1 SMO 441 Strategy and Innovation
Winter 2018, Section B1
Time: Tuesdays and Thursdays, 12:30 – 13:50 Location: BUS 2-09
Instructor: Ke Cao Email: [email protected]
Office Hours: Immediately following class or by appointment
Course Description
This is a capstone course for senior undergraduates in the Business of Commerce program. It intends to be an integrative, culminating, and challenging coursework that helps you move forward. I am committed to making the class worthwhile for you. The various components in this class include, among others, classical and modern readings on strategic management and
innovation, a business strategy simulation game (CAPSIM Capstone), five cases, and two guest lectures. Those interconnected components will guide you through the strategic management tools and insights as well as the complexities and nuances of applying them. In particular, the course has a special focus on innovation and innovative ways of competing and creating value.
Ultimately, through this class, you are expected to gain a good understanding of key concepts and analytical frameworks in business and corporate strategy and innovation, obtain direct experience in formulating and executing strategy, and develop strategic and critical thinking skills for managing, learning, and leading in your future career.
Prerequisite courses include FIN 301, MARK 301, and SMO 201, 301, or 310.
Learning Goals
The organization of this course aims to contribute to the following seven learning goals for students in the Bachelor of Commerce program. I will give particular emphasis to Critical Thinking, Oral Communication, Teamwork, and Written Communication. You will earn your grade by demonstrating your capability in those four aspects.
1. Critical Thinking: Student will identify issues and explain why/how they are
problems; identify contexts relevant to stakeholders; formulate points of view; acknowledge objections and rival positions; identify and evaluate assumptions; evaluate evidence; and thoroughly discuss implications, conclusions, and consequences.
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2. Ethical Awareness: Student will identify personal core beliefs and their origins; identify underlying ethical concepts in a given scenario; comprehensively describe ethical issues in a complex context and accurately and comprehensively identify cross-relationships among the issues; and select and apply solutions to an ethical question and identify implications.
3. Global Awareness: Student will articulate the values of their own culture and others, and how social, political, economic, and intergroup relations influence business and trade with other regions; identify where they might need to adapt when doing business in a transnational setting; identify culturally sensitive adjustment options; and identify a cohesive set of steps or criteria they use to analyze the dynamics in an interpersonal or intergroup transnational setting.
4. Oral Communication: Student will have a clear, complete thesis statement aligned with the body of the talk; and display purposeful and effective arrangement of events, ideas and/or details, clear conclusions, confident body language, and good audience engagement.
5. Teamwork: Student will demonstrate clear, comprehensive, in-depth understanding of teamwork principles, and the ability to generate good solutions; they also will be able to apply principles to achieve goals and fully engage team members.
6. Quantitative Skills: Student will have the ability to convert and explain information presented in mathematical forms; to demonstrate accurate, full, and complete explanations and implications of information; and to make judgments and draw appropriate conclusions based on the quantitative analysis of data, while recognizing the limits of this analysis.
7. Written Communication: Student will have a clear, complete thesis statement aligned with the body of the paper; purposeful and effective arrangement of events, ideas and/or details;
clear conclusions; mature tone that is suitable for the audience; and writing that is consistently logical, with good relationships among ideas and arguments.
Course Materials
A student account for CAPSIM Capstone Business Strategy Simulation
(http://www.capsim.com/simulations/capstone/; code is C94283). You should pay 53.99 USD and can get your money back if you decide to quit this class in due course.
Five assigned cases (see Course Outline below). They can be directly purchased from Ivey Publishing (https://www.iveycases.com/) and will cost a total of 20.25 CAD for digital download.
All other readings can be accessed for free via e-Library and/or eClass. Readings noted as
“suggested” are optional. I will walk you through their key points in class.
There is no required textbook. If you have interests and time, I recommend that you read Contemporary Strategy Analysis (9th Edition) by Robert M. Grant and published by Wiley in 2016. Prior editions are also fine.
Contact me if you need more readings.
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Course Requirements
Type of Work
Components Weight Learning Goal(s)
Individual Class Participation and Contribution
15% Critical Thinking; Oral Communication
Midterm Exam 10% Critical Thinking
Peer Evaluation 5% Teamwork
Final Paper 30% Critical Thinking; Written
Communication
Team CAPSIM Strategic Plan 10% Critical Thinking; Teamwork CAPSIM Performance 10% Critical Thinking; Teamwork
CAPSIM Debriefing 10% Critical Thinking; Oral Communication;
Teamwork Group Research Project
Presentation
10% Critical Thinking; Oral Communication;
Teamwork
Class Participation and Contribution:
Prior to the class, I expect you to read the assigned readings and come with thoughts and
questions you would like to share with the class. I have uploaded some materials regarding how to read articles and cases on eClass. You are encouraged to read those and are welcome to share additional materials you find helpful. I will also give you guiding questions for each session beforehand. During the class, I would like to see you contribute to the discussion by providing relevant and meaningful comments or questions. Every student should expect to be called on during class to answer questions.
Midterm Exam:
The Midterm Exam is used to evaluate your understanding of class materials. It will be composed mainly of multiple-choice questions. It will last about 1 hour. I will provide a few example questions two weeks before the exam to help with your preparation.
