UNIVERSITAS GADJAH MADA

FACULTY OF ECONOMICS AND BUSINESS

THE MASTER OF MANAGEMENT PROGRAM

Course Syllabus

STRATEGIC MANAGEMENT
Facilitator: T. Hani Handoko, Ph.D
Office: Master of Management FEB UGM Building, 5th Floor
Phone: (0274) 511036, 562222, 515536 (ext. 106) (O); (0274) 880-490 (H)
E-mail: hanihandoko@ugm.ac.id and hanihandoko@ymail.com
Office Hours: Monday, 02.00-03.00 pm; Friday, 09.00-11.00 am; or by appointment

Course Description
The course of strategic management is intended to be a challenging, demanding, and
exciting (integrating) course for the curriculum of management education. It is first and
foremost a course about “strategy” and about “managing strategy formulation and
implementation processes,” especially in the pursuits of corporate growth through
sustainable development. As a “big picture” course, this class is also designed to assist
the student in integrating much of the knowledge and skills that have gained in the core
management curriculum. The problems or issues of strategy formulation, formation, and
implementation or execution cover the whole spectrum of business and management. The
main objective is to sharpen your abilities to think strategically, to make strategic
decisions, and to weigh things from the perspective of the total enterprise. It means
systematically exposing the student to the rigors of industry and competitive analysis, to
the characteristics of a global market environment, to the critical linkages between
competitive strategy and sustainable development issues to the important ingredients of
strategic moves and plans, and to the varied managerial tasks associated with
implementing and executing the chosen strategy.

Course Objectives
1. To develop your capability to think strategically about a company, its business
position, and how it can gain sustainable competitive advantage and sustainable
development.
2. To build your skills in conducting strategic analysis in a variety of industries and
competitive situations.
3. To improve your ability to manage the organization process by which strategies get
formulated, formed, and implemented or executed.
4. To integrate and synthesize the knowledge and skills learned in earlier courses (e.g.
marketing, finance and accounting, production/operations, human resources, and
organizational behavior).

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5. To integrate environmental and social issues into the strategic management process.
6. To develop your power of managerial judgments, help you become familiar with the
problem of top management, and provide you with a stronger understanding of the
competitive challenges of a global business environment and stakeholder activisms
and pressures on sustainable development.
7. To apply the theory and technique of strategic management to actual business
situations by utilizing case methods.

Required Texts and Materials

Thompson, Jr., A. A., Peteraf, M. A., Gamble, J. E., & Strickland III, A. J. 2018. Crafting
and executing strategy-The quest for competitive advantage: Concepts and cases,
21th edition. New York, NY: McGraw-Hill.

Supplemental Text
Porter, M. E. 1980. Competitive Strategy: Techniques for Analyzing Industries and
Competitors. New York: The Free Press. (Porter)

Class Requirements
1. Class attendance and participation in case discussion. Attendance at all class
sessions is expected, especially class discussion of assigned cases. Absence from
class is a serious matter and you should not violate the policy of the MM Program
regarding the class attendance.
Due the fact that presentation and participation in class discussion of cases count
20% of your grade, each student must contribute significantly to in-class analysis of
the cases. Each student is required to be an active participant and make meaningful
comments on cases being discussed. Your grade on class participation is something to
be earned via consistent contribution to class discussion. You should, therefore, make
a conscientious effort to be sufficiently prepared to contribute to the class discussions.
The responsibility for making the learning process succeed is yours. PARTICIPATE!

2. Case Reports. Each student is required to submit an executive summary (limited to

2-3 pages) for all cases. These written assignments are due on the day the case is
scheduled for class discussion (see the course outline) and should be turned in to your
instructor at the end of class period. Reports that are turned in after the scheduled
class period are eligible for a grade no higher than a C. No late reports will be
accepted if submitted more than 3 class days past the scheduled due date (except by
prearranged consent of the instructor).

3. Exams. Midterm and final examinations will be conducted to test your knowledge,
understanding, and ability to apply the course material in solving actual managerial
problems. The exams will contain short cases and short answer (easy-type) questions,
and they will not be cumulative.

4. Field project report. The purpose of this project is to focus thought, course material
and library research on a specific, strategic managerial problem. Students are required

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 to submit a report on the result of a careful thought and systematic analysis in
applying strategic management concepts and techniques at an actual managerial
situation in an organization that you are familiar with. The report is to be prepared on
an individual basis. Evaluation of the report will be conducted on the basis of such
factors as (a) clarity of problem presented, (b) adequacy and quality of analysis and
proposed actions, (c) form and technical detail, and (d) course material integration
and understanding.

Academic Integrity
The academic life prospers due to its adherence to honesty and integrity. Plagiarism,
cheating and other types of academic misconduct are not tolerated in the MM FEB UGM.
The faculty together with students assumes responsibility to assure that learning integrity
works and is absorbed by the member. The assignment and exam the students submitted
must be the work of every student unless otherwise stated by facilitator that student must
collaborate with other student.

