MGT 699 - Business PolicyMGT 699 - Business Policyand Strategyand Strategy

WALTER J. FERRIER, Ph.D.WALTER J. FERRIER, Ph.D.

Tel: 257-9326Tel: 257-9326

E-mail: walter.ferrier@uky.eduE-mail: walter.ferrier@uky.edu

Def.: Strategic Management -- The set of commitments, decisions, and actions required to achieve competitiveness.

Strategic Management in the Strategic Management in the NewsNews

Low price leader / Price cuttingLow price leader / Price cutting Differentiated player / Unique product or Differentiated player / Unique product or

marketing approachmarketing approach Market pioneer / Innovator, first-mover / New Market pioneer / Innovator, first-mover / New

products, etc.products, etc. M&A / Restructuring / TurnaroundM&A / Restructuring / Turnaround Alliances / Joint venturesAlliances / Joint ventures New international markets / off shore productionNew international markets / off shore production New plants / equipment / efficiency processesNew plants / equipment / efficiency processes

Course Perspective: Course Perspective: Strategy…A View from the Strategy…A View from the Top?Top?

Top Management

Functional Management• Marketing• Production• R&D• Logistics• Acct./Fin.

Value-addingActivities

Comments from the Fortune Comments from the Fortune 500500

Need to change culture … need big picture Need to change culture … need big picture viewview

Keeping track of competitors / customers is Keeping track of competitors / customers is everyone’s job everyone’s job

Cross-functional integrationCross-functional integration– StrategyStrategy– Problem-solvingProblem-solving– Decision-makingDecision-making

Good ideas get killed on their way bubbling Good ideas get killed on their way bubbling up … because they bubble straight up instead up … because they bubble straight up instead of circulating around first. of circulating around first.

Medium-Term Benefits at Big Medium-Term Benefits at Big Inc.Inc.

Top Management

Don’t let this be youyou.

?

Interested in Interested in Entrepreneurship?Entrepreneurship?

Small business management … Small business management … Start-ups … Start-ups … YOUYOU will be a top officer, strategist, will be a top officer, strategist,

decision-maker:decision-maker:– Pazzo’sPazzo’s vs. Joe Bologna’s vs. Domino’s vs. Joe Bologna’s vs. Domino’s– Lexington Brewing Co.Lexington Brewing Co. vs. Anheuser-Busch vs. Anheuser-Busch– John’s Running ShopJohn’s Running Shop vs. Footlocker vs. Footlocker– Pannell’s Swim ShopPannell’s Swim Shop vs. Dick’s Sporting vs. Dick’s Sporting

GoodsGoods

Managing ExpectationsManaging Expectations What you will get from this course:What you will get from this course:

– Useful frameworks/heuristicsUseful frameworks/heuristics– How to manage information and How to manage information and

knowledgeknowledge– Ability to integrate and analyzeAbility to integrate and analyze– Ability to anticipate and react Ability to anticipate and react – Ability to solve strategic problemsAbility to solve strategic problems– Ability to make decisionsAbility to make decisions– ““Big picture” perspectiveBig picture” perspective

Strategic Management: Course Strategic Management: Course ContentContent

What is it? What do CEOs do and worry What is it? What do CEOs do and worry about?about?

Analysis of industries and competitionAnalysis of industries and competition Business-level strategy: How to compete?Business-level strategy: How to compete? Competitive dynamics: Head-to head rivalryCompetitive dynamics: Head-to head rivalry Corporate-level strategy: Managing the Corporate-level strategy: Managing the

portfolioportfolio

Pedagogical ApproachPedagogical Approach

Real-world business cases & current Real-world business cases & current eventsevents

On-line readingsOn-line readings Oral case reportsOral case reports Field exercisesField exercises Web-based strategy simulationsWeb-based strategy simulations Class discussions/participation Class discussions/participation Videos, guest speakersVideos, guest speakers

Course MaterialsCourse Materials QuickMBA.com QuickMBA.com CAPSTONE™ simulation CAPSTONE™ simulation (...details soon)(...details soon) AFTERMARKET™ simulation AFTERMARKET™ simulation (...details later)(...details later) PRICE STRATEGY simulation PRICE STRATEGY simulation (...details later)(...details later) MERGER PLAN simulation (???) MERGER PLAN simulation (???) CITY CAR simulation (???)CITY CAR simulation (???) XANEDU.COM on-line course pack:XANEDU.COM on-line course pack:

IBP and Meat Industry XM Satellite Radio Webvan

Plus 5 HBR articles

Pennzoil Gillette Kraft/Genl Food

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1. Send E-mail by noon tomorrow to: 1. Send E-mail by noon tomorrow to: walter.ferrier@uky.eduwalter.ferrier@uky.edu

2. Check your e-mail tomorrow for ‘welcome’ 2. Check your e-mail tomorrow for ‘welcome’ message(s) message(s)

To send message to MGT699 listTo send message to MGT699 list: : Send to: Send to: MGT699@lsv.uky.eduMGT699@lsv.uky.edu

Remember: Messages sent to MGT699 list will be received by EVERYONE in class!

Assignments & GradingAssignments & Grading

ITEM WEIGHT

Capstone Simulation Score

Oral Case Report

Case Analysis Summary #1

Case Analysis Summary #2

Other simulations, etc.?Participation

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CAPSTONE SimulationCAPSTONE Simulation Web-based, interactive competition Web-based, interactive competition

simulationsimulation Teams play role of CEO, CFO, COO, etc.Teams play role of CEO, CFO, COO, etc. Teams compete against one another Teams compete against one another Coordinate multifunctional strategy, Coordinate multifunctional strategy,

decision-making, etc.decision-making, etc. Computer rankings, pre-game report, Computer rankings, pre-game report,

post-game reportpost-game report

Assignments for Next Week Assignments for Next Week

MONDAYMONDAY Subscribe to XANEDU.comSubscribe to XANEDU.com

– What is strategy? (Porter)What is strategy? (Porter)– Making strategy: Learn by doing (Christensen)Making strategy: Learn by doing (Christensen)– Minutes of Oct 19 ExComm MeetingMinutes of Oct 19 ExComm Meeting

– I will also send other links about Cuban Missile Crisis I will also send other links about Cuban Missile Crisis via e-mailvia e-mail

WEDNESDAYWEDNESDAY Case study Case study (XANEDU.com)(XANEDU.com)

– IBP and the U.S. Meat IndustryIBP and the U.S. Meat Industry