during the strategy formulation phase of strategic management.1.5. Articulate and identify when to use the appropriate analytical tools during the strategy implementation phase of strategic management.1.6. Apply ethical reasoning and ethical principles throughout strategic management process.

2. External Environment Analysis: Work individually and in teams to gather information and conduct an analysis of a firm’s external environment for use in its strategy formulation. (Program Outcome(s): 4)2.1. Understand and apply environmental scanning to understand the dynamic forces that impact companies in the industry.2.2. Apply the Five Forces Model of Competition to the Industry and how the concept of the value-net has modified this analysis.2.3. Apply the concept of strategic group mapping to further clarify competition within an industry.2.4. Apply ethical reasoning and ethical principles in gathering competitive intelligence in this phase of the strategic management process.

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3. Company Situation Analysis: Work individually and in teams to gather information to assess the effectiveness of firm’s current strategy and current situation using a variety of analytical tools. (Program Outcome(s): 4, & 5.2)3.1. Determine the effectiveness of current strategy by identifying its key elements and how the firm is performing vis a vis key performance

indicators and its competition.3.2. Identify significant trends or patterns in the firm’s financials that impact strategy.3.3. Conduct a SWOT analysis to summarize findings from company situation analysis (internal) and external environment.3.4. Interpret SWOT analysis and expand on it by reviewing resources, capabilities and fit with current strategy. 3.5. Identify firm and industry strategic issues and determine their implications and impact.3.6. Apply ethical reasoning and ethical principles throughout strategic management process.

4. Strategy Formulation: Business Unit and Corporate Level Strategy: Work individually and in teams to gather information to formulate strategic options available to a firm at the business unit level. (Program Outcome(s): 1, 2, 3.1, & 5.2)4.1. Describe the distinction between business unit level strategy and corporate level strategy.4.2. Identify the generic strategies in use in various corporations.4.3. Identify the strengths and weaknesses of each generic strategy and how each addresses the five forces of competition in a particular industry4.4. Articulate how and when a firm can combine the generic strategies of overall cost leadership and differentiation, 4.5. Recognize when a turn-around strategy is needed.4.6. Determine how corporate level strategies create value.4.7. Identify how firms create value through diversification (related or unrelated).4.8. Develop a set of reasonable strategic alternatives and recommend the best course of action for the corporation to pursue; defend with logic and

analysis.4.9. Apply ethical reasoning and ethical principles throughout strategic management process.

5. Entering International Markets and Leveraging the Internet: Work individually and in teams to gather information to determine when international expansion is a viable diversification strategy and how to enter new global markets. Know when and how to apply e-business strategies to grow a business (Program Outcome(s): 4)5.1. Identify the variety of strategies that can be used by firms to enter global markets.5.2. Apply global market entry approach to an individual firm.5.3. Determine how an e-business strategy can improve competitive position.5.4. Leverage Internet and e-business capabilities.5.5. Determine how to create value in global markets.5.6. Apply ethical reasoning and ethical principles throughout strategic management process.

6. Corporate Governance, Leadership, and Ethics: Work individually and in teams to gather information to identify the characteristics needed to create an ethical culture and a learning organization. (Program Outcome(s): 2, 4, & 5.2 )6.1. Understand the role leaders play in creating an ethical culture.6.2. Apply the concept of learning organization to the firm to demonstrate how knowledge can be a source of competitive advantage.6.3. Understand the role a leader’s emotional intelligence plays in an organization.6.4. Describe how corporate responsibility may affect a firm’s performance.6.5. Apply ethical reasoning and ethical principles throughout strategic management process.

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7. Problem Solving: Work individually and in teams to gather information to identify problems and develop a plan for implementing solutions to those problems. (Program Outcome(s): 3.1, & 4)7.1. Develop a business strategic plan which integrates the information and analysis gathered in weeks 1-7 culminating in a Business Plan

document (See Attached Business Plan Template).

Assignment Table

Module Module Topics Readings Assignments1 Key Concepts of Strategic

Managemento What is Strategic

Managemento Key Features of Strategic

Management

Strategic Management Processo Strategy Analysiso Strategy Formulationo Strategy Implementation

Stakeholder Management

Strategic Directiono Visiono Missiono Goals

Dess, Lumpkin, & TaylorChapter 1

Download and review the latest Annual Report from the Carnival Cruise Corporation Web site: http://www.carnivalcorp.com

Review the Word document:

Discussion Questions:

1. Read the Carnival Cruise Line scenario and visit their Web site: http://www.carnivalcorp.coma. Log on to the discussion area assigned to your group.b. Familiarize yourself with each group member. You may exchange e-

mail addresses and phone numbers for easy communication.c. Discuss with the group your view of the project scenario and the

development of the strategic business plan. d. Develop and discuss the project timeline. Reach consensus on the

timeline and assign work so that you have a good idea of all the assignments you will perform during the course of the class.

e. Discuss and formalize as a group:i) The information/data that the plan will contain under the various

sections.ii) A working plan for the entire project.

2. Corporate leaders often encounter cynicism from employees? When leaders announce that they are presenting a “new” mission or vision statement for the corporation. a. Why do you think employees react in this way? b. What can leaders do to avoid this skeptical reaction on the part of

employees and ensure that the new vision/mission is embraced?c. Justify your viewpoint using examples.

3. What happens to corporate performance when the vision, mission, and strategic objectives are not linked? How is alignment achieved? Why do

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strategies fail? Justify your viewpoint using examples.

Click this link for assistance:http://en.wikipedia.org/wiki/Strategic_planning#Why_strategic_plans_fail

Assignments:

1. The Weekly Column: Stakeholder ManagementYou work in a management firm and write a weekly column for a management newsletter. The editor assigns the following topic for your article in for the next week’s edition: “Zero Sum Stakeholder Management Approach vs. Symbiotic Stakeholder Management Approach.”

