PHILADELPHIA UNIVERSITY

PHILADELPHIA, PA

Day MBA Program, Spring 2009

MBA-642 Strategic Planning in a Global Environment

Instructor - Harvey B. Lermack

LermackH@philau.edu

http://Faculty.philau.edu/lermackh

_________________________________________________________________________________

Catalogue Course Description

The course will focus on the design and implementation of a strategic plan in global industries and the importance of such a plan in dealing with the many challenges facing organizations in the years ahead.  Strategic planning models and research findings will be investigated.  During the semester, students will analyze strategic threats and opportunities that confront corporate level executives as well as managers of business units.  Students will work in teams on the development of a strategic plan for a local profit or nonprofit organization.  The focus will be on developing effective strategies that clarify the future direction of the chosen organization and deal with the rapidly changing environment.  Strategic plans will be presented in oral and written form to the organization.  This is a capstone course and students will draw from the knowledge they have gained throughout the MBA Program.  Extensive written individual and team assignments and oral presentations are included.

Purpose of the Course

What have I learned throughout my business education, and how can I use that knowledge to successfully:

·          Assess my current or future employer’s company and industry?

Why do the top-level managers of companies make the long-term decisions they make?

How do entrepreneurs identify and take advantage of business opportunities?

Course Learning Objectives

1.       Competently integrate previous academic course materials and professional experiences, using case studies, projects, and Business Week articles. 

·         For each case study and article, you will be presented with selected information about the company’s management, governance, marketing, finances, and operations, which you may need to augment with research through the Internet.  In turn, you will use your previously acquired skills to analyze the company and their leadership, and to make recommendations for improvement.

2.       Understand how effective corporate leaders implement their companies’ strategies.  Using contemporary articles, readings and case studies, we will identify the characteristics, behaviors and skills that make some leaders effective, and render others ineffective.

3.       Analyze the external environment within which your assigned industry operates, and the factors that companies must consider when developing and implementing their strategic direction.

4.       Demonstrate an understanding of the corporate governance, ethical, and social responsibilities of top managers and the board of directors, using readings, cases, and examples. 

5.       Demonstrate an understanding of the steps required to develop and implement a successful business plan.  With your team, develop a complete business plan for a new venture, and be able to explain how the venture would create value for their shareholders, customers, employees, and other stakeholders.

6.       Successfully present and defend the business plan to a panel of professional judges, competing with other teams to obtain funding for the venture.

7.       Investigate how globalization is changing the business landscape.  In conjunction with the international trip, we will investigate some international businesses and industries, and identify the impact that globalization has on the strategic planning process.

Prerequisites

This is a capstone course drawing extensively on knowledge gained throughout the MBA program, and is normally taken during the last semester.  All core courses must be completed; the instructor must approve any exceptions in advance.  It is the student's responsibility to assure that all prerequisite work has been successfully completed.  If at any time during the semester it is learned that a student has not successfully completed the prerequisites, they will be dropped from the course receiving neither course credit nor tuition refund.

Required Materials

1.       Carpenter, Mason A. and William Gerard Saunders.  Strategic Management:  Concepts, 2^nd Ed. (softbound).  Upper Saddle River, NJ:  Pearson Prentice Hall, 2009.

2.       Packet of cases and articles for the current semester.

·          Current required cases are available for purchase online; instructions will be provided early in the semester.

·          Please honor the copyrights associated with the cases and articles by not copying and distributing them.

·          As cases generally change each semester, many previously used cases are not acceptable.  Check with the instructor before purchasing used cases.

3.       Internet access and electronic mail.

4.       Business Week Magazine - Read it every week, and bring in appropriate topics each week for class discussion.

5.       Contemporary readings accessible on the university eRes (electronic reserve) system.  This may be accessed through the university library page http://www.philau.edu/library/blackboardanderes.htm.  The password is Strategy.

Strongly Recommended

6.       Laptop computer – If you have one, bring it to class.  From time to time, we will access the Internet and work on other materials in class.  If you do not have a laptop, you should be able to share with others in class.

7.       Daily Wall Street Journal is strongly recommended.

Important Electronic Links

Professor Lermack’s electronic mail address

·          LermackH@philau.edu

Professor Lermack’s Web Site

·          http://faculty.philau.edu/lermackh

My web site includes the course requirements and standards; updates to the course schedule and assignments; and resource links for your weekly, written and term assignments.  Be sure to check it frequently, as you will be responsible for items posted to it during the week.

Your Expectations for the Course

Early in the course, we will discuss at length your expectations for the course.  We will write them down, and review our progress to them periodically during the course.

Course Requirements

Prepare all assignments thoroughly.  You are responsible for all materials assigned, whether or not they are discussed in class.  Be sure to turn in all written assignments on the date due.  Also be sure to check your electronic mail daily for updates to assignments.  Information about format and standards for written assignments are on my web site, and will be discussed in class (see policies below). 

