ALBERTA SCHOOL OF BUSINESS SMO 686 WINTER 2018, SECTION 850 WEST COAST STUDY TOUR
Class Times Session 1: Saturday, Dec. 9, 1-5pm Session 2: Saturday, Jan. 13, 1-5pm
Study Tour: Thursday, Feb. 15 to Saturday, Feb. 24 Class Location 3-05 Business Building
Professor Joel Gehman, 3-30G Business Building Contact Details [email protected]
Office Hours By appointment
COURSE OBJECTIVES
The theme of this course is technology, innovation, and entrepreneurship in action. While I will introduce you to a few concepts related to the theme, the course is primarily experiential. It is an embodied learning experience. How much you learn really will depend on the kind of openness and alertness you bring with you. Metaphorically, you can think of the course as a laboratory experiment in which you are the experimenter and the companies we visit are the experiments you are observing. What should you observe? Well, that depends on what you are trying to learn. There are at least three categories of observations you might make.
• First, you might think of yourself as an anthropologist or sociologist visiting a strange and foreign world. From this perspective, you might notice things that are different or surprising to you, things that seem out of place to you, but perfectly normal to the people we are visiting. What does it mean to do business in San Francisco or Seattle and how is that different than your experiences, whether in Alberta or Canada or elsewhere? Why is technology, innovation, and entrepreneurship so concentrated in these places? Why are these places so successful? Can other regions find similar success? Should they? How could they?
• Second, you might approach this as an MBA student with a head full of concepts, vocabulary, and ideas. Here, your attention might be drawn to the “action” part of the course theme. What is it exactly that people and companies are doing? Are the companies we visit and the people we meet doing what you have learned in your classes, or are they doing something else? What kinds of concepts seem to be working? What kinds of concepts are not working? What would happen if you tried out some of these same practices at work? Can you simply copy what you have learned? What gaps in your knowledge does the trip expose? What do you want to learn next?
• Finally, you might think about your own career path. Is technology, innovation, and entrepreneurship an area where you want to spend your career? For you to be truly successful in this area what would you need to change? What might you need to stop doing? What would you need to start doing? Did you observe things that challenge your assumptions or take you out of your comfort zone? Are you prepared to risk yourself in such an endeavor?
These questions are not exhaustive, but merely illustrative of the kinds of stances I hope you will take throughout the course.
REQUIRED MATERIALS
There are two required case studies:
• Blue River Technology (A)
https://www.iveycases.com/ProductView.aspx?id=65099
• A Day in the Life of a Venture Capitalist
https://www.iveycases.com/ProductView.aspx?id=76365
These cases may be purchased from Ivey Publishing at the cost of CAD $5.25 each. Note:
Because of copyright restrictions, you must purchase your own copies (i.e., you may not share with a classmate). Any failure to obtain your own licensed copy of these cases is a violation of the University’s academic integrity policies.
Other required readings are available as PDFs or URLs via the uLearn website.
OPTIONAL MATERIALS
Although no textbook is assigned, you may find the following book to be a valuable addition to your professional development library:
• How Breakthroughs Happen, by Andrew Hargadon (UC Davis Professor)
If you are thinking of a career in technology, innovation and/or entrepreneurship, you may want to make the following website part of your daily reading:
• Tech Crunch: https://techcrunch.com/
You also may be interested in these books related to companies we will visit:
• Startupland, by Mikkel Svane (Founder & CEO of Zendesk)
• Hit Refresh, by Satya Nadella (current CEO of Microsoft)
Finally, I have loaded a small selection of “extra” readings to uLearn. Although you are not required to read these articles, I strongly suggest you draw on concepts and ideas such as these when preparing your strategic review.
GRADING
Course Engagement (individual) 30%
Strategic Review (group) 40%
Strategic Critiques (individual) 15%
Post Trip Reflection (individual) 15%
Total 100%
Course Engagement
The course will be run as a seminar. You are expected to read and prepare before each class and to be prepared to answer questions in class. uLearn will be used to notify you of important information and changes (if any), so please check-in regularly. Your individual engagement in the course, both before and during the study tour, count for 30% of your course grade. There are two components to this grade.