Utilize publications such as Business Week (http://www.businessweek.com), The Economist (http://www.economist.com), and The Wall Street Journal http://online.wsj.com/public/us and the BBC at www.bbc.com to research and then compile your article into a two-page Microsoft Word document.

Ensure that you include in your article:a. Your viewpoint on the two alternative stakeholder management

perspectives.b. Why you believe the two views exist. Base this on chapter readings,

an understanding of economics, and the prevalence of the “building shareholder wealth and value” view.

c. Why should a manager choose one from the other? What are the consequences to the organization and to the stakeholders of making and exercising a choice?

2. EcomaginationYou work as a manager at TotalSolutions Corp. The Vice President (VP) of your company attended a management conference where the buzzword was “Ecomagination.” The VP wants to know more about it. She asks you to research the subject and send her a memo of your findings.A colleague hints that GE launched Ecomagination on May 09, 2005. From this lead, visit the following Internet Web sites to research the

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concept:

Business Week: http://www.businessweek.comThe Economist: http://www.economist.comThe Wall Street Journal: http://online.wsj.com/public/uswww.ge.com/en/

Compile your findings in a one- to two-page memo addressed to the VP, which outlines:a. What is “Ecomagination” and what is GE doing in this area?b. What prompted the GE leadership to take this approach?c. What outcome or result does GE expect from this approach?d. Is there anything new here or it is corporate PR? Support this with

valid arguments.

View the corporate advertising campaign at:http://www.ge.com/en/company/companyinfo/advertising/eco_ads.htm

3. Final Project Activity 1a: Carnival Corporation: Business Overview for New Planning Team Members

Instructions for this assignment: Perform this activity individually and not as a group.

As a member of Carnival Corporation’s strategic planning team, you have been asked to create a five to six slide Microsoft PowerPoint presentation titled “Carnival Today: A Brief Overview of the Business” to orient members who have been newly added to the strategic planning team. The PowerPoint presentation should include — at a minimum — the following:a. The CEOs vision and overview of 2004 performanceb. The organizational structure and management teamc. A brief description of each of the brands/business units and the

products and services offeredd. Key corporate goals and/or objectives such as new ships, new

markets, and new customers

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e. Total Revenues in 2004 and Net Profit in 2004

Send your presentation by e-mail to the members of your group and to your facilitator.

Final Project Activity 1b: Key Competitors in the Cruise Line IndustryInstructions for this assignment: Perform this activity individually and not as a group.

The Sr. Vice President of Strategic Planning at Carnival Cruise Lines Corporation (CCL) has asked you to find three articles from the business press that talk about competition in the cruise line industry. Your goal is to learn about the two main competitors in this industry, Royal Caribbean and Star Cruises.

She would like you to read the articles and draft a preliminary profile of two competitors of CCL. Each profile should be no longer than one page in length and should touch upon the points in Activity 1a above. You will be adding this information to the profile in Week 3. Send your report by e-mail to your facilitator.

2 External Environment of the Firmo What is External

Environmento Environmental Scanningo Environmental Monitoringo Environmental Forecasting

Competitive Environmento Porter’s Five Forces Modelo Value Net Analysiso Dynamics of Competition

Strategic Challenges and Issues facing the Industry

Dess, Lumpkin, & TaylorChapter 2

Research the stakeholders in the external environment of the cruise industry and investigate their claims or concerns. This research will influence your environmental analysis and stakeholder audit. Be prepared to use your findings in the

Discussion Questions:

1. Based on the distinction between environmental scanning and environmental monitoring, discuss whether CCL should be using environmental scanning or environmental monitoring as important input for analyzing its external environment?Explain why you selected what you did and identify what the strategic planning team at CCL should scan and/or monitor.

2. Many general environmental factors influence the firms in the ethical pharmaceutical strategic group in the pharmaceutical industry.

Outline what these factors are and prioritize them in terms of their impact on the firms. Discuss and defend your ranking and describe why you prioritized them as you did.

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following assignments:http://www.bized.ac.uk/current/argument/arg21.htmwww.cruisejunkie.comwww.boatingchannel.com (Article from the Boston Globe on “Cruise Ships Getting Bigger, Causing Passenger and Port Trouble.”)www.oceana.org

3. Analyze and explain movements across strategic groups in the U.S. retail industry. Focus on discount retailers entering grocery retailing such as Wal-Mart and Target both have or on Starbucks entering the music retailer space. How do these movements within the retail industry change the nature of competition? What are some key environmental trends that impact retailing? Rationalize with the help of examples.You can visit http://retailindustry.about.com/ for information about the retail industry. In addition visit the Top 100 Retailers list.

4. Visit http://www.kroger.com

What are the top-three forces driving industry competition and which affect the profitability of this firm? Provide examples to support your viewpoint.

5. What are the legal and ethical issues involved in collecting competitor information in the following scenarios:

To find out their competitors’ key production strategies, a car manufacturer offers to employ a key employee of the other car manufacturer at two times the original salary.

A large company, using a false name, has posted a “request for proposal” on an online bidding site. It wants to solicit bids, some of which could come from its current suppliers, to see if the quotes the suppliers submit come in lower than what the large company is currently paying. What do you think of this practice? Is it legal? Is it ethical? Is it good business?

Assignments:

1. Buyer Profile: Luxury SegmentYou are a market researcher at a consulting firm that specializes in the cruise industry. Your client wants an updated buyer profile of the luxury segment of the cruise industry. After completing your research develop a buyer profile for the client, which includes:a. Key demographics and psychographic characteristics of the buyer

segment

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b. The amenities and services the client wantc. The length of cruise and the cruise destinations that this buyer

segment prefers

Compile your findings in the form of a two-page Microsoft Word report. You may find an article that describes the ultra-luxury end of the market for resort amenities in the August 24, 2005 issue of Wall Street Journal interesting.

2. Improving Your Competitive PositionYou are a business analyst in the strategic planning office of a midsized computer software manufacturing company in California’s Silicon valley.

