BUSAD/STB 501

Strategy and Planning

Fall 2009

Instructor: Dr. Brad Shrader

University Professor
Ralph and Jean Eucher faculty fellow in business ethics
Office Hours: by appointment
3185 Gerdin Business Building
294-3050 (office)
cshrader@iastate.edu
http://www.bus.iastate.edu/cshrader/

Required Readings and Cases:

Bunge: Food, Fuel, and World Markets, by Khanna, Mingo and West, Harvard Business
School case, 2007.

Cargill (A), by Goldberg and Porraz, Harvard Business School case, 2007.

ConAgra Foods: The Next Chapter, by Goldberg and Shelman, Harvard Business School
case, 2007.

Core Competence of the Corporation, by Prahalad and Hamel, Harvard Business Review
article, 1990.

Monsanto: Realizing Biotech Value in Brazil, by Bell and Shelman, Harvard Business
School case, 2007.

South Dakota Wheat Growers, by Bell and Shelman, Harvard Business School Case,
2008.

Strategic Planning at United Parcel Service, by Garvin and Levesque, HBS, 2006

The Five Competitive Forces that Shape Strategy, by Porter, Harvard Business Review
article, 2008.

The Global Farmer and the Future of Soybean Production, by Goldberg, Harvard
Business School case, 2004.

Course Description:

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The purpose of this course is to introduce the MBA student to the principles of strategy
formation and evaluation and to the fundamental concepts of corporate and competitive
strategy. Specifically, this includes the following:

1. Examining how firm managers form strategy through strategic plans (mission,
objectives, and strategies), scenarios, balanced scorecards, and corporate cultures.
2. Analyzing the firm’s competitive strategy within its industry context; and assessing
firm strengths and weaknesses in context of environmental opportunities and threats.
3. Identifying and forming competitive strategies (cost leadership, differentiation, and
focus).
4. Assessing the firm’s core competencies.
5. Identifying and forming corporate strategies (growth, stability, and retrenchment).
6. Evaluation of the firm’s corporate strategy using portfolio analysis.

NOTE:
Please address any special needs or special accommodations with me at the beginning of
the semester or as soon as you become aware of your needs.

Performance Evaluation Criteria:

Class participation online case discussions - individual 20%

Short written project – part 1 10%
Short written project – part 2 20%
Short written project – part 3 10%
Final integrative case project 40%
Total 100%

Class participation in online case discussions

Each individual will be graded on class participation, which means the contribution made
to online case discussion. The instructor will keep a journal of daily class proceedings.
Each student is expected to make a substantive online contribution for each case. The
objective of this requirement is to present examples of strategy formation in practice and
help create a forum for the exchange of ideas.

Required case readings are identified in the course outline. There are short PowerPoint
presentations describing and orienting each class member to each case. It is expected that
each student will make a major substantive contribution to class discussion at least once
for each case during each session for each part of the course. Post your comments for
case discussions to WebCT.

How online contribution is assessed:

• 20 % - Participation with high interest and enthusiasm in all discussions.
Consistent substantive contributions.

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 • 15 % – Engaged in most discussions. Responded with high quality comments and
contributions.
• 10 % – Engaged in most of discussions and responded with good input when
prompted.
• 5 % – Responded infrequently with substantive contributions.
• 0 % –No comments.

Short written assignments:

Each major section of the course has a short assignment with which it is associated. The
goal is to test understanding of the conceptual material for particular sections of the
course. Responses to the questions should be submitted electronically. The written
responses for parts 1 and 3 should not exceed three pages. The written project for part 2
should not be more than five pages. Answer the questions completely using as much
course material as possible and to not re-hash the case.

Final integrative project:

Each class member is required to address the final integrative questions indicated at the
end of this outline. The final project is worth a total of 40 points or 40% of the final
grade. The final project is to be no more than ten pages in length (double-spaced with
standard margins). Do not include a title page. Answer the questions using as much
course material as possible (including readings, other cases/chapters, and lectures) in
order to provide answers to the questions. Please submit the final project via email.

Full points will be awarded to those that address all the questions thoroughly using as
much course content material as possible. It is critical that you refer to content material
from lecture, notes, texts, and discussion in forming responses.
• 40 points – answered questions thoroughly using course material accurately
• 35 points – addressed most of the questions, used some course material
• 30 points – addressed questions, lacked content
• 25 points and below – did not fully address questions with course content

ASSIGNMENT AND SESSION SCHEDULE

Part One – Formulating Strategy through Formal Strategic Planning

Goal of part one is to create an understanding of the components of strategic

planning and develop an understanding of other methods of formal planning- such
as scenarios and balanced scorecards.