For cases, read, reread, and analyze the case, and be prepared to discuss the details of the case, and your analysis and positions, in class.

There will be two semester assignments.  Guidelines for each assignment are provided in this syllabus.

·         Individual Assignment - Early in the semester, you will prepare several through written assignments in which you will analyze the wine industry.  Requirements for these papers are below, and will be discussed in class.

·         Team Assignment –You will work with your assigned team to develop a Business Model and a Business Plan for a new venture in the wine industry.  At the conclusion of the semester, you will present your idea to a panel of judges who will determine whether or not to fund your project, in competition with your classmates.

All papers should be professionally written, using MLA style guides and documentation, reflecting thorough analysis of the assigned topics.  Assistance is available from me, as well as from the learning center.  While I do not specifically mark papers for spelling and grammar, I will consider these in your grade.

As the term progresses, I will explain in detail what is to be included in each written paper.  If you do not understand, be sure to ask for clarification.  I do expect that your work be thorough; that you apply the concepts described in the text and our classroom conversations; and that you use the financial analysis, marketing, economics, and other analytical tools you have learned throughout your MBA curriculum.

Tentative Grading

·          Class Preparation and Participation                       35%

·          Individual Written Assignments                                                25%

·          Team Assignments and Presentations                 40%

Course Policies

Attendance and Participation - The success of this class depends on your active participation.  Come to each class prepared to discuss the assignments, and to actively contribute.   Plan to attend every class, and to stay for the entire class.  Missing more than one or two classes, or excessive lateness, will adversely affect your grade. 

If you are absent, please contact another class member to find out what we did when you were absent, and for any changes to the assignments.  You will be responsible for all assignments, even if you miss a class.  Please exchange contact information with at least two other class members after our first or second class.

Be on time and stay in class – Be on time for every class, and take care of your personal needs before class.  You should leave class only for an emergency, in order to ensure you don’t miss anything important.

Cell phones - Cell phones, personal digital assistants (PDAs), and other electronics are to be turned off and stored away during classes and especially during exams unless expressly permitted by the instructor. You are not to make nor receive telephone calls or text messages during class. Failure to abide by this policy will negatively affect your grade.

Electronic Mail – Be sure to give me your PhilaU electronic mail address at the beginning of the semester, and to check it frequently.  I will use it to contact you during the semester.  I will not use any other address.

Food and Drink – Please do not bring food and drink to class.

Laptop Computers – I encourage you to bring your laptop to class.  Please use it for research, notes, and course-related activities only, and not to check your electronic mail or for other personal reasons.  I will do my best to make each class interesting; in turn, I ask that you be completely engaged.

Presentations - You will be required to make presentations to the class.  You should prepare carefully and practice your presentation thoroughly.  You should use visual aids, and prepare handouts for the class.  For team presentations, you should practice together to ensure the presentation is “seamless”.  Assistance when preparing your presentation is available from the Learning Center.  It is your responsibility to assure that the necessary equipment is available and in working order for your presentation.  I will be glad to help if asked well in advance.

Recording – You may not record any classroom session – either audio or video – without advance permission of the instructor.

Retention – Written assignments will be returned to you promptly.  Any not returned will be retained 4 weeks into the subsequent (fall or spring) semester.

Written Assignments – All written assignments must be typed on a computer, and follow accepted standards of style, spelling, organization and grammar.  This includes proper documentation of all research.  Writing standards and grading criteria are available at my web site.  While I do not specifically mark papers for spelling and grammar, I will consider those in your grade.  If you do not understand what I expect to be included in any written paper, be sure to ask for clarification before you start writing.  I do expect that your work be thorough, and that you apply the concepts described in the text and our classroom conversations.

Academic Honesty

You will be expected to complete your work on your own or as assigned in teams, and according to the most stringent standards of academic honesty.  Cheating or plagiarism will not be tolerated.  The first offense will result in a zero for the assignment, with no opportunity to redo or make up the work.  At the discretion of the instructor, additional sanctions may be imposed depending on the extent of the offense.  The second offense will result in failure of the course. 

Please print, read and abide by the University Academic Integrity Policy at http://www.philau.edu/learning/pdf/AcademicIntegrityPolicy.pdf

Honesty Statement

For each written assignment you submit individually or with your team, provide a cover page with the following information:  Title, date, your name(s), to whom submitted, course name and number. 

At the bottom of the cover page, type the following and sign it.

"By submitting this paper, I (we) affirm that this work is my (our) own, except for where the words or ideas of others are specifically acknowledged.  I (we) also affirm that this work did not exist before the beginning of this course; and that neither I (we) nor anyone else has submitted or will submit this paper (or one substantially consisting of the same information) for credit for this or any other course."

If this is not provided, the assignment will be returned ungraded, and will be considered late when resubmitted.

Research Methods

This is a graduate level course.  You will conduct in-depth analyses of industries and companies, using information from the textbook, from class, and from your independent research.