Peer Evaluation:
You will be randomly assigned to teams, each composed of 4-6 students. You will work together for CAPSIM Capstone simulation and Group Research Project Presentation throughout this class.
40% of your grade will depend on team performance. You will complete a Peer Review Form at the end of this course to share with me your view of the proportional contribution of each member of your team, as well as your rationale. I will then compile the answers and assign a Peer Evaluation score for each of you.
Final Paper:
This is an opportunity for you to reflect on what you have learned from the readings, simulations, and case discussions, etc. It should be less than 5 single-spaced pages in length. The deadline is 8 PM, April 17, 2018. A separate document regarding the details of the final paper and the grading rubric will be posted on eClass.
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CAPSIM Strategic Plan:
Each team will submit a Strategic Plan by 10 AM, January 23, prior to the start of the official Tournament Rounds. This plan should be less than 4 single-spaced pages long. The plan is not a strictly formatted document, and it does not need to use the categories in the CAPSIM manual.
Instead, it is more of an argument with a general logic and details that cover key strategic questions. A separate document detailing the grading rubric will be posted on eClass.
CAPSIM Performance:
CAPSIM Capstone simulation provides a dynamic context for teams to experience the challenges of decision making towards a strategic goal. Our class will be organized into one or two
industries, typically of four or five companies per industry. Each week, your team’s company will execute a strategy by implementing decisions on R&D, production, marketing, and finance, etc., to complete CAPSIM “rounds.”
Tutorials: Full participation in CAPSIM is important for the team to function effectively.
Each student must individually practice the rehearsal tutorials and complete the quiz prior to the start of the Practice Rounds. If you do not complete the tutorials, my assumption will be that you are not ready to fully contribute to your team’s efforts. Consequently, you will forfeit 50% of your Peer Evaluation grade (2.5% of your final grade). After you read the manuals and complete the tutorials, the best way to address technical questions about CAPSIM is to call the CAPSIM toll-free support phone number 1.877.477.8787 or email [email protected].
Practice Rounds: There will be two rounds in the Practice Simulation in the second week of the course. Practice rounds will allow you and your team to become more familiar with the simulation software, and to sort out how you wish to operate as a team.
Official Rounds: There will be six official rounds in the second phase, Tournament Simulation. As the simulation progresses, the game will become more involved as more decision activities are added (e.g., Marketing, HRM, & TQM choices). In the weeks during which the simulation is running, decisions will be due twice a week.
Grading: To grade your team’s CAPSIM performance, I will use two reports: the CAPSIM “Star Summary Report” (50% of your performance grade) and the cumulative
“Balance Scorecard” (50% of your performance grade). These reports resemble common internal and external performance measures. At the end of the Tournament, your grade will be computed based on the two reports combined, as this offers the fairest assessment of the performance of the companies. The range of grades is based on how much better or worse each team has done relative to the cumulative average of each report.
CAPSIM Debriefing:
Following the last round of CAPSIM, each team will present its actual results. These will be presented to the members of class as if they were members of your company’s board or outside shareholders. You will want to design your presentation so that we are convinced to remain shareholders. In other words, you will need to demonstrate your mastery of strategic frameworks, your understanding of the competitive dynamics of your industry, and your ability to learn from your performance and to dynamically respond to your competition. The grading rubric will be posted on eClass.
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Group Research Project Presentation:
Each group will identify a firm-focused business event that occurred in 2017 that you could relate to what you learn in class, and then share the business case and your recommended strategies in the form of a 15-minute presentation, followed by a brief Q&A with the class. The presentation could be about cases related to any firm and covered in any public media outlet, such as the Financial Times, the Globe and Mail, and the Edmonton Journal. A separate document regarding the details of the presentations and the grading rubric will be posted on eClass.
Course Policies
I expect you to follow common classroom etiquette so we can have a collegial and engaging learning environment. I will take measures to enforce this if I have to. For example, I might substantially deduct the participation and contribution score to respond to chronic absences or lateness for class.
Grading: I will follow the general University of Alberta guidelines and consult the SMO department in assigning grades. I will first calculate the numeric marks and then transform them into letter grades. I will consider both absolute achievement and relative performance in a class.
Per the 2017-2018 University Calendar, I am obliged to let you know the following:
"Policy about course outlines can be found in Course Requirements, Evaluation Procedures and Grading of the University Calendar."
"The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in
suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence.
Academic dishonesty is a serious offence and can result in suspension or expulsion from the University."
Acknowledgements
I thank fellow doctoral student Jean-François Soublière and Professor Chris Steele for
generously sharing their experience and materials in teaching this course. I thank Professors Joel Gehman, Dev Jennings, and Marvin Washington for their guidance on teaching.
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Course Outline
Note: This syllabus was revised as of December 20, 2017. The schedule included in this syllabus is likely to change throughout the term. I will announce scheduling changes in class and on eClass.
Date Topic Preparations Assignments & Due
Time
Jan. 09 Introduction Syllabus and CAPSIM Capstone Manual
Part I: Foundations of Strategic Management
Jan. 11 What is Strategy? I Porter, M. E. 1996. What is strategy? Harvard Business Review, 74(6): 61-78.