Class Performance
Discussion and debate are ubiquitous features of contemporary organizations. Likewise,
classroom discussions are an opportunity for you to discover what you think and feel, in part, by seeing what you and others say. Participation also provides you with a platform for improving your communication skills. Accordingly, everyone’s participation is essential, especially when perspectives differ. To foster this kind of learning environment, I am counting on each of you to come to class prepared. If you cannot attend, please notify me in advance via email. It is your responsibility to catch up on any material you missed. Your class participation will act as a kind of multiplier. Below average class performance will bring your overall course engagement mark down, above average class performance will bring your mark up.
Study Tour Performance
Your performance during the study tour reflects not only on you individually, but also on me, your classmates, the Alberta School of Business, and the University of Alberta. You may be called upon at random during the visit to share your thoughts or ask a question during any company visit. This requires that you be prepared to do so. I expect all members of the class to have read all nine of the written reports and company articles (see below) prior to arrival in San Francisco. Moreover, in addition to using the same rubric noted above, I will use a “three strikes” rule to deal with any inappropriate behavior related to the study tour. Examples of inappropriate behavior include, but are not limited to: missing any deadlines (e.g., payments, travel documents); arriving late by five minutes or more for any activity on the course; wearing inappropriate attire (unless otherwise instructed, business casual dress is required for all group activities during the trip); or any action which could potentially complicate group arrangements, damage relationships, or reflect poorly on the University of Alberta. Actions such as these will impact your grade as follows: strike one, you will receive a warning; strike two, your overall course grade will be reduced by a full letter (e.g., a B will become a C); and strike three, you will receive a failing grade in the course. The “three strikes” rule is for minor offenses. In the case of any action which significantly embarrasses the University of Alberta, I reserve the right to give you a failing grade and/or to request that you immediately leave the trip without any
reimbursement. These grade changes are non-negotiable.
Strategic Review
This assignment has two goals: First, it is designed to prepare you and your classmates for engagement with managers and executives at the companies we will visit. Second, it is intended to develop your capacity to analyze and critique a company’s business strategy. For this assignment, you will self-select into groups. It is your responsibility to find a group during the first class.
Most groups will include exactly three (3) members. Depending on the number of company visits and enrolled students, some teams of two (2) or four (4) may be necessary. Teams will be assigned to prepare strategic reviews related to the following study tour activities:
1. Amazon, Seattle, WA 2. Boeing, Everett, WA
3. Cliff Lede Vineyards, Yountville, CA 4. Dropbox, San Francisco, CA
5. Frog’s Leap Winery, Rutherford, CA 6. Microsoft, Redmond, WA
7. Parisoma, San Francisco, CA 8. Starbucks, Seatttle, WA 9. Zendesk, San Francisco, CA
This project requires you to develop a strategic recommendation for your chosen company in light of its current business environment. Specifically, I want your group to assume the perspective of a management consulting firm presenting a formal recommendation to your company’s executive management team. The key to a successful presentation is identifying a problem or an opportunity facing your client, and then constructing a recommendation for how to solve the problem. Your proposal should be organized around a strategy or innovation framework of your choosing (e.g., disruptive innovation, strategy diamond). Additionally, your recommendation should explicitly consider the company’s technological and cultural context. As described below, you will deliver your strategic review in two forms: an in-class presentation and a written report.
To effectively complete this assignment, you will need to conduct research on your assigned company as well as its industry. I expect your analysis to be driven by data and evidence.
Relevant sources might include: the company’s website(s), marketing collateral, and press releases; annual reports and analyst reports; and industry information and other databases. You may find this library guide helpful: https://guides.library.ualberta.ca/business.
Presentation
On January 13, your group will present its analysis and recommendations to the class. Each presentation will be 15 minutes in length and should highlight the company’s history, current strategy, key competitors, notable opportunities or threats, as well as your recommendations.
Every member of the group DOES NOT need to present; every member of your group will receive the same presentation grade regardless of individual contributions to the presentation itself. You also will receive comments from your classmates on your presentation. Clarity and creativity are strongly encouraged in the presentation. I expect that at this time of your
University of Alberta career, you know how to give a professional presentation, so this may be a
that neglect content in favor of form are not likely to score well. Following your presentation, 10 minutes of time will be set aside for questions from your classmates. Your presentation must be submitted by 1pm on January 13, 2018, and will be distributed to both me and your classmates.