Key specifics about your company:a. Software development and researchb. 2,500 employees across two national locationsc. $17 million in fixed assetsd. $105-million earned revenue during the last yeare. 6% projected quarterly growth rate in revenues for the next year

The Sr. VP of strategic planning has asked you to write a two-page report, outlining key strategic moves that your firm can take to decrease the intensity of industry competition it currently faces. The report should provide prescriptive advice about what activities are possible to improve your firm’s competitive position.

Address your report to the Sr. VP Strategic Planning.

3. Final Project Activity 2: External AnalysisInstructions for this assignment: Perform the first part of the assignment as a group. The group leader, in consultation with the Facilitator, should divide the tasks for Part I of the assignment among the group members.

Part II of the assignment should be performed individually. Do not consult with other group members when working on this part of the assignment.

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Part IAs part of the Strategic Business plan, the strategic planning team has been asked to:a. Analyze the driving forces for change in the external environment of

the cruise line industry.b. Analyze the dynamics of competition using Porter’s Five Forces

Model of Competition.c. Provide some statistics about the size of the cruise industry such as

revenues, growth rate, number of ships, and number of berths.d. Summarize the strategic issues firms in this industry face and

identified its biggest threats.

Research the topic that the group leader selected. Log on to the team’s discussion area on Day 3. Discuss and share the data you gather with the group.

Hint: You might want to e-mail the data you gather to your group members a day before the discussion. This will ensure that everybody has read the data and has input ready.

Part IIa. The CEO has requested the information in two formats:b. A ten-slide Microsoft PowerPoint presentationc. An executive summary of no more than four-six pages that presents

your analysis and conclusions3 Internal Environment

SWOT Analysis Value Chain Analysis

o Primary Activitieso Secondary Activities

Resource-Based Analysiso Internal Analysiso External Analysiso Achieving Sustainable

Competitive Advantage

Dess, Lumpkin, & TaylorChapter 3

Review Carnival Corporation’s (CCL’s) financials from the annual report. Hint: Return to the site to review the Investor relations data available

Discussion Questions:

1. Sustainable competitive advantage is the “holy grail” of corporate strategy but it is elusive. Using all you have learned to date about Carnival Corporation, analyze whether or not Carnival has a source of sustainable competitive advantage. Defend your answer using examples from your readings, the Annual report, and your critical thinking about what you know.

2. Your editor, refer to Assignment 1, Week 1, was very pleased with the article you wrote for the newsletter about stakeholders. The editor would

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Financial Ratio Analysiso Ratio Analysiso Balanced Scorecard

in download form. It might help you save time.

Find three recent articles in popular business magazines — online or printed — about CCL. Ensure that the articles focus on CCL’s business operations, marketing, human resource practices, environmental stance, and future direction. Some resources you can utilize to start looking for information include:

Business Week: http://www.businessweek.comThe Economist: http://www.economist.comThe Wall Street Journal: http://online.wsj.com/public/us

Read and understand Financial Ratio Analysis Techniques from the textbook, Appendix to Chapter

like you to write a story on outsourcing. You know that many corporations are analyzing their value chains to understand how and which activities provide value to customers. This has led many firms to outsource non-core activities in which they do not excel or activities that do not provide value to customer. To write a comprehensive story you will engage in a discussion that touches on the following points:a. Is outsourcing a good idea?b. Under what circumstances should it be done?c. Does the corporation have any duties or responsibilities to the

employees who are affected by outsourcing? If yes then what duties do they have?

d. If you were going to advise a college student, what type of career would you recommend to avoid being outsourced?

Visit www.about.com, click Business, and perform a search to see what you find on these topics.

3. The resource-based view of the firm emphasizes three types of resources: tangible, intangible, and organizational capabilities.

Further for the firm to have sustainable competitive advantage over its rivals, over time the resources must be valuable, rare, difficult to imitate, and difficult to substitute. What does this mean?

Using this framework of sustainable competitive advantage, find two examples and justify why you believe they are good examples of sustainable competitive advantage.

Assignments:

1. The Value Chain of Argosy UniversityAssignment 1Each firm has a value chain but not every primary or secondary activity creates value for customers.a. Map the value chain of Argosy University and identify if and how the

activities provide value to students.

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3.

Read the article from Harvard Business Review to understand the Balanced Scorecard approach to evaluating firm performance.

b. Make at least three suggestions about how value could be added and identify which activity in the value chain would be modified and how.

c. Post the filled document to the Discussion Board. Review each other’s documents and notice the difference. Do you agree with the views presented? Why or why not?

2. Service Differentiation at Best BuyYou work as a business strategist for a top convenience store chain. You need to implement a strategy to build customer loyalty and increase sales. Your supervisor thinks that one such strategy is service differentiation. You decide to research this concept for information.

You discover that Best Buy had implemented service differentiation successfully.

Visit http://www.csnews.com/csn/index.jsp to find out about the case. Search the story titled Best Buy Differentiates through Service, August 21, 2005.a. Write a one- to two-page Word memo to your supervisor describing:b. How the successful implementation of these strategies required

changes in Best Buy’s primary and secondary value chain activities?c. What possible impact do you foresee if you decide to implement

service differentiation in your company?

3. Values and Limitations of the SWOT AnalysisAt lunch you hear two successful executives at your firm challenge the value of the (Strengths, Weaknesses, Opportunities, Threats) SWOT analysis, calling it “too static” and only a “snapshot” at one point in time. The challenge intrigues you because with experience, you believe that the SWOT is the first step to understand the internal environment of the firm. When you return to your office you decide to send an e-mail message to the executives, stating:a. The value and limitations of the SWOT analysis.

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b. How SWOT fits into the resource-based view of the firm.

Send the analysis as a one to two-page Word document to the Facilitator

4. The Balanced ScorecardYour company is “bottom-line-driven” and in your role as marketing director, you know that placing more emphasis on listening to the customer, reducing the need for “after-sales” service by improving product quality, and meeting customer deadlines will improve sales, customer satisfaction, and most importantly, customer loyalty.

