1

MBA 406 - MBA Integrative Experience William Forster, Ph.D. Fall 2011 Office: Rauch #369 Course: Office Hours: Thurs 9:15 am - 12:00 pm Schedule: All other days/times by appt. E-mail wif209@lehigh.edu MBA 406 Tuesday 6:10-9:00pm Rauch 261

Phone: (610) 758-3435

Course Description The MBA Integrative Experience is places an emphasis on strategic management as a key tool for creating and sustaining organizational competitive advantage. By taking the point of view of the general manager, we will view the organization from an overall perspective in the context of the firms internal and external environment. We will examine historical perspectives, contemporary theories, and practical applications all in the spirit of helping you develop a broad understanding of strategic management issues and solutions. This course will expose you to rigorous theoretical analysis while providing you with hands-on, simulated real world business experience. As the capstone experience in the College of Business & Economics MBA program, this course requires that you integrate the concepts, knowledge, and skills acquired in previous functional courses and creatively apply them toward understanding and analyzing strategic management issues. Course Goals By the end of the course, MBA students will be able to: 1) 2) 3) 4) 5) 6) Embrace a general management perspective think strategically. Develop a working knowledge of crucial strategic management concepts. Hone basic skills for analyzing strategic issues. Formulate and solve complex unstructured organizational problems. Advance competence in a variety of primary and supporting organizational functions (i.e. the firms value chain), Refine self-directed work team skills such as setting and implementing agendas, understanding other people's perspectives, and dealing with people over whom you have no formal authority. Sharpen written and verbal communication skills in order to more effectively inform and influence target audiences. Develop an understanding of the global nature of business. Develop an understanding of sustainability initiatives in business management under the broad scope of businesses ethics. Discuss the steps in resolving ethical dilemmas in business.

7) 8) 9) 10)

The course objectives will be achieved through an array of methods including case discussions, in-class discussions/assignments, case analyses, lectures, and a business simulation competition. The business simulation competition requires thoughtful and timely decisions in order for you to successfully start and operate a business firm in the computer hardware industry. Course Readings The text offers a comprehensive and contemporary treatment of the field of strategic management. The assigned cases from the back of the text must be completed in preparation for our class meetings. By coming to class prepared, we will have a lively dialogue on the subject matter that
1

will serve to raise our collective level of understanding. You will also find that our text will be especially useful in providing you with in-depth guidance for your team case analyses and business simulation assignments. Text: Hitt, Ireland, and Hoskisson (2011). Strategic Management: Competitiveness and Globalization, 9th Edition, Southwestern Publishing. ISBN: 978-1-4390-4230-4. Business Simulation Software Certificate: International Corporate Management with outsourcing version of Marketplace Business Simulation, ISBN: 0-744413-6-8, Innovative Learning, Inc. (available at University Bookstore) Additional readings from current articles as posted on CourseSite. Preparation This is not a traditional lecture based course. The course will consist primarily of participant-centered case discussions and student-led analysis. Each week we will discuss a case in some depth as a class, trying to understand the issues the organizations and their managers face. Your classmates and I expect you to attend and be well prepared for each class, having read the required conceptual material and analyzed the assigned case study ahead of time. We also expect you to play an active role in class discussion. If all class members prepare for, and actively participate in, each class discussion, we will all learn more from each other and enjoy the course more. Short, occasional lectures will supplement the cases by suggesting different frameworks and tools that may be useful in addressing the issues illustrated in the cases. I will cold call on students to open the class and to continue the discussion of the case. Adequate preparation is essential for the case method to be effective. Case discussions are intended to present dilemmas as they are encountered by managers, so it is important to deal with the cases as you find them (i.e. no Monday morning quarterbacking based on knowledge of what happened after the time frame of the case). In case discussion, the present tense should be interpreted as referring to the time frame of the case or its end. In evaluating the cases, you should use the concepts and models discussed in the text. Learning how to apply these concepts and models is essential for success in this class. Ideas from both the current days reading and from prior readings are often useful in the case analysis. Typical Class Outline Instructor Led Case Discussion: The first half of most class sessions will be an instructor led case discussion and lecture. You are expected to have read and thoroughly prepared the first case of each evening. In a case based course such as this one, it is imperative that everyone be familiar with the case at hand and be ready to jump into the discussion with his or her own thoughts, perspectives, and analyses. Most of your class contribution grade will be based on the quantity and quality of your case based discussions. For guidelines on analyzing an organization and addressing case analyses issues, refer to "Preparing an Effective Case Analysis" found in your Hitt, et al., textbook. Effective presentations should follow these guidelines and incorporate the appropriate course material, such as critical events, financial data, and the like. To help you with these case analyses assignments, we will spend time in our first class meeting discussing case analyses and the "more fine-grained" key points that should be considered in your analyses and presentations. Student Led Case Presentations: The second half of most classes will consist of student presented cases and case discussions. Each student team will present a case once during the semester. Even if you are not presenting the case, you are still expected to be generally familiar with it. Teams presenting each case need to have carefully read the assigned case and to prepare an analysis addressing the strategic
2

