IB&M 400 “Senior Seminar:

International Business Policy and Strategy”

Spring 2002: Monday 1:00-2:15 & Wednesday, 2:00-3:15

Instructor: Michael J. Fratantuono

Office hours: Tues. & Thursday 2:00-3:30; Wed 11:00-12:00 & by appointment

Email: fratantu@dickinson.edu

Office phone: 717-245-1075

Home phone: 717-243-4848 (No calls after 9 PM please)

Required Material

Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson, Strategic Management: Competitiveness and Globalization, 4^th edition (2001), South-Western College Publishing. (Note, we have ordered the “split” version of this text for this class. That is, we have ordered the version that includes all the theoretical chapters, but does not include the numerous case studies: students and faculty working through previous versions of the course found those cases were not as well-written as Harvard Business School case studies. Thus, if you care to buy a used copy of the text, keep this in mind.)

Capstone: The Business Simulation. (This package, which includes a student manual, diskette, and other material, will be distributed in class. However, in order to play the simulation game—more on this later—each person in the class will have to register on the Capstone web site. At that time, you will be billed.)

Professor Poulton and I have set up a private web site at Harvard Business School Publishing for our course.

http://www.hbsp.harvard.edu/hbsp/priv_enh/priv_login.asp

At this site, you will be able to download 6 of the 7 Harvard Business School Case Studies—one case will be distributed in class—and 8 Harvard Business Review Articles included on the syllabus. (We believe this is the easiest, most convenient, and cheapest way we could find to make this material available.) To access this account, each student must 1) pay an access fee at the College Bookstore and 2) take the receipt from the Bookstore to our Department Secretary Mrs. Anna Mcpherson. Anna will record that you have made payment, and will give you the password to the web site. Each student will be able to visit the site as many times as they like.

Additional reading materials will either be distributed during class or electronically accessible.

Overview and Objectives

Welcome to the senior seminar on international business policy and strategy, the capstone course for the IB&M major. We will examine both the principles associated with the formation and implementation of business strategy, as well as the latest research about business strategy, which challenges traditional ways of thinking. We will apply those ideas via case studies, simulations, and conversations with corporate managers.

For the semester, I have a several objectives in mind. I would like to help you:

Understand important concepts in business strategy;

Appreciate the complex set of factors that influence business and mangers,

Understand the challenges of globalization and rapid technological change to strategic thinking,

Sharpen your critical thinking skills,

Improve the clarity and effectiveness of your writing,

Become more confident and effective as a public speaker,

Appreciate the contributions you can make to the learning of others, and

Synthesize the many courses and experiences you have had as an IB&M major.

Evaluation

Within the first two weeks, I will divide the 12 members of the class into 3 teams of 4 students each, for the duration of the semester.

During the semester, we will encounter three types of readings: chapters from our textbook, case studies, and journal articles. On some occasions, I will facilitate our conversations. On others, we will engage in simulation exercises. And on others, teams of students will lead discussion or make presentations.

24% In our course, we will analyze 7 Harvard Business School Case Studies. For the first six, I will ask all students to submit a 1 to 2 page case analysis, which I will grade. Students will have the option of writing a seventh two page write-up. If the grade they earn on that write-up is higher than the lowest of the first six, I will throw out the lowest grade and replace it with the grade on the optional write-up.

6% There are 8 journal articles in the course syllabus. I will assign one team member to write a 1 to 2 page summary/analysis of each article, and submit it to me for evaluation. I encourage individuals to seek the comments of other team members before submitting their work. Following my comments, the student will make revisions and will then circulate the paper to other team members for their records. Thus, during the semester, each student will evaluate 2 articles and all team members will have a synopsis of all 8.

16% Class Preparation and Participation—Here, I am primarily interested in the quality of a students contributions to class discussions, and will use my judgment about those contributions as my first cut at the grade. However, I do know that while some students may not say as much as others in class, they are extraordinarily well prepared. Therefore, I will ask each of you to maintain a notebook of your reading notes, your reactions to class discussions, or other relevant material. At the end of the course, if you think it may help your Preparation Grade, you will have the option of submitting your notebook to me for my consideration.

24% Work on Capstone Simulation—This will essentially be the grade I assign to the Group for their work on the simulation exercise, including the written business plan, the written self-assessment, and the oral presentation. I reserve the right to adjust the grades of individual team members up or down, depending upon my judgment of individual contributions—in other words, I will be on the lookout for either heroic efforts on free riding.

12% In Module 4, we will do a week-long, simulated, international negotiation. As with the Capstone Simulation, I will award a team grade based upon student engagement and presentations.

18% Short Paper—For the final segment of the course, that on Strategy Implementation, I will ask you to write a 5 to 7 page paper which synthesizes the chapters of the text, the readings, the case studies, and the site visits.