You have been asked to develop a PowerPoint presentation for the next executive committee meeting, where you will logically argue that a balanced set of metrics that focuses on the customer, internal business processes, and deployment of learning and technology will improve company performance. This represents a shift from analyzing company performance solely based on financial performance to a broader view of corporate performance.

You have read a Harvard Business Review article titled The Balanced Scorecard by Kaplan and Norton. It makes perfect sense to you, and you decide it will serve as the basis of your presentation. The COO has asked to review your PowerPoint presentation before the meeting.

In the presentation you should present arguments in favor of the Balanced Scorecard and compare it to financial metrics alone.

5. Carnival Cruise Lines’ Internal AnalysisThe Sr. VP of Strategic Planning is feeling some pressure now to show your progress to the executive team. She suggests that the planning team use the “divide and conquer” approach to this week’s deliverables.

She wants to see the following from your team by the end of the week. The initial tasks — titled Team tasks — will be performed in a group. The creation of PowerPoint presentations and supporting Word Documents will be performed individually — titled Individual tasks. The group leader, in consultation with the Facilitator, should divide the tasks of the Final

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project activity between the group members.

A financial analysis and a BSC analysis are two ways to assess the effectiveness of CCL's current strategy. a. Team Tasks

i) Perform a ratio analysis using CCL’s five-year financial performance. Interpret the meaning of the ratios and financial performance.

ii) If you were going to create a BSC, what would be the key metrics you would measure in each of the four BSC areas: Financial, Customer, Internal Business Process, and Learning and Growth.

b. Individual Tasksi) Summarize the findings in a PowerPoint presentation of not more

than five slides titled The Analysis of CCL’s Current Strategy: Two Views. Support the presentation with a one- to two-page Word document narrative.

Building on the competitor analysis performed in Week 1, Project Activity 1, the Sr. VP also wants to see an analysis of the financial strength of two key competitors.

c. Team Tasksi) Your team must decide which two competitors present a

competitive threat to CCL.ii) Perform financial ratio analyses for the two competitors after

looking at trends in financial performance over five years and compare the trends to industry averages.

iii) Be sure, as a team, you have a clear ranking of the industries’ competitors.

d. Individual Tasksi) Summarize the findings in a three-slide PowerPoint presentation

titled Competitor Analysis and a Word document of not more than two pages in length and submit to the Facilitator

4 Cost Leadership Strategy Dess, Lumpkin, & Discussion Questions:

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o What is Cost Leadershipo How Cost Leadership

Leads to Sustainable Advantage

o Advantages and Disadvantages

Differentiation Strategyo What is Differentiationo How Differentiation Leads

to Sustainable Advantageo Advantages and

Disadvantages

Focus Strategyo What is Focuso How Focus Leads to

Sustainable Advantageo Advantages and

Disadvantages

Combining Cost Leadership, Differentiation, and Focus

Industry and Firm Life-Cycleo Strategic Implications in

Each Stage

TaylorChapter 5

Read the summary of The Experience Economy: Work is Theatre and Every Business a Stage by B. Joseph Pine II and James H. Gilmore Harvard Business School Press, Boston, Mass., 1999 ISBN 0-87584-819-2, or

Visit http://www.bizsum.com/articles/art_the-experience-economy.php to read more about the book.

1. Until recently Wal-Mart — www.walmart.com — seemed unstoppable with its sophisticated logistics and supply chain management innovations. It is the overall cost leader, which is their generic strategy, in the discount retail industry. Recent events have caused the Benton Arkansas behemoth to stumble.

Research Wal-Mart’s current performance and relate what you find with the quote by Leslie Wexner, CEO of The Limited, who said, “Success doesn’t breed success. Success breeds failure because the more you know a thing works, the less likely you are to think that it won’t work. When you’ve had a long string of victories, it’s harder to see your own vulnerabilities.”

Hint: You may want to find out why Target Corporation is doing so well at www.target.com or review Vogue magazine, September 2005, for clues. You will also find many other articles about Wal-Mart’s challenges. You are free to respond to any or all the challenges it faces.

2. In strategic terms “stuck in the middle” has many consequences, most of them negative.

How does a firm end up in this position and what are the resultant negative consequences? What can be done to avoid this undesirable position? Justify your viewpoint using examples. Hint: Think of K-Mart in retail as the classic example.

3. Visit www.tollbrothers.com.Toll Brothers Homebuilders is a good example of a firm pursuing a differentiation or generic strategy in the homebuilding industry.

Based on your review of the Web site, discuss the points of differentiation that the company emphasizes. How has Toll Brothers’ differentiation strategy enhanced its position with respect to the five forces of competition in its industry? What are the risks it faces? Use examples to illustrate your viewpoint.

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On November 8, 2005, Toll Brothers issued a statement that it is lowering its expectations of home sales in 2006 because of various risk factors. Determine what factors Toll Brothers identified as contributory to its home sales shortfall.

4. One way corporations reduce costs is through supply chain optimization. Does supply chain optimization lower costs, improves customer service, and improves sales? Or all the above. Visit www.cscmp.org, which is the Web site of the Council on Supply Chain Management Professionals, and review it to help you analyze the answer. You could also use other examples to justify your viewpoint.

In addition visit www.about.com and click business and search for supply chain management or supply chain optimization. Avoid the vendor-sponsored sites.

5. In the Introductory stage of the product life cycle, what are some unethical practices that managers could engage in to enhance their firm’s market position? What could be some of the long-term implications of these actions? Justify using examples.

Assignments:

1. Toyota’s Successful Combination StrategyThe Sr. VP wants to be sure that CCL has a product for all cruisers and that it captures the next generation of the cruise market.