issues highlighted in the case. In addressing the strategic issues, be sure to carefully consider the case facts and integrate as much course material as appropriate. Teams presenting are required to prepare a concise, high-level summary of the case and to present their case analysis and recommendations. Each team is also required to lead class discussion after their presentation (20-25 minute presentation, ~10 minute discussion). The grading rubric for all team presentation can be found at the end of this syllabus at attachment 2. Course Requirements Class Contribution: Our on-going dialogue each week and in-class assignments demand your active involvement. Your class contribution grade will be based on both the quantity and quality of your in class participation during case and other discussions. The easiest way to earn class contribution points is to perform a thorough case analysis, and express your insights during our case discussions. You should read, analyze, and be ready to discuss every instructor led case in this course. We will talk about what constitutes a quality comment during our first class, and around mid-term in the course, you will provide me with a one-page write-up that will serve as your Class Participation Self-Appraisal. I will review your write-up and offer comments to you to let you know how you are performing with regards to class contribution. Individual Case Analysis: You will select one case from the student led case presentations (not the one your group is presenting) and prepare an individual analysis of the case before the case is presented. This written cases analysis should be less than 20 pages long (double spaced not including charts), and should focus on the areas of the case you find the most important. During the student led case presentation, I will ask for any insights you may have in addition to the ones highlighted by the team presenting the case. This is an individual assignment and should be entirely your own work -you should not use ideas, input, or materials from anyone else. The grading criteria can be found in attachment 3 at the end of this syllabus. Teamwork: The class will be assigned into groups of 3-6 members per team. Team assignments will be made during our first class meeting. The teams will remain intact for the case analysis assignment and business simulation game competition and presentations. As you already know, successful teamwork requires that each member be flexible and responsive to others in terms of temperament, abilities, and schedules. Moreover, it is imperative that each team member work together in order to maximize your teams success and the amount of fun to be had from these experiences. Since these are team projects, I will assign a group grade based on my evaluation and the evaluation of your peers. The peer evaluations will come from your teammates and from class members not on your team. For the graded, team based portions of this class do not work with anyone other than your teammates, the instructor, and the TA. If you have questions on acceptable collaboration, please never hesitate to ask. Team Business Simulation Game Competition. The team business simulation competition requires that your team run a simulated business organization from start-up to maturity. In doing so, your team will formulate and implement strategic decisions on a weekly basis for twelve decision periods. Your team's decisions are due into the Marketplaces Processing Center no later than 12 noon on the required day. Once the processing center has all your teams decisions, they will process your decisions and distribute the results to you and me within 24 hours, more often within an hour that same day. Each team will be competing against the other teams in our class. Your objective is to maximize your firm's performance based on the nine criteria contained in the games Balanced Scorecard. The ten criteria include: 1) total business performance, 2) financial performance, 3) market performance, 4) marketing effectiveness, 5) investments in the firms future, 6) human resource management 7) creation
3