Attendance Policy

Given the nature of the senior seminar, I expect all students to attend every class session. My expectations of course are subject to normal business practices—that is, I will respect serious illness or the need to attend very important personal matters, but will not look kindly upon casual absence.

Policy Regarding Plagiarism

I will adhere to the College policies regarding plagiarism that are presented in the Student Handbook. As a word of advice, do not put your reputation, a priceless asset, on the line for the chance at a better grade.

Course Outline, Spring 2002—Draft 1

Module 1: Competitive Advantage and Business Strategy

Session 1, Wednesday January 23. “Getting Started”

Fratantuono—An overview of the Class and an Introduction to Strategy (Syllabus and HIH Chapter 1)

Students—general conversation on experiences of the past year

Session 2, Monday January 28. “Strategic Environments”

HIH Chapter 2. “The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis”

HIH Chapter 3. “The Internal Environment: Resources, Capabilities, and Core Competencies”

Session 3, Wednesday, January 30. “Application”

Case Study, “Dow Corning Corporation Product Stewardship”

Session 4, Monday February 4, “Perspectives on Strategy”

C.K. Prahalad (1993) “The role of core competencies in the corporation.” Research Technology Management, November-December: 40-47

Michael Porter (1996). “What is strategy?” Harvard Business Review, Nov-Dec: 61-78.

Kathleen M. Eisenhardt and Donald N. Sull (2001). “Strategy as Simple Rules,” Harvard Business Review, January: 106-116.

Session 5, Wednesday February 6, “Application”

“Southwest Airlines: Using Human Resources for Competitive Advantage (A).” (Stanford Business School Case Study HR-1A)

Session 6, Monday February 11, “Business Strategy in an IT Age”

HIH Chapter 4, “Business-Level Strategy”

Philip B. Evans and Thomas Wurster (1997, Sept-Oct.) “Strategy and the New Economics of Information.” Harvard Business Review: 71-82

Session 7, Wednesday February 13. “Application”

“Charles Schwab Corporation (A)” (HBS Case Study 9-300-024)

Session 8, Monday February 18. “Views on Head to Head Competition”

HIH Chapter 5, “Competitive Dynamics”

Kathleen M. Eisenhardt and Shona L. Brown (1998) “Time Pacing: Competing in the Markets that won't Stand Still.” Harvard Business Review, March-April: 59-69.

David B. Yoffie and Michael A. Cusumano, (1999), “Judo Strategy,” Harvard Business Review, January-February, p. 71-81.

Session 9, Wednesday February 20. Application

“Leadership Online: Barnes & Noble vs. Amazon.com (A)” (HBS Case Study 9-798-063)

Module 2. Simulation Game

Special Session. Friday February 15: 2-4 PM. Introduction to Capstone

Both seminars convene.

“Team Member Guide for The Capstone Business Simulation”

By 12 Midnight, Sunday February 24, Students complete Practice Round 1

Session 10, Monday February 25 “Capstone I: Introduction to the Simulation”

Professor sequentially meets with Capstone teams to discuss PR1.

By 12 Midnight, Tuesday February 26, Students submit input Practice Round 2

Session 11, Wednesday February 27

Professor sequentially meets with Captstone teams to discuss PR2 and Team Strategy for Game.

Friday March 1, 5 PM—Deadline for students to submit input for Game Round 1 and submit copy of business plan.

Sunday, March 3, Midnight—Deadline for students to submit input for Game Round 2 of Capstone

Session 12, Monday March 4 “Capstone Work Session”

Professor sequentially meets with Capstone teams to discuss Game.

Wednesday, March 6, Midnight—Deadline for students to submit input for Game Round 3

Session 13, Wednesday March 6

Professor sequentially meets with Capstone teams to discuss Game.

Friday, March 8, 5 PM—Deadline for input for Game Round 4

Sunday, March 10, Midnight—Deadline for input for Game Round 5

Session 14, Monday March 11 “Capstone Work Session”

Tuesday, March 12, Midnight—Deadline for Game Round 6

Session 15, Wednesday March 13 “Capstone Work Session”

Thursday, March 14, 5 PM—Deadline for Game Round 7

Friday, March 15, 5 PM—Deadline for Game Round 8

Spring Break, Friday March 15 through Sunday March 24

Module 3. Extending the Business Model I: The Corporation

Session 16, Monday March 25, “Corporate Strategy”

Selected Segments, HIH Chapter 6, “Corporate Level Strategy”

John Hagel III and Marc Singer (1999) “Unbundling the Corporation.” Harvard Business Review: March, April: 133-141.