CAPSIM Tutorial, by 11 AM
Jan. 16 What is Strategy? II Hambrick, D. C. & Fredrickson, J. W. 2001. Are you sure you have a strategy? Academy of Management Executive, 15(4): 48-59.
Suggested: Collis, D. J. & Rukstad, M. G. 2008. Can you say what your strategy is? Harvard Business Review, 86(4): 82-89.
Practice Round 1, by 11 AM
Jan. 18 Industry & Competitive Analysis I
Porter, M. E. 2008. The five competitive forces that shape strategy.
Harvard Business Review, 86(1): 78-93.
Practice Round 2, by 11 AM
Jan. 23 Industry & Competitive Analysis II
Kim, W. C. & Mauborgne, R. 2004. Blue ocean strategy. Harvard Business Review, 82(10): 76-84.
Strategic Plan, by 10 AM Round 1, by 11 AM Jan. 25 Resource and Capability I Barney, J. B. 1995. Looking inside for competitive advantage.
Academy of Management Executive, 9(4): 49-61.
Round 2, by 11 AM Jan. 30 Resource and Capability II Ulrich, D. & Smallwood, N. 2004. Capitalizing on capabilities.
Harvard Business Review, 82(6): 119-127.
Round 3, by 11 AM
Feb. 01 Case Tim Hortons (Ivey 9B14M114) Round 4, by 11 AM
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Feb. 06 Strategic Implementation I Kaplan, R. S. & Norton, D. P. 2008. Mastering the management system. Harvard Business Review, 86(1): 62-77.
Suggested: Martin, R. L. 2015. Strategy is about both resources and positioning. Harvard Business Review blog.
Round 5, by 11 AM
Part II: Innovation and Entrepreneurship
Feb. 08 Strategic Implementation II
Eisenhardt, K. M. & Brown S. L .1998. Competing on the edge:
Strategy as structured chaos. Long Range Planning, 31(5): 786- 789.
Suggested: Edmondson, A. 2011. Strategies from learning from failure, Harvard Business Review, 89(4): 48-55.
Round 6, by 11 AM
Feb. 13 Class Presentation CAPSIM Debriefing
Feb. 15 Disruptive Innovation Drucker, P. F. 1998. The discipline of innovation. Harvard Business Review, 76(6): 149-157.
Suggested: Christensen, C. M. & Overdorf, M. 2000. Meeting the challenge of disruptive change. Harvard Business Review, 78(2):
66-76.
Feb. 20 Reading Week; No Class
Feb. 22 Reading Week; No Class
Feb. 27 Midterm Exam
Mar. 01 Ecosystem and Value Chain
Adner, R. 2006. Match your innovation strategy to your innovation system. Harvard Business Review, 84(4): 98-107.
Suggested: Hansen, M. T. & Birkinshaw, J. 2007. The innovation value chain. Harvard Business Review, 85(6): 121-132.
Mar. 06 Guest Lecture David Bridges, COO, CompuVision
Mar. 08 Age of Big Data Martin, R. L. & Golsby-Smith, T. 2017. Management is much more than a science. Harvard Business Review, 95(5): 129-135.
Suggested: Davenport, T. H. 2006. Competing on analytics.
Harvard Business Review, 84(1): 98-107.
Part III: Selected Topics in Strategy and Innovation
8 Mar. 13 Sustainability and
Innovation
Nidumolu, R., Prahalad, C. K., & Rangaswami, M. R. 2009. Why sustainability is now the key driver of innovation. Harvard Business Review, 87(9): 57-64.
Suggested: Bansal, P., Chapardar, H., & Gehman, J. 2016.
Tradeoffs in sustainability-oriented innovations. MIT Sloan Management Review blog.
Mar. 15 Case Suncor and the Future of Oil Sands (Ivey 716065)
Mar. 20 Strategy and Society Porter, M. E. & Kramer, M. R. 2006. Strategy and society. Harvard Business Review, 84(12): 78-92.
Suggested: Smith, J. 2003. The shareholders vs. stakeholders debate. MIT Sloan Management Review, 44(4): 85-88.
Mar. 22 Case New Belgium Brewing Company and B Corporation Certification (Ivey 9B17M028)
Mar. 27 International Strategy Greenwald, B. & Kahn, J. 2005. All strategy is local. Harvard
Business Review, 83(9): 94-104.
Suggested: Gupta, A. K. & Govindarajan, V. 2001. Converting global presence into global competitive advantage. Academy of Management Executive, 15(2): 45-56.
Mar. 29 Case Monsanto Company - Doing Business in India (Ivey 9B12M091) Apr. 03 Guest Lecture Alicja Brown, Investment Advisor & Partner, Remy Brown
Investment Group, CIBC Wood Gundy
Apr. 05 Case Newfoundland Centre for the Arts (Ivey 9B05M038)
Apr. 10 Group Research Project Presentations
Apr. 12 Group Research Project Presentations
Peer Review Form due 8
PM, April 13; final paper due 8 PM, April 17.