of wealth, 8) asset management, 9) manufacturing productivity, and 10) financial risk. To continually blend and integrate our readings with the business simulation competition, the in-class case analysis assignments will sometimes require that you consider certain aspects of your team's simulation game results, decision processes and decision rationale. Team Business Plan Presentation As part of the simulation, each team is required to create a comprehensive business plan presentation for their firm. You will give a presentation to Professor Forster (no more than 20 minutes in length). Additionally, as part of your teams business plan, each team is to conduct both a Financial Comparison and Strategic/Tactical Comparison between their simulated PC firm and a real firm in the computer hardware industry of your choosing (e.g., Dell, Gateway, HP, Apple, IBM). The required elements for the Financial and Strategic/Tactical Comparisons are included in attachment 1 at the end of this syllabus. Please provide a copy of your slides at the time of the presentation. Team Final Oral Report Each team is also required to present a "Final Report on Operations". This requires an oral, highlevel presentation to the entire class (no more than 30 minutes in length). Although a formal written Final Report of Operations is not required, a copy of your presentation should be supplied to Professor Forster. The Final Report on Operations should encompass four areas: 1) Executive Overview. 2) Summary of Operations. 3) Summary of Financial Results. 4) Future Plans. Suggestions for the "Final Report on Operations" will be provided in class. Finally, I understand that the case analysis and the business simulation game are outcomeoriented, however, your grade depends heavily on your ability to support your actions and recommendations. Logical, persuasive arguments are critical to receiving a good grade. All possible recommendations and decisions involve tradeoffs that need to be addressed in analyses and class presentations.

Course Grading Framework (I) Class Participation 100 points (I) Individual Case Analysis 50 points (T) Team Case Presentation 50 points (T) Final Presentations 30 points (T) Business Simulation 70 points Business Plan Presentation 20 Points Simulation Performance 50 points ( >class median = full pts, < class median=1/2 pts) Total Business Performance = 12 pts Financial Performance = 6 pts Market Performance = 6 pts Marketing Effectiveness = 4 pts Investments in Firms Future = 4 pts Human Resource Management = 2pts Creation of Wealth = 6 pts Asset Management = 4 pts Manufacturing Productivity = 4 pts Financial Risk = 2 pts ---------------------------------------------------------------------------------------------------TOTAL POINTS 300 points (I) = Individual Grade (T) = Team Grade

Final grades will be based on the following percentage system: 92% - 100% = A 90% - 91.9% = A87% - 89.9% = B+ 82% - 86.9% = B 80% - 81.9% = B70% - 79.9% = C Less than 70 % = F Note: Grades of C- and below may not be used toward your MBA degree. Any student receiving a grade of C- or below in an MBA core course must repeat the course to be eligible for graduation. Rebuttals to Grading Any controversies regarding the grading of class participation, the Business Plan, Final Report on Operations, and/or Business Game Results must be approached through a typed, one-two page paper submitted to Professor Forster detailing the reason(s) for consideration of additional points. Additional points may be awarded based on the logic and thoroughness of your argument as well as any supporting documentation that you can provide which will help substantiate your position. My number one priority is to ensure that each of you is evaluated fairly and that your grades in this course accurately reflect the quantity and quality of your contributions. By insisting that any grading controversies be approached in this manner, we transform a potentially unpleasant activity into a positive, learning experience.

Policies The work you do in this courseeither your teamwork or your individual work--- must be your own. This means that you must be aware when you are building on someone elses ideas and acknowledge when you do so. This includes the ideas of your classmates, your professor, and the authors you read. If you ever have questions about drawing the line between others work and your own, ask me and I will give you clear guidance or you may visit Lehighs Navigating Information page at http://www.lehigh.edu/library/infolit/tutorials. You are responsible for all material covered and all announcements made during each class. Missing class is NOT a valid reason for not being aware of any additional assignments or modifications to this syllabus. Statement of Disabilities If you have a disability for which you are or may be requesting accommodations, please contact both your instructor and the Office of Academic Support Services, University Center 212 (610-7584152) as early as possible in the semester. You must have documentation from the Academic Support Services office before accommodations can be granted. Changes The course syllabus provides a general plan for the course; deviations may be necessary and will be communicated in class and over CourseSite. Announcements Please keep an eye on your e-mail and CourseSight for class specific announcements.