Session 17, Wednesday March 27, Open date

Students work on oral presentations and written summary of experience with Capstone simulation

Special Session: Friday March 29. “Reflections on Capstone”

Both seminar groups convene. Student teams make 10-minute oral presentations, followed by 10-minute Q&A, that analyze and evaluate the strategy and performance of their Capstone Company.

Student teams submit written evaluations of their strategy and performance during the capstone simulation.

Session 18, Monday April 1,

HIH Chapter 7, “Acquisition and Restructuring Strategies”

Kathleen M. Eisenhardt and D. Charlese Galunic (2000), “Coevolving: At Last, a Way to Make Synergies Work.” Harvard Business Review, January-February: 91-100.

Session 19, Wednesday April 3

“The AOL Time Warner Merger,” (HBS Case Study 9-701-036)

Module 4. Extending Business Strategy Part II: Going Global and Forming Alliances

In this Module, student-teams will explore the possibility of making a company a global venture and of forming a strategic alliance.

Special Session, Friday April 5.

Students read selected segments of HIH Chapter 8, “International Strategy”

Both seminars convene for a presentation, “International Strategy at Carlisle Syntec”

Session 20, Monday April 8. “The Political Risks of going Global”

Simulated negotiation 1

Session 21, Wednesday April 10, “The Political Risks of of going Global” (cont.)

Simulated Negotiation 2

Special Session, Friday April 12 “The Political Risks of going Global” (cont.)

Simulated negotiation 3

Session 22, Monday April 15, Cooperative Strategy

Segments of Chapter 9, “Cooperative Strategy”

Segments of Chapter 13, “Corporate Entrepreneurship and Innovation”

HBS Case Study, “Millennium Pharmaceutical”

HBR Article, “An interview with Mark Levin”

Module 5. Strategy Formulation and Implementation at Dickinson

Students will talk with members of the Community and examine key documents in order to evaluate Dickinson’s strategy formulation and implementation process.

Session 23, Wednesday April 17, Dickinson’s Strategic Plan

Preliminary discussion, Levels I and II of Dickinson’s Strategic Plan

Friday April 19, Special Session, “Strategic Vision at Dickinson”

Both seminar groups convene for a conversation with Dickinson President Bill Durden and Provost Neil Weissman

Session 24 Monday April 22, “Strategy Formulation at Dickinson”

Segments from HIH Chapter 12, “Strategic Leadership

Reflections about conversations with Bill Durden

Session 25 Wednesday April 24, “Strategic Leadership—a Comparison”

“GE’s Two Decade Transformation: Jack Welch’s Leadership, ” HBS Case Study 9-399-150

Friday April 26, Special Session on Strategy Implementation

Selected Segments, HIH Chapter 11, “Organizational Structure and Controls

Conversation with Bob Massa and Annette Parker

Session 26 Monday April 29, Strategy Implementation (cont.)

Students report for Course Evaluations

Conversation about Strategy Implementation

Session 27 Wednesday May 1, “Reflections on the Semester”

Market Cross Pub

Sunday, May 12, 6 PM: Deadline for 7-10 page final paper.

IB&M 400

Request Permission to Photocopy or Distribute for Free to Students

Case study: Dyer and Himstead, “Dow Corning Corporation Product Stewardship,” Pages 298-319. From, Cases in Leadership, Ethics, and Organizational Integrity: A Strategy Perspective, Irwin/McGraw Hill, ISBN 0-256-10790-03, Lynn Sharp Paine

Harvard Business Review Articles: Either Order or Request Permission to Photocopy

Reprint 0106G Interview with Mark Levin of Millennium Pharmaceuticals: Mastering the Value Chain

Reprint 96608 Michael Porter, “What is Strategy”

Reprint 0101G Kathleen M. Eisenhardt and Donals N. Sull, “Strategy As Simple Rules”

Reprint 98202 Kathleen M. Eisenhardt and Shona L. Brown (1998) “Time Pacing: Competing in the Markets that won't Stand Still.” Harvard Business Review, March-April: 59-69.

Reprint 97504 Philip B. Evans and Thomas Wurster (1997, Sept-Oct.) “Strategy and the New Economics of Information.” Harvard Business Review: 71-82

Reprint 99110 David B. Yoffie and Michael A. Cusumano, (1999), “Judo Strategy,” Harvard Business Review, January-February, p. 71-81.

Reprint 99205 John Hagel III and Marc Singer (1999) “Unbundling the Corporation.” Harvard Business Review: March, April: 133-141.

Reprint 00103 Kathleen M. Eisenhardt and D. Charlese Galunic (2000), “Coevolving: At Last, a Way to Make Synergies Work.” Harvard Business Review, January-February: 91-100.

Case Studies to Order from Harvard Business School to Order