BMGT – Management

Lecture 1: An Overview

Dr. Le Minh Hanh | Winter semester 2019/20

Outline

1. Course organization

2. Lectures

3. Exercises

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Outline

1. Course organization

2. Lectures

3. Exercises

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Course organization

 Course assessment
In-class exercises: 40%

Final exam: 60%

 Course schedule
The course is offered every winter semester. In the winter semester 2019/20, the lecturing period
takes place from 4.10.2019 to 25.10.2018. The post reading week comes afterward and final exam
is set on 1.11.2019. The retake exam is scheduled in the retake session.

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Outline

1. Course organization

2. Lectures

3. Exercises

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Number of newly established companies in Vietnam in the first 6 months of 2019

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What determines the success of firms?

• Some firms emerge to become highly profitable corporations in the world market (e.g. Microsoft,
Apple…).

• Contrarily, others cannot maintain profitable and disappear from the market (either as a start-up
or after a period of success like Enron Inc., Lehman Brothers).

• A large variety of factors determine the path of development (e.g. luck).

• Two important factors: strategy & organizational structure

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Management = Strategy & Organization

Strategy
• Which role does a firm take in its market environment against competitors as well as
consumers?
• Strategic instruments: Prices, product quality, investments, …
Organization
• What does a firm have to do, in order to generate the “optimal“ output from a variety of possible
inputs (capital, labor)?
• Management instruments: Organizational structure, incentives, …
- Decision rights (Who decides on what?)
- Task assignments (Who does what?)
- Compensation (What is being rewarded and in what manner does compensation take place?)
- Evaluation (How does a firm evaluate performance and what kind of actions are being
considered?)

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What determines the corporate value?

ORGANIZATIONAL-
ENVIRONMENT STRATEGY ARCHITECTUR INCENTIVES
Prices Decision rights AND
External environments
Quality Tasks
Internal Environment ACTIONS
Industry Incentives
Evaluation

CORPORATE VALUE

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Part 1: Business Environment Analysis

Topic 2: Evaluating a company‘s external environment

 General environment analysis
 Industry analysis

Topic 3: Evaluating a company’s resources, capabilities and competitiveness

 Examination of current strategy of firms
 Analysis of resources, capabilities and SWOT of firms
 Analysis of overall competitiveness of firms

Textbook:
Thompson, A.; Gamble, J.E., Peteraf, M. and Strickland iii, A.J. (2016) Crafting and executing
strategy: The quest for competitive advantage, concepts and cases, 20th Edition, Mc Graw Hill
Education

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Environment analysis and planning

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Environment analysis and control

1. Every strategy is based on certain planning premises. Thus, premise control is a component of
strategic management control system.

2. Strategic control refers to management efforts to track a strategy as it is being implemented,

detect problems or changes in its underlying premises, and make necessary adjustments

3. Premise control is the management process of systematically and continuously checking to

determine whether premises upon which the strategy is based upon are still valid.

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Part 2: Strategic management

Topic 4: An overview of strategic management

 Formulation – implementation - controlling cycle
 Corporate strategy – Business strategy – Functional strategy
Topic 5: Strategic management at business unit level
 The five generic competitive strategy model by Michael Porter (1980)
 Other strategic moves
Topic 6: Strategic management at corporate level
 Corporate rationales and diversification options
Textbook:
Thompson, A.; Gamble, J.E.; Peteraf, M. and Strickland III, A.J. (2016) Crafting and executing
strategy: The quest for competitive advantage, concepts and cases, 20th Edition, Mc Graw Hill
Education

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Strategic Management Process Overview

Formulating/Crafting Executing Controlling

Strategic learning

Mintzberg and Waters (1985): Of strategies, deliberate and emergent

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Part 3: Organizational structure

Topic 7: Decision rights

Topic 8: Bundling tasks

Topic 9: Incentive compensation & Performance evaluation

Textbook:
Brickley, J.A.; Clifford, W.S.; Zimmerman, J.L. (2016) Managerial economics and organizational
structure, 6th Edition, Mc Graw Hill Education

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Organizational structure

Organizations are like three-legged stools

1. Decision rights assignment

2. Rewards
3. Performance evaluation

Decision rights
(Chapter 12-13) Evaluation
(Chapter 16-17)
Rewards
(Chapter 15)

16 © Friebel and Zubanov BMGT – Summer 2014

Outline

1. Course organization

2. Lectures

3. Exercises

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EXERCISE SESSIONS

1. Industry’s driving forces

2. Strategic groups in an industry
3. Value chain analysis
4. Competitiveness analysis
5. Differentiation advantage analysis
6. Low cost advantage analysis
7. Differentiation strategy analysis
8. Decision rights in organizational structure
9. Task bundling in organizational structure
10. Performance measurement systems
Two parts to be included in each work:
- Critical discussion of theories
- A practical case analysis
Submission: 1 paper (20 pages) + presentation (30 minutes)

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Discussion schedule

Outline discussion: Friday, 11.10.2019

Poster presentation and Peer review: Thursday, 17.10.2019

Presentations: Thursday, 24.10.2019

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Outline

1. Course organization

2. Lectures
Q&A
3. Exercises

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