(Tentative) COURSE SCHEDULE Please check CourseSite for the current schedule
1st Half of Class 2nd Half of Class Course Introduction HIH: Chapter 1: Strategic Management Marketplace Simulation Introduction Appendix: Case Analysis Choose Teams Case: New York Times Simulation: Quarter 1 Due at Noon on Friday HIH: Chapter 2 - External Environment HIH: Chapter 3 - Internal Environment Case: Pro Clean Student Led Case: Nintendo Simulation: Quarter 2 Due at Noon on Tuesday HIH: Chapter 4 - Business Level Strategy HIH: Chapter 5 - Competitive Strategy Case: Nucor Student Led Case: Southwest Simulation: Quarter 3 Due at Noon HIH: Chapter 6 - Corporate Level Strategy Case: Motorola Student Led Case: Alibaba Simulation: Quarter 4 Due at Noon Business Plan Presentations (4 Teams) Simulation: Quarter 5 Due at Noon Business Plan Presentations (4 Teams) Simulation: Quarter 6 Due at Noon NO CLASS - Lehigh University Pacing Break Simulation: Quarter 7 Due at Noon HIH: Chapter 7 - Mergers & Acquisitions HIH: Chapter 8 - International Case: Henkel Student Led Case: TNK-BP Simulation: Quarter 8 Due at Noon Readings on CourseSite Case (instructor led): Great Lakes Simulation: Quarter 9 Due at Noon

30 Aug

6 Sep

13 Sep

20 Sep

27 Sep

4 Oct

11 Oct

18 Oct

25 Oct

1 Nov

1st Half of Class 2nd Half of Class HIH: Chapter 9 - Cooperative Strategy HIH: Chapter 11 - Structure & Controls Case: Ebay Student Led Case: Nike Simulation: Quarter 10 Due at Noon HIH: Chapter 12 - Strategic Leadership Case: Room and Board Student Led Case: Dell Simulation: Quarter 11 Due at Noon HIH: Chapter 13 - Strategic Entrepreneurship Case: Under Armour Student Led Case: Apple Simulation: Quarter 12 Due at Noon Team Time to Work on Simulation/Presentation or Make-up Lesson if Required

8 Nov

15 Nov

22 Nov

29 Nov

Final Presentations (4 Teams)

6 Dec

Final Presentations (remaining teams)

Course Evaluations & Class wrap-up

Attachment 1: Business Plan Presentation Details All teams are required to create a comprehensive business plan for their simulated PC hardware firm. The major elements of the business plan include the following: Executive Summary Description of Business and Industry Market Opportunity Analysis Marketing Plan and Sales Tactics Manufacturing Plan (Outsourcing option) Human Resource Plan Financial Plan and Funding Request Tactical Time Chart

Additionally, each team must also conduct both a 1) Strategic/Tactical Comparison and a 1) Financial Comparison between their simulated PC firm and a real firm in the computer hardware industry, e.g., HP, Dell, Gateway, Apple, or IBM. The Strategic/Tactical Comparison will include the following elements: Product array Product positioning Segment focus Production and distribution Global reach Top management team (TMT) composition Core competencies The Financial Comparison must include firm level comparisons (revenue and revenue growth, net income and net income growth, and stock price and appreciation) as shown on page 10 and industry level comparisons (using the DuPont Analysis) as shown on page 11.

10

Trend Analysis - Dell Computers

Revenues and Revenue Growth
40,000 35,000 30,000 140.0%

Revenue Growth

120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0%

Revenue

25,000 20,000 15,000 10,000 5,000 0

1988 Year

Net Income and Net Income Growth

2,500 600.0%

2,000

Net Income Growt h

400.0%

Net Income

1,500

200.0%

1,000

0.0%

500

-200.0%

-400.0%

1
(500)

8 Year

10

11

12

13

14

15
-600.0%

Stock Price and Appreciation

$60.00 $50.00 450.0% 400.0% 350.0%

Growth
Stock Price
$40.00 $30.00 $20.00 $10.00 $0.00

250.0% 200.0% 150.0% 100.0% 50.0% 0.0% -50.0% -100.0%

10

11

12

13

14

Year

10

Annual Growth

Stock Price

300.0%

Annual Growth

Annual Growth

Computer Hardware Industry DuPont Analysis

Not "live" numbers.for illustration only!