Written Report
You also will prepare a written report (maximum 10 pages) detailing your analysis, insights, and recommendations. The written analysis itself should not exceed ten (10) typewritten pages, single-spaced, 1-inch margins, 12-point Times New Roman font. Number all pages. Within these broad formatting guidelines, you are free to use any creative formatting that will help you increase the comprehensibility and persuasive power of your recommendation. However, I will only read the first 10 pages of text, so please stay within the page limit, including any
appendices. Appendices which are not directly referenced in the text will not be read. The appendix is not a catch-all for anything that might be relevant, but is to be used carefully to support your points. Following your presentation, each team will receive approximately six (6) one-page critiques of its presentation from fellow classmates. Accordingly, your final written reports should incorporate any relevant critiques received from your classmates. Any time you utilize ideas from a classmate’s critique, this should be acknowledged with a footnote. Your final report is due by 5pm on February 9, 2018, and will be distributed to both me and your
classmates.
Company/Industry Article
Finally, you will find one exemplary article about your assigned company and post it for your classmates to read in advance of the trip. It should be a recent article, deal with key business issues, and provide your classmates with a good primer on topic bound to be top of mind to the company’s managers and executives. If for some reason there is no recent and relevant press coverage of your company, you should find an article that deals with strategic issues facing the industry, especially firms comparable to your assigned company. Your article is due the same time as your presentation (1pm on January 13, 2018).
Grading Approach
Each team is free to structure itself as it wishes. Each of you will complete a self-evaluation as well as an evaluation of your group members. The peer evaluation form is in the Appendix.
All team members must complete the form and submit it to me via e-mail within 24 hours of their presentation. Your grade will reflect your group’s overall performance, your individual contributions, and feedback from your classmates. Collectively, the presentation, written report, and companion article about your company count for 40% of your course grade.
Strategic Critiques
During the presentations, you are expected to actively listen to your classmates and to ask them questions aimed at furthering their thinking and your understanding. Additionally, following the class session, you will be responsible for writing a formal critique of two (2) of the strategic reviews. Each critique should be one page long and follow the same formatting requirements as the strategic review. Writing the critique will involve thinking about the strategic
recommendation advanced in each class presentation and providing a streamlined summary of its strengths and weaknesses. The critique should culminate in your articulation of a specific
opinion or recommendation about how to address the challenge discussed by the group. In some cases, this may necessitate conducting your own research to find evidence to back up your critique. This is an individual assignment and counts for 15% of your course grade. This assignment is due by 5pm on January 20, 2018.
• If you are in Group 1, you will write a critique of groups 4 and 5.
• If you are in Group 2, you will write a critique of groups 5 and 6.
• If you are in Group 3, you will write a critique of groups 6 and 7.
• If you are in Group 4, you will write a critique of groups 7 and 8.
• If you are in Group 5, you will write a critique of groups 8 and 9.
• If you are in Group 6, you will write a critique of groups 9 and 1.
• If you are in Group 7, you will write a critique of groups 1 and 2.
• If you are in Group 8, you will write a critique of groups 2 and 3.
• If you are in Group 9, you will write a critique of groups 3 and 4.
Post Trip Reflection
Following our return to Edmonton, you will write a post trip reflection. First, choose one of the companies we visited, or another experience that stands out to you from the trip. However, you may not choose the company you wrote about for your strategic review assignment, nor may you choose either of the companies you critiqued. For instance, if you are in Group 1, you may not choose Amazon, Dropbox. or Frog’s Leap Vineyard. Your reflection should be approximately 1000 to 1200 words long and follow the same formatting conventions as the strategic review. In your reflection, I want to you answer the following prompt: One thing Alberta companies could learn from X is… In this case, X refers to the name of the company you select. Similarly, the phrase “Alberta companies could learn from” is a bit of a placeholder. You might focus on a learning that you think would benefit a specific Alberta company or organization you are
familiar with, or you might think about the implications of your insight for a particular industry, or perhaps you see some kind of governmental policy or implication that flows out of your learning. The key point is that I want your post trip reflection to deal with the intersection between two things: 1) a specific something you learned or found memorable from the trip, and 2) a creative impulse about how that ah-ha might be usefully translated from the West Coast to Alberta. To do well on this assignment, you must be clear and explicit about both elements. This is an individual assignment and counts for 15% of your course grade. This assignment is due by 5pm on March 5, 2018.