Student Evaluation
Your course grade will be based on the following components and point distribution.
 Midterm exam 30 points
 Final exam 30
 Field project report ("big paper") 20
 Presentation, participation, and case discussion 20

Course Outline
Session Topic Reading Teaching
Assignment Methods
Introduction to strategic management  Discussion
1.  Course overview teaching
 The concept of strategy Chapter 1*
 Strategic management process

Charting a company’s direction  Discussion

2.  Developing a strategic vision: Mission, vision and Chapter 2 teaching
values  In-class
 Setting goals and objectives exercise
 Crafting a strategy  Case
 Case #1: Costco Wholesale in 2016: Mission, discussion
Business Model, and Strategy Case 4**

External environment analysis  Discussion

3.  Analyzing political, economic, social-cultural, Chapter 3 teaching
technological, and ecological environments Porter: 1, 3, 4, 7, 8  Critical
thinking

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  Industry Analysis: Porter’s (1980) Five Forces,  Case
industry value-chain, and strategic groups discussion
 Competitive analysis
 SWOT Analysis: Identifying opportunities and
threats
 Identifying key success factors (KSFs)
 Case #2: Competition in Energy Drinks, Sports
TBD
Drink, and Vitamin-Enhanced Beverages

Internal analysis  Discussion

4.  SWOT analysis: Identifying strengths and Chapter 4 teaching
weaknesses Porter: 2, 5, 6  In-class
 Competitive advantage and core competence exercise
concepts – Resource-based view (RBV)
 Assessing resources and capabilities as sources of
competitive advantage – applying value-chain
analysis and VRIO approach
 Case #3: Coach Inc. in 2012: Its Strategy in the
“Accessible” Luxury Goods Market? TBD

Business-Level Strategy  Discussion

5.  Formulating business strategy Chapter 5 teaching
 Porter’s generic strategies  Critical
 Beyond competitive strategy thinking
 Case #4: Gap Inc.: Can It Develop a Strategy to Case 11  Case
Connect with Consumers in 2016? discussion

Strengthening a company’s competitive position Chapter 6  Discussion

6.  Strategic moves, timing, and scope of operations teaching
to improve a company’s competitive position  Critical
 Competitive strategies in the fragmented industry Porter: 9-12 thinking
 Competitive strategies and industry evolution  Case
 Case #5: Uber in 2016: Can It Remain the discussion
Dominant Leader of the World’s Fast- Case 12
Emerging Ride-Sharing Industry

Strategies for competing in foreign markets  Discussion

7.  Multi-domestic strategy Chapter 7; teaching
 Global strategy Porter: 13  Case
 Case #6: Ford Motor Company: New Strategies discussion
for International Growth Case 18

Midterm Exam Chapters 1-7

Corporate-level strategy  Discussion

8.  Formulating corporate strategies – diversification Chapter 8 teaching
 The concepts of corporate advantage and Porter: 14, 15, 16  Critical
parenting advantage thinking

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  Analyzing the strategies of diversified companies
– applying growth-share matrices

Corporate-level strategy (cont…)  Case

9.  Case #7: LVMH in 2016: Its Diversification into Case 21 discussion
Luxury Goods

Corporate-level strategy (cont...)  Discussion

10.  Case #8: The Walt Disney Company: Its TBD teaching
Diversification Strategy in 2014  Case
Discussion

Strategy, Ethics, Social Responsibility, and  Discussion

11. Environmental Sustainability teaching
 Linking strategy with ethics, corporate social Chapter 9  Case
responsibility and environmental sustainability Discussion
 Case #9: Conflict Palm Oil and PepsiCo’s Ethical
Dilemma Case 31

Strategy implementation
12.  Creating fits between strategy and organizational Chapter 10
factors: The 7S framework
 Building organizational capabilities
 The “8S integrated” approach – the 7S +
Sustainability
 Case #10: Nucor Corporation in 2016:
Contending with the Challenges of Low-Cost Case 27
Foreign Imports and Weak Demand for Steel
Products

Strategy implementation (cont…)  Discussion

13.  Managing internal operations Chapter 12 teaching
 Case discussion #11: Toyota Motor Company:  Case
Losing Its Quality Edge? TBD discussion

Strategic evaluation and control  Discussion
14.  Corporate culture and leadership teaching
 Case #12: Southwest Airlines in 2016: Culture,  Case
Values, and Operating Practices Case 25 discussion

Final Exam Chapters 8-12

Notes:
* Chapters refer to Thompson, Peteraf, Gamble, and Strickland (2018).
** Case in Thompson, Peteraf, Gamble, and Strickland (2018)
TBD To be distributed
HH/feb ugm