MAN 4720: Strategic Management The Capstone Course

1. MAN 4720: Strategic Management (The Capstone Course) Dr. Marshall Schminke Spring, 2011

2. 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

3. 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

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

5. Capstone across the region: Welcome to those of you at the regional campuses:

6. 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

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

8. 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

9. 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

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

11. A note on the books: Michael Porter�s Competitive Strategy Michael Porter�s Competitive Advantage

12. 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�

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

14. 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)

15. 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)

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

17. 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

18. 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) 

19. 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)

20. They are the foundation for important research across a variety of areas: Distribution of environmental costs and benefits, additional distortions, and the Porter Hypothesis (Land Economics, 2008) Implementation of Michael Porter's strategic corporate social responsibility model (Journal of Global Business Issues, 2008) A service-based view of Porter's model of competitive advantage (International Journal of Management, 2008) Porter's business strategies in Japan (Business Strategy Series, 2008) Applying Michael Porter's extended rivalry model to the robotics industry (The Industrial Robot, 2008) Environmental regulation and productivity: Testing the Porter hypothesis (Journal of Productivity Analysis, 2008) Porter's model of generic competitive strategies (Business Economics, 2008)

21. 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)

22. 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.

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

24. 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

25. Topic: The Strategic Process 

26. Conversation: What is Strategy?What is Strategic?

27. Conversation: What is Strategy?What is Strategic?

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

29. Hannibal

30. Some final thoughts: 

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

32. Colleges and universities Are amazing things They began with Plato�s Academy

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

34. Colleges and universities And eventually to the School of Athens

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

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

37. Colleges and universities These provide the foundations for our concept of universities today

38. 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

39. 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?

40. 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�

41. 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?

42. 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 You have one semester left to make that happen. I�m here to help. (Your lab instructors are here to help.) If your university experience hasn�t yet delivered to you those things you wondered about, thought about, two/four years ago, now�s the time. At the end of this semester, you step into the real world, for real. Screw-ups here are (nearly) costless. There, they are very expensive. Who in their right mind would not want to press as hard as they possibly could, get as much as they possibly could, from their final months in one of these amazing university settings. It�s about to get real-world on you. That�s a tough place. Nobody�s going to say to you any longer, �Ooooh. What a great job. What a wonderful effort. What a wonderful child.� That is, unless you�ve earned it. You are one baby step away from that. This is your last chance to improve, to stretch, to find out what you are really capable of, when the risk of making a mistake is very very low. In May, the price of poker goes way, way, up. Use us, and use us wisely. That�s what we�re here for. You have one semester left to make that happen. I�m here to help. (Your lab instructors are here to help.) If your university experience hasn�t yet delivered to you those things you wondered about, thought about, two/four years ago, now�s the time. At the end of this semester, you step into the real world, for real. Screw-ups here are (nearly) costless. There, they are very expensive. Who in their right mind would not want to press as hard as they possibly could, get as much as they possibly could, from their final months in one of these amazing university settings. It�s about to get real-world on you. That�s a tough place. Nobody�s going to say to you any longer, �Ooooh. What a great job. What a wonderful effort. What a wonderful child.� That is, unless you�ve earned it. You are one baby step away from that. This is your last chance to improve, to stretch, to find out what you are really capable of, when the risk of making a mistake is very very low. In May, the price of poker goes way, way, up. Use us, and use us wisely. That�s what we�re here for.

43. Next time: More on what we�re doing here Mission and strategy You have one semester left to make that happen. I�m here to help. (Your lab instructors are here to help.) If your university experience hasn�t yet delivered to you those things you wondered about, thought about, two/four years ago, now�s the time. At the end of this semester, you step into the real world, for real. Screw-ups here are (nearly) costless. There, they are very expensive. Who in their right mind would not want to press as hard as they possibly could, get as much as they possibly could, from their final months in one of these amazing university settings. It�s about to get real-world on you. That�s a tough place. Nobody�s going to say to you any longer, �Ooooh. What a great job. What a wonderful effort. What a wonderful child.� That is, unless you�ve earned it. You are one baby step away from that. This is your last chance to improve, to stretch, to find out what you are really capable of, when the risk of making a mistake is very very low. In May, the price of poker goes way, way, up. Use us, and use us wisely. That�s what we�re here for. You have one semester left to make that happen. I�m here to help. (Your lab instructors are here to help.) If your university experience hasn�t yet delivered to you those things you wondered about, thought about, two/four years ago, now�s the time. At the end of this semester, you step into the real world, for real. Screw-ups here are (nearly) costless. There, they are very expensive. Who in their right mind would not want to press as hard as they possibly could, get as much as they possibly could, from their final months in one of these amazing university settings. It�s about to get real-world on you. That�s a tough place. Nobody�s going to say to you any longer, �Ooooh. What a great job. What a wonderful effort. What a wonderful child.� That is, unless you�ve earned it. You are one baby step away from that. This is your last chance to improve, to stretch, to find out what you are really capable of, when the risk of making a mistake is very very low. In May, the price of poker goes way, way, up. Use us, and use us wisely. That�s what we�re here for.

44. See you next week� Knock �em dead in your labs (Your instructors can�t wait�)

45. See you next week� Knock �em dead in your labs (Your instructors can�t wait�)