Pre-Tax Margin (1-Tax Rate) 67.7% 65.8% 65.0% 63.9% 63.8% 67.4% 65.3% 8.1% 5.8% 0.808 1.201 8.9% 3.9% 8.7% 6.9% 0.8% 1.076 1.316 0.576 0.893 2.142 13.2% 5.9% 13.4% 10.8% 1.2% 12.1% 8.9% Net Margin Asset Turnover Return on Assets 9.6% 5.1% 5.0% 6.1% 1.7% 6.6% 5.5% Financial Leverage 16.034 3.261 4.366 7.692 5.051 3.057 7.281 Return on Equity 153.7% 16.8% 22.0% 47.2% 8.4% 20.1% 49.6%

2003

Apple Computer Dell Inc. Gateway Inc. Hewlett-Packard IBM

11

Industry Average - Weighted Industry Average

2001
13.2% 5.9% 13.4% 10.8% 1.2% 12.1% 8.9% 67.7% 65.8% 65.0% 63.9% 63.8% 67.4% 65.3% 8.9% 3.9% 8.7% 6.9% 0.8% 8.1% 5.8% 1.076 1.316 0.576 0.893 2.142 0.808 1.201 9.6% 5.1% 5.0% 6.1% 1.7% 6.6% 5.5% 16.034 3.261 4.366 7.692 5.051 3.057 7.281 153.7% 16.8% 22.0% 47.2% 8.4% 20.1% 49.6%

Apple Computer Dell Inc. Gateway Inc. Hewlett-Packard IBM

Industry Average - Weighted Industry Average

11

12

Attachment 2: Presentation Evaluation Criteria

MBA 406 Case Presentation Evaluation

Your Name:

_________________________________ Poor Average Excellent 6-----------7-----------8------------9-------------10

1. Case Overview (Steps 1-3)

* Did the team present the important information from the case? * Helped you to gain familiarity with the situation * Recognized symptoms from the case * Identified Goals of important parties * Presented important information from tables and or other sources 2. Analysis & Plan (Steps 4-6) 6-----------7-----------8------------9-------------10

* Analyzed important background information from book and outside sources * Chose and utilized useful theoretical models in the analysis * Made a convincing diagnosis of the problem * Developed a sound action plan (feasible, and practical) * Showed creativity and insight in the solution. 3. Presentation skills 6-----------7-----------8------------9-------------10

* Good eye contact, clear, loud speakers, prepared/polished * Good transition from speaker to speaker * Within allotted time, quality of slides (if used) * In general, how did they do in the presentation itself? ADDITIONAL COMMENTS FOR THE TEAM OR INDIVIDUALS:

12

13

Attachment 3: Written Case Analysis Evaluation

MBA 406 Written Case Analysis Evaluation Name: _________________________________

Poor Average Excellent 1. Gaining Familiarity (10%) 6-----------7-----------8------------9-------------10 * Identified critical factors in the case. * Identified critical contextual factors and the degree of uncertainty

2. Symptoms & Goals (20%) 6-----------7-----------8------------9-------------10 * Identify symptoms (things not expected or desired) * Critical statements from major parties * Clear understanding of goals of key parties * Financial trends (if applicable)

3. Analysis (30%) 6-----------7-----------8------------9-------------10 * Selected appropriate ideas/theories/models * Correctly applied ideas/theories/models * Dug deeply into information from the case to discover non-obvious relationships

4. Diagnosis & Action Planning (20%) 6-----------7-----------8------------9-------------10 * Used insights gained from analysis to highlight feasible action alternatives * Prioritized problems/predicaments/alternatives regarding timing, importance, etc. * Recommended solutions are appropriate and possible for the organization.

5. Creativity (10%) 6-----------7-----------8------------9-------------10 * Did your analysis and action plan leverage non-obvious facts/insights from the case? * Is the recommended course of action creative in itself or just more of the same? * How much out of the box thinking/analysis/research was used in the case analysis?

6. Overall Presentation and Writing (10%) -----------7-----------8------------9-------------10 * Was the report professionally prepared and well written

General case comments:

13