MAN 4720: Strategic Management (The Capstone Course)

MAN 4720: Strategic Management (The Capstone Course) Dr. Marshall Schminke Spring, 2011 These slides are intended to be a supplement to your class notes, not a replacement for them. For specific references, etc., see me.

Capstone Week 1: • Lecture • Introduction to the course & strategic process • Introduction to the Capstone team • A brief tour of the syllabus • Q: Why are we here? • Labs • Introduction to the lab groups • Begin to form teams • Better understanding of coming attractions

NEXT week: • No Lecture (MLK) • Yes, labs (except Monday labs) • Next time: Mission and strategy • Labs • Finalize team formation • Q&A regarding projects • Hands-on exercises related to strategy • How to find information

Introduction to the team: • Clearly, the best team ever assembled for the Capstone course • Maybe I’m a little biased? • Brief introductions

Capstone across the region: • Welcome to those of you at the regional campuses: • Cocoa • Daytona • Metro West • Osceola • Palm Bay • Sanford/Lake Mary • South Lake

The syllabus: • Available at http://www.bus.ucf.edu/capstone/spring • Click on syllabus • For now, a quick tour • My faculty website: • http://web.bus.ucf.edu/faculty/mschminke

All good courses seek to answer a questionIn this case, the question is this:

Why are some companies sustainably better than others? • According to what you’ve learned in some other classes, that shouldn’t happen • We can buy their talent • We can study their processes • We can hire their experts • But it does

Why are some companies sustainably better than others? • It’s not just having a better product • History is full of better products that died • And it’s not just luck • Luck isn’t sustainable, long term • Then what is it? How can this happen? • That’s why we’re here

The best foundational thinking on answering that question: • Michael Porter, Harvard Business School • That brings us to his foundational books

A note on the books: • Michael Porter’s Competitive Strategy • Michael Porter’s Competitive Advantage

A note on the books: • Michael Porter’s Competitive Strategy • Michael Porter’s Competitive Advantage • Strategic analysis based on: • Industry analysis (the five forces) • Firm analysis (the value chain) • They are classics, but don’t be fooled by the dates…

A note on the books: • They provide the foundation for most of the best current thinking on strategic issues today

They are the foundation of HBS’s current strategy offerings: • What is Strategy? (HBR digital 2008) • How Competitive Forces Shape Strategy (HBR digital 2008) • From Competitive Advantage to Corporate Strategy (HBR digital 2008) • The Five Competitive Forces that Shape Strategy (HBR digital 2008)

And they provide the foundation for nearly all strategy texts: • Strategic Management: Competitiveness & Globalization by Hitt, Ireland,& Hoskisson (2010) • Crafting & Executing Strategy by Thompson, Gamble, & Strickland, & Gamble (2009) • Strategic Management: Creating Competitive Advantages by Dess, Lumpkin, & Eisner (2010) • Strategic Management: Formulation, Implementation, and Control by Pearce & Robinson (2010) • Even Strategic Management and Competitive Advantage by Barney and Hesterly (2009)

A note on the books: • Their impact goes beyond providing the foundation for most current thinking on strategic, business, and economic issues

They are the foundation for Porter’s current & recent work: • Porter (forthcoming) Strategic Corporate Social Responsibility • Porter (2008) On Competition (Updated and Expanded Edition) • Porter & Teisberg (2006) Redefining Health Care: Creating Value-Based Competition on Results • Porter & Kramer (2006) Strategy and Society: The Link between Competitive Advantage & CSR • Plus, Porter’s work on competitive advantage of nations, urban development, & environment

They are the foundation for important research across a variety of areas: • A Study of the Role Played by Manufacturing Strategic Objectives and Capabilities in Understanding the Relationship between Porter's Generic Strategies and Business Performance (British Journal of Management, 2010) • Porter’s Generic Strategies and Environmental Scanning Techniques (The Business Review, Cambridge, 2010) • Analyzing Porter's Ideas: Horizontal Differentiation and Product Innovation (IUP Journal of Knowledge Management, 2010) • Porter's generic strategies as applied toward e-tailers (The Journal of Product and Brand Management, 2010)

They are the foundation for important research across a variety of areas: • Strategy as "Inferior" Choice: A Re-interpretation of Porter's "What is Strategy?“ (Journal of Management Research, 2010) • Does the Porter Hypothesis Explain Expected Future Financial Performance? The Effect of Clean Water Regulation on Chemical Manufacturing Firms (Environmental and Resource Economics, 2010) • Competitive Advantage of German Renewable Energy Firms in Russia – An Empirical Study Based on Porter’s Diamond (Journal for EE Management Studies, 2010) • The Effect of Clean Water Regulation on Profitability: Testing the Porter Hypothesis (Land Economics, 2010)

Realistically? • They’re not comic books • My friends at other top schools said… • They can be dry in places. (Oh, yes.) • But the load works out to be very manageable, in terms of pages per week • (And about $65,000 savings)

Realistically? • They are books and ideas that matter • They are books and ideas with practical value • We’ll start with the basics • And there’s plenty of room to grow, once you have these down • My belief: You’re grownups. You can handle grownup books.

Back to the syllabus: • Look it over • Q&A next time and in your labs • The major events…

The major events: • Two exams plus a final • Quizzes in labs • The 10-K Integration project (individual) • Capstone “Off the Books” • Case 1: Industry analysis • Case 2: Strategic analysis (of a firm) • The Great Capstone Case Competition

Topic: The Strategic Process

Conversation: What is Strategy?What is Strategic?

Topic: Who remembers Hannibal? (Second Punic War?)

Hannibal

Some final thoughts:

You • Four years ago (or so), you were seniors in high school • You decided to attend college

Colleges and universities • Are amazing things • They began with Plato’s Academy (Around 387 B.C.)

Colleges and universities • They evolved through that to his full symposia (nicer surroundings)

Colleges and universities • And eventually to the School of Athens

Colleges and universities • By around 800s, formal universities were being formed in places like Constantinople and Salerno

Colleges and universities • By around 1200, they existed in Paris, Oxford, Cambridge, & Salamanca

Colleges and universities • These provide the foundations for our concept of universities today But it was a long road; It took more than 400 additional years for Harvard to even enter the picture!

Colleges and universities • Today, we refer to them collectively as institutions of higher education • That’s meaningful • It drives what we do here • And it’s why you came here

Back to you • That brings us back to you. • Four years ago, this was all a pretty fuzzy concept to you. You had… • ideas about what you would learn • goals about what you would become • Smarter? • New skills? • More well-rounded? • A different kind of thinker?

Back to you • So here you sit • Final semester • Time for some questions: • Has it been what you thought? • Has it been what you’d hoped? • And maybe most importantly…

Back to you • Are there things you wanted out of it that haven’t yet happened? • Have I been pushed? • Have I pushed myself? • Have I discovered yet what I can really do?

Back to you • Here’s the thing: Time’s almost up… • This is the last chance you have to see what you can do • We’re here to help • Let’s get to it

Next time: • More on what we’re doing here • Mission and strategy

See you next week… • Knock ‘em dead in your labs • (Your instructors can’t wait…)

MAN 4720: Strategic Management (The Capstone Course)