She believes Toyota is an excellent example of a company that combines overall cost leadership and differentiation while having a product line without gaps – a full line of car/truck/SUV/hybrids.a. Write a two-to-three page report describing how Toyota successfully

achieves the combination of overall low cost and differentiation. Be sure to describe the factors leveraged across a range of Toyota brands and why having a full product line is important to its over-all business strategy.

b. Include in your report your preliminary views on whether or not CCL can adopt a similar strategy to Toyota’s and achieve success. Explain

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your views.

2. Final Project Assignment: Brand Analysis — Carnival CorporationThe analysis of current strategy and competitor analysis you conducted last week impressed the Sr. VP. She now needs you to delve into the brands and analyze them. This is your business unit analysis.

Refer to the Web site of each brand and review the annual report for relevant details of the size, scope, target market, services and amenities, and other salient points of differentiation. Again the “divide and conquer” approach is suitable to accomplish this analysis.

Team TasksFrom the research and analysis of the business units, identify: A description of each brand or business unit that provides a clear

picture of the brand and its place in the overall portfolio of CCL The target market of each brand How the brands are alike and how they differ A preliminary analysis of any gaps that exist in the portfolio that

might lead to opportunities to add to the brands Your analysis of why CCL and plc merged and what was achieved or

accomplished through the merger.

Note: Mergers and acquisitions will be dealt with in depth in Chapter 6 of the textbook and Week 5 lectures.

Individual Task: WorksheetFill up the Brand Analysis worksheet with your findings and submit to the Facilitator

5 Introduction to Diversification

Related Diversification

Dess, Lumpkin, & TaylorChapter 6

Discussion Questions:

1. “Synergy” is an often-used word in business but as the popular press and

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o Economies of Scopeo Revenue Enhancemento Market Power

Unrelated Diversificationo Financial Synergyo Parenting

Methods of Achieving Diversification

o Mergers and Acquisitionso Strategic Alliances and

Joint Ventureso Internal Development

Corporate Ethics in Value Creation

the textbook suggest, many efforts at diversification do not provide value to customers or shareholders. Based on your analysis of CCL to date and its merger, describe how it has done or could do the following:a. Find economies of scope. Provide examples of specific actions CCL’s

managers could take to reduce expenses or share activities through horizontal relationships across brands. An example could be leadership training.

b. Find ways to achieve economies of scope by leveraging assets and capabilities across business units.

c. Find ways to enhance market power by pooling and negotiating or vertical integration. Owning travel agencies is an example of vertical integration.

2. Visit the Altria Web site at www.altria.com.Altria is an example of unrelated diversification, which when done well, yields financial synergies and vertical benefits from a strong parent corporation. Review “Altria at a Glance” and the history of the corporation and the businesses within the holding company.

Discuss why Altria is diversified in this way and assess its portfolio of businesses to determine if and how it achieves the benefits of unrelated diversification.

3. Mergers and acquisitions (M&A) are on the rise in the United States. M&A are perceived as the easiest way to enter new markets, acquire new competencies, and gain control. A downside can be the premium paid for the acquired firm and the costs incurred on integrating the acquired firm into the business.

See this article on Investopedia: http://www.investopedia.com/university/mergers/mergers6.asp

For additional information visit: www.oligopolywatch.com

After additional reading on the strategy of M&A, discuss your analysis of why CCL and plc merged. Provide your prognostication of the efficacy of this merger and its probability of creating synergy and market power.

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4. Debate the following: Executives ought to have protections built into their employment contracts to protect them if their firm is acquired. What do you think are the pros and cons of this debate? Support your views with evidence and debate your point with examples.

Assignments:

1. Synthesis PaperTo ensure you clearly understand how CCL has grown to date, review your documents, including articles, annual reports, press releases, and other documents and write a clear summary that answers the following questions:a. What business is CCL in? Are its businesses congruent with its stated

mission?b. How has the business grown over the past five years? Internal growth,

which includes adding new brands that are internally funded; acquisitions, alliances, vertical integration, or a mix of the above?

c. What is CCL’s current strategy? Use concepts that pertain to corporate-level strategy (Chapter 6).

d. How well has CCL integrated the merger with plc in 2003?e. What functional areas, resources, capabilities, and strengths does CCL

possess? Marketing: New product development, integrated marketing

planning, marketing communications, and building customer loyalty. You can also focus on the impact of blogging and refer to an article on blogging in the cover story of the May 2005 issue of Business Week.

Operations: Quality, service, and consistent execution. HR: Hiring, training, developing talent, and performance

planning. Avoided law suits and bad PR due to its hiring practices. Is ethical in its HR practices.

Executive leadership: Industry knowledge and experience, vision about where the industry is heading, and strategy execution.

Supply Chain Optimization: Strategic sourcing of input, vendor management, integrated IS, and joint forecasting with suppliers.

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Corporate Responsibility: Concern for corporate citizenship and the environment.

Safety, Security, and On-Board Health: How cruise lines are dealing with security and health threats.

2. Stakeholder Issue Analysis Responsibility PlanMost strategic plans address key corporate responsibility issues in the business. The Board and Executive team at CCL want a corporate responsibility strategy that addresses challenges from environmental and labor groups.

After selecting an issue, write a three-page White Paper on an issue analysis for the Board and Executive team. The White Paper should outline:a. The concerns of stakeholders and what they wantb. What CCL has done to date and what more it could do in the future

3. Bold Strategiesa. The executive team will soon want your ideas about bold strategies

for the future. The strategies you recommend will have to contribute to growth and profitability, as outlined in the Annual Report. You will want to pay special attention to exploring vertical integration, strategic alliances, and the internal growth of new brands entering new geographic markets, and/or additional acquisitions. As a team discuss the following: i) Whether or not CCL (CCL) is competing in the right businesses,

given the opportunities and threats present in the external environment. If not how can CCL realign its diversification strategy to achieve competitive advantage? This would include additional diversification to take advantage of opportunities such as further vertical integration. It could perhaps include buying a business unit with a very high profit pool.

ii) Is the corporation managing its portfolio in a way that creates synergy among its businesses? If so what additional businesses should it consider adding to its portfolio?