COURSE POLICIES
1. Policy about course outlines can be found in Section 23.4(2) of the University Calendar.
2. My goal in this course is to create a supportive environment for learning based on open, constructive debate. This requires all of us to be engaged with the material and with each other in a professional manner, with courtesy and respect for each other’s individuality.
Discrimination, malicious criticism, and disruption of class are examples of conduct that are not acceptable.
3. 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 Behavior and avoid any behavior 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. I will immediately forward any suspicious cases to the Associate Dean of the Master of Accounting Program.
Plagiarism will lead to a failing grade (0%) on the assignment. Plagiarism can lead to a student failing the course.
4. Audio or video recording of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved accommodation plan. Recorded material is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the instructor.
5. If you have a disability that may require some modification of seating, testing or other class requirements, please notify me so that appropriate arrangements can be made.
6. If you have any personal concerns, the following support numbers may be helpful resources:
Support Network, Crisis Support: 780.482.4357
Community Urgent Services and Stabilization: 780.342.7777
7. Any assignment that is late will have 10% percent of the grade deducted for each day that assignment is late up to a maximum of seven days. No assignments will be accepted more than seven days after the deadline.
ACKNOWLEDGMENTS
I want to thank Vern Glaser (University of Alberta) for sharing his European Study Tour Syllabus with me. Several of the assignments in this course have been inspired by and adapted from his course.
Class Session #1 December 9, 1-5pm
Introductions to each other and the course
Preparation for Class #1
• Case Study: Blue River Technology (A)
• Disruptive Technologies, Bower & Christensen, HBR 1995
• Time Pacing, Eisenhardt & Brown, HBR 1998
• Robots to Revolutionize Farming, Ease Labor Woes
https://www.usatoday.com/story/tech/2013/07/15/robots-farming/2517479/
Be Prepared to Discuss these Questions:
• Initially, the company is considering whether to enter the lettuce thinning market with either a service model or an equipment model. Describe the key components of each business model (revenue model, pricing model, go-to-market model, customer ROI, marketplace customs, operational requirements, capital requirements, etc). What are their relative advantages and disadvantages? What do you recommend?
• Do you think the company should go for the organic vegetable market next, before
attempting row crops (Jorge’s bowling pin strategy)? What are the opportunities and risks in going after the row crops market? If the company were to pursue the row crops market next, should it pursue a service or an equipment model?
• What are the important considerations in selecting an investor for this project? Are you concerned over the differences that have emerged between Jorge and Khosla Ventures with regard to strategy, staffing, and valuation? How should these be resolved? Do you want to pursue the available alternative?
Class Session #2 January 13, 1-5pm
Presentation of strategic reviews.
Preparation for Class #2
• Strategy as Simple Rules, Eisenhardt & Sull, 2001
• Building an Innovation Factory, Hargadon & Sutton, 2000
• How Tech Giants Deliver Outsized Returns, McKinsey, 2017
• Silicon Valley Index, Bloomberg Businessweek, 2017
Study Tour Schedule as of December 7, 2017 (subject to change)
Thursday, February 15
• Fly to San Francisco Friday, February 16
• Morning: Parisoma - http://www.parisoma.com/
• Afternoon: Stanford University - http://www.stanford.edu Saturday, February 17
• Morning: Cliff Lede Vineyard - http://www.cliffledevineyards.com/
• Afternoon: Frog’s Leap Winery - http://www.frogsleap.com/
Sunday, February 18
• Morning, Lunch, Afternoon: Computer History Museum - http://www.computerhistory.org/
Monday, February 19
• U.S. President’s Day Holiday Tuesday, February 20
• Morning: Dropbox - http://www.dropbox.com/about
• Afternoon: Zendesk - http://www.zendesk.com/
• Evening: VC panel / UAlberta alumni event (TBD) o Kiersten Stead, Monsanto Growth Ventures o Jorge Heraud, Blue River Technology
Wednesday, February 21
• Fly to Seattle Thursday, February 22
• Boeing (TBD) - http://www.boeing.com/
• Microsoft - http://www.microsoft.com/
• UAlberta alumni event (TBD) Friday, February 23
• Morning: Starbucks Reserve Roastery - http://www.starbucksreserve.com/
• Lunch: Pike Place Market
• Afternoon: Amazon (TBD) - https://www.amazon.com/p/feature/rzekmvyjojcp6uc Saturday, February 24
• Fly to Edmonton