Reading Assignment for Part One

Course outline
Strategic planning at United Parcel Service case
• Cargill (A) case

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 • Monsanto: Realizing Biotech Value in Brazil case
• South Dakota Wheat Growers Case

PowerPoint files and presentations for Part One

• Formal Strategic Planning
• SWOT
• Scenario Planning
• Balanced Scorecard
• Corporate Culture
• Formal planning and competitive strategy examples

PowerPoint files with case questions for online discussion:

• UPS case
• Cargill (A)
• Monsanto
• South Dakota Wheat Growers

Short written assignment (select one):

Describe strategic planning at both Cargill and UPS. In your view, which
firm has the stronger and more useful process? Why?

Or – Do a SWOT analysis for Monsanto. What are the major SO

outcomes of your analysis? Should Monsanto increase it breeding and
biotechnology investment in Brazil based on your analysis? Should
Monsanto apply their POD system to other countries?

Or – Do a SWOT analysis for South Dakota Wheat Growers. What are

the major SO outcomes of your analysis? What are the major
opportunities for cooperatives? Are there any threats? Based on your
analysis, how do you suggest SDWG develop its brand?

Please email your assignment to: cshrader@iastate.edu

Due by September 14

Part Two – Forming Competitive Strategy

Goal of part two is to understand the various competitive battlefields (industry,

product, future, time, etc.) and to become able to analyze the attractiveness of
industries and the competitive advantages of firms/products.

Reading Assignment for part two

The Global Farmer and the Future of Soybean Production
• ConAgra Foods: The Next Chapter

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 • Monsanto: Realizing Biotech Value in Brazil
• The Five Competitive Forces that Shape Strategy
• Core Competence of the Corporation

PowerPoint files and presentations for part two

• Battle of Trafalgar /What is competitive strategy?
• Competitive strategy (and industry analysis/ Porter’s model of five
industry forces/ Generic competitive strategies, competitive
advantage)
• Advantage of Nations
• Syngenta- Iowa State University Handout
• Syngenta examples
Core Competencies and Resources
Competing against Time
• Hyper-competition (new)
• 7S framework
Judo Strategy
• Innovator’s Dilemma
• The Five Competitive Forces that Shape Strategy
• Core Competence of the Corporation
• Formal planning and competitive strategy examples

Online case discussion questions in PowerPoint files:

The Global Farmer and the Future of Soybean Production
• ConAgra Foods: The Next Chapter
• Monsanto

Short written assignments (select one):

Develop an industry analysis for the global soybean industry.
Is the soybean industry attractive?

Or- What is El Tejar’s generic competitive strategy?

What is Grupo Maggi’s generic strategy?
What is the generic strategy of Halderman Companies in the soybean
business?
Which of the three soybean companies has the best competitive position?

Please email your assignment to: cshrader@iastate.edu

Due by November 2

Part Three – Forming corporate-level strategy and analyzing strategy using

portfolio analysis

Reading Assignment

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 • Bunge: Food, Fuel, and World Markets
• ConAgra Foods: The Next Chapter

PowerPoint files and presentations for part two

• Corporate-level strategy – PowerPoint
• Strategy evaluation using portfolio analysis ( BCG matrix, GE
business Screen, PMEP Matrix, PIMS, etc.)

PowerPoint files with online case discussion questions:

• Bunge
• ConAgra

Short written assignment:

Do a very brief and general portfolio analysis for Bunge. Is its portfolio
balanced? Describe Bunge’s corporate growth strategy.

Please email your assignment to: cshrader@iastate.edu

Due by November 30

Final integrative project:

Step 1 – Select one of the following firms to analyze (cases):

• Bunge
• Cargill
• ConAgra
• Monsanto
• South Dakota Wheat Growers

Step 2 – Analyze the business environment and formal planning activities for the
firm you selected in step one (10 points).
• What is its mission? What do you think of the mission statement?
• Does it engage in formal strategic planning? How?
• If it does plan- evaluate its planning activities. Are they providing
corporate direction?
• If not- what substitutes for planning are there? Culture? BSC?
• Describe the corporate culture of your firm.
• What are the major objectives set forth by the firm (either explicit
or implicit)?
• Do a brief SWOT analysis for your firm. What are the SO
opportunities?

Step 3– Analyze the focal industry and competitive advantage (if any) for the firm
you selected (20 points).

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 • Describe the five forces.
• Is the industry attractive? Why?
• What is/are the major generic strategies for the major products?
• How is your firm doing in terms of international competitive
advantage and the four factors of Porter’s diamond?
• Describe your firm’s core competency (or competencies).
• Is your firm a Judo Strategist and/or Hyper-competitor?
• Is it engaging in any form of disruptive technology or is it being
affected by the innovator’s dilemma in any way?
• Based on your analysis, what is your firm’s major competitive
advantage?

Step 4– Analyze the corporate-level strategy for your firm (10 points).
• What business is your firm in?
• Describe your firm’s portfolio (using the BCG, GE Business
Screen and/or PMEPM). Is it balanced?
• How might your firm grow in the future?

Use the class case as your source of data – there is no need to update the case or go with
outside sources. Go with what it provides. If you feel you need more data- make
educated estimates.

Final project is ten pages max. Please submit electronically to: cshrader@iastate.edu
Due by December 14