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b. After you have discussed the growth and profitability strategies, individually brainstorm a list of possible strategies to present a full range of ideas. Create a PowerPoint presentation titled Bold Strategies to Ensure Future Growth and Success—Draft One. This is your first draft and by no means your final recommendation.

The presentation should include your complete list — all potential ideas — for the SVP. This is your chance to be creative. Next rank your ideas from best to worst. To do this, keep in mind several things such as fit with current strategy, resources and capabilities, and difficulty of execution.

For each of your top five ideas, add the following: Briefly describe the strategy Why you picked it as one of the top five

c. Think about such things as: Does the strategy build on current competencies and foster horizontal relationships among brands? In other words what can be leveraged or shared? What are the pros and cons of this strategy?

d. Submit the PowerPoint presentation to the Sr. VP so that she can review the alternatives and provide you with feedback about your ideas.

6 Introduction to the Global Economyo Factors Affecting An

Economy

Motivations and Riskso Motivations for Expansiono Risks in Expansion

Competitive Advantage in Global Markets

Entry Strategies for Global Expansion

Dess, Lumpkin, & TaylorChapter 7Chapter 8

Caux Round Table Principles for Business at www.cauxroundtable.org

Discussion Questions:

1. Using Porter’s diamond framework for national competitiveness, discuss the success of the software industry in India. How do the four factors in Porter’s diamond explain the success of this industry over related industries in the country? Over the next five years what do you predict might happen to the software industry in India based on all that your have learned so far in all your classes?

2. The Internet has lowered entry barriers for smaller firms that wish to diversify into international markets. Why is this so? Provide at least two examples.

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The Internet as a Means to Going Global

o How the Internet Adds Value

o Internet Business Modelso Competitive Strategies

Leveraging E-Business Capabilities

3. The Caux Roundtable has developed a set of principles to guide businesses doing business globally based on both eastern and western philosophy.

Visit the site and familiarize yourself with this Non-Governmental Organization (NGO), review the principles, and assess how CCL measures up to global principles:www.cauxroundtable.org

In your opinion what are some of the barriers to practicing these principles when entering new markets in less-developed countries? Support your conclusions with examples.

Assignments:

1. The Experience economy and the Rise of Guerilla/Buzz Marketing Techniques

Toyota used ideas from the book, The Experience Economy, and guerilla marketing when it launched its Scion vehicle.

The Sr. VP wants you to determine whether CCL can employ some of these marketing strategies to enter new markets. As a result you need to first define what is meant by “the Experience Economy.” Next you will apply the ideas by reviewing what Toyota did with Scion. Finally you will apply the ideas to CCL and provide recommendations to the SVP.

Visit www.scion.com and answer the following questions:a. Who is the target market? Write a paragraph describing the customers

for this car.b. Describe the various ways this site engages the consumer, creates

community, and builds loyalty and aids in the buying process.c. Why is it important for Toyota to capture “the next generation of car

buyers?” How successful has this strategy been? How have car sales of the Scion been?

In a two-paged memo to the Sr. VP, outline your research of the Toyota business case and your preliminary conclusion about whether or not CCL

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can enter new markets employing these marketing strategies. You need to justify your conclusion to the Sr. VP.

2. The Rules of Competition: How is the Internet Altering Them?You are a freelance business strategy consultant. A small retail business owner, offering niche products to a local market, hires you to investigate whether she should go online.

You know that shopping on the Internet is fast growing, considering the percentage increase or (Compound Annual Growth Rate) CAGR of Internet sales over the past five years. You can shop for clothes, furniture, accessories, and even engagement rings online. The Internet provides a common platform for everybody to advertise.

In this context describe to your client:a. How is the Internet altering the rules of competition?b. What are the pros and cons of entering the Internet for a small

business?c. What should be the marketing strategies for a small business on the

Internet?d. Support your arguments with specific examples. Articulate your

thoughts in a two- to three-page White Paper for your client and submit to the Facilitator

3. The Eco-Tourism and Adventure Tourism MarketsEco-tourism and/or adventure tourism is a growing part of the travel market. Research this market segment — or segments if you think they constitute two distinct segments — and create a buyer profile that:a. Analyzes the size of this market and how fast it is growing.b. Describes eco-tourists succinctly. Are they different from adventure

travelers? What are their travel values? What value proposition does this segment(s) respond to?

c. Identifies who the key players in this segment(s) of the market are.d. Identifies other cruise lines that specialize in eco-tourism or adventure

travel.e. Explains how this fits with the experience economy.f. Whether or not CCL or any of its brands should enter the eco-tourism

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market? If yes what should be the entry strategies? If no why shouldn’t CCL enter the eco-tourism market?

Compile your analyses in the form of a two- to three-page Word report for the Sr. VP and submit to the Facilitator

4. Assignment CCL’s Use of the Internet: Your AssessmentFinal Project Activity 6a[Note: Through this activity the students will research how well CCL (CCL) has leveraged the Internet to educate consumers, provide product-related information to help consumers evaluate product offerings, book cruises, services, and destination excursions, and provide other service-related problem-solving activities.]

Part 1The Sr. VP is excited about the teams work and has one more major assignment before she asks you to pull this together into a plan.

You have analyzed all the brands in CCL’s portfolio and have visited its Web sites numerous times. You have working knowledge of the sites’ functionality and have analyzed the degree to which each site “speaks to” its target market and what brand messages achieve this.

She would like you to select the best site and justify your rationale for selecting it. Remember best doesn’t mean the one you like best or the brand you would like to cruise with, it is the one that achieves its objectives most successfully. Discuss this as a group and reach a consensus. After the group has decided which site is best, write a short memo to the Senior VP titled, “The Best Site Award goes to…..”

Part 2Working individually the Sr. VP would like you to recommend ways to improve the Web site and make it more “sticky.” She would like to increase Web traffic to the sites by 20% over the next year. This will involve research to determine an array of interactive tactics that build traffic and loyalty to a Web site and brand. Please send her a menu of ideas, in Word, with an explanation of why you are recommending each.

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Be sure you have provided recommendations that achieve the increase in traffic or hits, the number of pages visited, and repeat business to the cruise brand.

Final Project Activity 6bYou have received feedback from the Sr. VP on your draft list of recommendations that you submitted in a PowerPoint presentation as part of the Project activity in Week 5. It is time to review them again and determine which set of recommendations provides the best set of strategies for CCL going forward.a. Work individually and redo your PowerPoint titled Bold Strategies to

Ensure Future Success and Growth. You will submit these bold strategies again but this time you will:i) Add your rough forecast of revenues from the strategy. For

instance if you are recommending adding a new ship to focus on a particular market niche, roughly estimate the berths X the passengers X the length of the trip X per year to obtain a rough estimate of revenues. You should forecast revenues for five years.

b. Complete a timeline for how long it will take to implement the strategy and what value chain activities will be modified because of implementation.

c. Provide as much detail as needed to support your recommendations.

The superlative finance team at corporate headquarters will assist the team in this part of the project.

7 Corporate Leadershipo Direction Settingo Organizational Designo Organizational Culture

Leadership Traits

Building an Ethical Organization

Building a Learning Organization

Dess, Lumpkin, & TaylorChapter 9Chapter 10Chapter 11

Harvard Business Review article, “The Parable of the Sadhu”

Discussion Questions:

1. Strong corporate cultures have a powerful affect on employee behavior. Discuss how this creates inadvertent control mechanisms. For example are strong cultures an ethical way to control behavior? Provide examples to support your views.

2. How has the role of Boards of Directors changed in the post Tyco, post Enron era? What are some key governance mechanisms that ensure that managers and shareholder interests are aligned?

3. How can rewards and incentives be aligned to foster ethics and learning

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within a corporation.

4. In the organizations you are familiar with, do you see more hard controls or soft controls being used? Provide examples to justify your answer.

Assignments:

1. Developing Leadership TalentBecause of your exceptional performance in the strategy team, you have been selected to join the Carnival Leaders of the Future development program. As part of the two-year development program, you will take a series of assessment instruments to determine your leadership style and emotional intelligence.

Gaining Self Insight: For Part I of this assignment visit the following Web site, take the instrument, and write a one-page development plan for yourself in Word. This plan should focus on how you will develop emotional intelligence, what aspects of emotional intelligence you are strong in, and what needs further development.http://quiz.ivillage.com/health/tests/eqtest2.htm

Observing Others: Part II of this assignment involves observing the presence or absence of emotional intelligence in people around you. For three days observe interaction among your team members, their behavior with each other, and the statements they made. What did you observe? Were there any patterns of interaction that stood out? Did you observe high emotional intelligence? Did you observe low emotional intelligence? Illustrate your observation in a one- to two-page Word document with examples and submit to the Discussion Thread

2. The Parable of the SadhuRead the classic (Harvard Business Review) HBR article, ‘The Parable of the Sadhu,’ and write your personal reflection on this case study. Be sure to answer the following questions in a three-page Word document:a. Describe in a paragraph the moral or ethical dilemma Bowen McCoy

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faced on the Himalayas.b. Analyze the actions of each stakeholder in this story and rank them on

a continuum from ethically sound actions to ethically questionable actions. Include in your analysis the climbers, the Sherpa guide, the porters, and the sadhu. Justify your answers with examples.

c. What would you have done in this situation? And why?d. How were the dynamics on the mountain similar to those in a

corporation? Use examples to illustrate the similarities.e. How were the dynamics on the mountain dissimilar to those in a

corporation?

Post your assignments in the Discussion Thread, read your colleagues papers, and comment on their analyses/papers.

1. Final Project Activity 7: Code of Conduct for Doing Business GloballyAs you finalize your PowerPoint presentation and Strategic Business Plan, ensure you have developed a Code of Conduct for doing business globally. This “Code of Conduct” should be a two-page Word document. You may draw on readings in the class and research other firms’ codes of conduct.

In addition develop an action plan to communicate and reinforce the Code of Conduct throughout the corporation. The action plan should include at least 10 ideas to implement, communicate, and ensure the adoption of the Code of Conduct, guaranteeing that everyone in the firm understands and practices it and that it serves as a framework for action.

This “Code of Conduct” will be part of the strategic business plan that you finalize in Week 8.

8 Business Plan Guidelineso What is a Business Plano Purpose of a Business Plano Sections of a Business Plano Compiling Data in a

Business Plano Presenting a Business Plan

Dess, Lumpkin, & TaylorChapter 9

Review Chapter 9: Strategic Control

Review the HBR article by Kaplan and

Discussion Questions:

1. Based on your reading this week and all you have learned throughout the course, frame your David Letterman’s Top Ten List of Strategy Implementation Dos. Make sure the advice you give is valid, but it can be funny too. Share your Top Ten list with the class and vote on the best Top Ten list.

2. Self-reflection is the key to good leadership and good management.

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Norton, The Balanced Scorecard.

Visit the site http://www.themanager.org/Knowledgebase/Strategy/Implementation.htm and read the following three additional articles on strategy implementation:

1. A Strategic Look At Strategy ExecutionTop executives are skilled at developing strategy, but setting plans in motion is where they fail, says Lawrence Hrebiniak, Professor at the Wharton School, in this Optimize Q&A.

2. Communicating Your Strategy The forgotten fundamentals of strategic implementation by Jake Laban, MBA and Jack C. Green, Ph.D.

3. Operational Alignment: Bridging the Gap between

Reflect on what you have learned in this class and on what you gained from your BS Completion program. Based on your reflections discuss the following with your fellow students:a. What are five-six key “lessons” learned from the textbook and the

content that will help you in your career?b. What you have learned about yourself.c. Your hopes for the future.

3. Discuss the importance of communication and the best way to gain support and buy-in for change. Do you think a communication strategy should be placed on an equal footing with other established strategies supported throughout the academic and professional worlds?

4. You are in an elevator and you are asked to talk about your skills and experience in two minutes. This could lead to a potential job in an industry you love, at a company you admire, in a role that you would most certainly enjoy and be well compensated for too. What would you say? Be sure to time yourself to make sure your monolog is two minutes or less. Post and respond to each other’s elevator speech.

Assignments:

1. Setting Balanced Scorecard MetricsAs one of your final assignments in the strategic planning team, you need to develop Balanced Scorecard targets or goals and metrics or measurements for the strategic plan.a. Using your readings and research and your knowledge of CCL’s

annual reports, stated goals, and objectives, draft key targets and metrics for the:i) Customer Perspectiveii) Internal Process Perspectiveiii) Learning and Innovation Perspective

b. Challenge yourself to link the targets to specific initiatives you have identified in the Business Plan you are developing for CCL.

2. Anticipating Resistance to ChangeAnticipating that resistance to change and new initiatives is part of

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Strategy and Execution by Jonathan D. Becher

planning for their execution/implementation. Visit www.themanager.org and search articles about change and change management. Select two-three articles and summarize them in a PowerPoint presentation to the executive committee of CCL.

Title your PowerPoint “In Anticipation of Resistance” and identify where in CCL, the change will occur most because of the Business plan and suggest several organizational development and change management strategies to help overcome the anticipated resistance. Please restrict the number of slides to six.

3. Final Project – Strategic Business Plan-FinalThis week you will submit the written Strategic Business Plan and PowerPoint presentation “In Anticipation of Resistance” to the Sr. VP. She will review it and provide feedback.

You will present the final Business Plan and the PowerPoint presentation to the Executive Team, so ensure that the PowerPoint is well done, visually interesting, succinct, and complete.

Note: Do this activity individually.

Grading Criteria

Grading Scale Grading requirements

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A 100 – 93A- 92 – 90B+ 89 – 88B 87 – 83B- 82 – 80C+ 79 – 78C 77 – 73C- 72 – 70D+ 69 – 68D 67 – 63D- 62 – 60F 59 and below

Attendance/participation 25%Weekly Assignments 20%Final paper 35%Optional 10%Optional 10%

100%

Library:

All resources in Argosy University’s online collection are available through the Internet.  The campus librarian will provide students with links, user IDs, and passwords. 

Library Resources: Argosy University’s core online collection features nearly 21,000 full-text journals and 23,000 electronic books and other content covering all academic subject areas including Business & Economics, Career & General Education, Computers, Engineering & Applied Science, Humanities, Science, Medicine & Allied Health, and Social & Behavior Sciences.  Many titles are directly accessible through the Online Public Access Catalog at http://library.argosy.edu.  Detailed descriptions of online resources are located at http://library.argosy.edu/misc/onlinedblist.html.

In addition to online resources, Argosy University’s onsite collections contain a wealth of subject-specific research materials searchable in the Online Public Access Catalog.  Catalog searching is easily limited to individual campus collections.  Alternatively, students can search combined collections of all Argosy University Libraries.  Students are encouraged to seek research and reference assistance from campus librarians.

Information Literacy: Argosy University’s Information Literacy Tutorial was developed to teach students fundamental and transferable research skills. The tutorial consists of five modules where students learn to select sources appropriate for academic-level research, search periodical indexes and search engines, and evaluate and cite information. In the tutorial, students study concepts and practice them through interactions. At the conclusion of each module, they can test their comprehension and receive immediate feedback. Each module takes less than 20 minutes to complete. Please view the tutorial at http://library.argosy.edu/infolit/

Academic Policies

Academic Dishonesty/Plagiarism: In an effort to foster a spirit of honesty and integrity during the learning process, Argosy University requires that the submission of all course assignments represent the original work produced by that student. All sources must be documented through normal scholarly references/citations and all work must be submitted using the Publication Manual of the American Psychological Association, 5th Edition (2001). Washington DC: American Psychological Association (APA) format. Please refer to Appendix A in the Publication Manual of the American Psychological Association, 5th Edition for thesis and paper format. Students are encouraged to purchase this manual (required in some courses) and become familiar with its content as well as consult the Argosy University catalog for further information regarding academic dishonesty and plagiarism.

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Scholarly writing: The faculty at Argosy University is dedicated to providing a learning environment that supports scholarly and ethical writing, free from academic dishonesty and plagiarism. This includes the proper and appropriate referencing of all sources. You may be asked to submit your course assignments through “Turnitin,” (www.turnitin.com), an online resource established to help educators develop writing/research skills and detect potential cases of academic dishonesty. Turnitin compares submitted papers to billions of pages of content and provides a comparison report to your instructor. This comparison detects papers that share common information and duplicative language.

Americans with Disabilities Act Policy

It is the policy of Argosy University to make reasonable accommodations for qualified students with disabilities, in accordance with the Americans with Disabilities Act (ADA). If a student with disabilities needs accommodations, the student must notify the Director of Student Services. Procedures for documenting student disability and the development of reasonable accommodations will be provided to the student upon request.

Students will be notified by the Director of Student Services when each request for accommodation is approved or denied in writing via a designated form.  To receive accommodation in class, it is the student’s responsibility to present the form (at his or her discretion) to the instructor.  In an effort to protect student privacy, the Department of Student Services will not discuss the accommodation needs of any student with instructors. Faculty may not make accommodations for individuals who have not been approved in this manner.

The Argosy University Statement Regarding Diversity

The Argosy University provides equitable access through its services and programs to students of any social, geographic and cultural background, regardless of gender, and strives to prepare all candidates to work with and provide services to diverse populations.  Argosy demonstrates its commitment to diversity through the development and support of a diverse educational community.

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