In order to complete the assignments, you will need to consult a variety of research sources.  One very important research tool is the Internet.  If you do not already have a method for Internet access, or do not know how to conduct research on the Internet, you will need to acquire access and learn how to use it.  This will be an important skill you must have in order to progress in the real world. 

Some useful web site links are available at my web site.  Please let me know which ones you find especially useful, and about other sites you use, so I may share that with this and future classes.

Extensive research tools are available from the library, both on-campus and through the university web site.  Assistance for their use is available from the library, in person and on line.

Learning Center

The Learning Center offers assistance and peer tutoring, including for writing and presentations.  As graduate students, I expect your work to be professionally prepared and presented.  Take the opportunity to consult with the professionals at the Learning Center in order to do your best work.

MBA642 Course Schedule

Day MBA Program, Spring 2009

Professor Lermack

 
MBA642 Strategic Planning in a Global Environment

Individual Written Assignment - Wine Industry Written Analysis

Day MBA, Fall 2009

By Professor Harvey B. Lermack

Philadelphia University

Revised January 5, 2009

The Assignment

You are a Partner in a large management consultant company.  A highly respected business executive who is considering developing a new venture in the wine industry has engaged you.  The venture will be global in scope, and will involve a significant initial and ongoing investment.  Therefore, your client, and other stakeholders who are involved in the project, want to be sure that they thoroughly understand the external environment and competitive dynamics of the industry in which they will be investing.

You must conduct a thorough analysis, and complete a comprehensive, professionally written report.  This report will serve as the foundation for the new venture business plan, so it must be thoroughly researched and prepared.  All research must be for the latest year for which data is available.

Academic Integrity

Print the document “Philadelphia University Academic Integrity Policy” from the Philadelphia University web page at www.philau.edu/learning/AcademicIntegrityPolicy.pdf and read it carefully.   You will be expected to adhere to these policies at all times during this course.

Print the document “MLA Documentation Guidelines” from the Philadelphia University web page at www.philau.edu/learning/MLA2006.pdf.  You will be expected to thoroughly document your research in each written submission.  Cite your resources in footnotes properly, using the Modern Language Association (MLA) style.  At the end of each section, include a list of your resources for that section.  Other citation resources are available at my web links page.

Provide a cover page for each section of your paper, containing the following information:  Title, date, your name, to whom submitted, course name and number.  At the bottom of the cover page, write the following paragraph and sign your name.

"By submitting this paper, I affirm that this work is my own, except for where the words or ideas of others are specifically acknowledged.  I also affirm that this work did not exist before the beginning of this course; and that neither I nor anyone else has submitted or will submit this paper (or one substantially consisting of the same information) for credit for this or any other course."

Report Structure

The paper will be composed of several sections, as outlined below.  Use the following headings for the sections of your paper.  The questions under each heading provide guidance for your analysis.  Be sure to address each of these; you may or may not opt to use them as subheadings for your paper.

When handing in each section of the paper, include a cover page and resources page.  Number the pages, and securely bind that section.  Please do not use heavy 3 ring binders, plastic paper protector sheets, or anything that will make the paper heavy or cumbersome.

Part 1 – External Environment Analysis

Reference:  Text Chapter 4

1.       Provide a thorough PESTEL analysis of the industry’s macro-external environment.

Document your research.  Include information from at least 10 report or periodical sources, as well as from several research databases.  Those can be found on the Internet, or at the PhilaU library web site.

2.       Draw a detailed value chain of the wine industry, and explain each component in detail. 

·         For each component, explain the impact of the PESTEL issues on the value chain.

·         As a foundation, use the diagrams on page 88 of the text, and in the case “Global Wine Wars.”  (Neither is sufficient on its own.)

Part 2 – Industry Competitive Analysis

Reference: Text Chapter 4 and Reading “The Five Competitive Forces That Shape Strategy”

1.       Provide and analyze overall financial data for the wine industry – revenues, profitability, growth or decline, etc.

2.       Identify the key competitors within the industry, and briefly describe each company’s competitive position (relative size, revenues, etc.) and likely future moves. You may summarize this data in a table.  Consider the top three American and top three Global competitors.

3.       Complete a thorough industry analysis, following the format in “Typical Steps in Industry Analysis” from Porter’s article, “The Five Competitive Forces That Shape Strategy,” p. 15. 

References

Carpenter, Mason A. and William Gerard Saunders.  Strategic Management:  Concepts, 2^nd Ed. (softbound).  Upper Saddle River, NJ:  Pearson Prentice Hall, 2009.

Porter, Michael E.  “The Five Competitive Forces That Shape Strategy.”  Harvard Business Review January 2008:  79-93.

MBA642 Strategic Planning in a Global Environment

Semester Team Assignment - Wine Industry New Venture

Day MBA, Fall 2009

By Professor Harvey B. Lermack

Philadelphia University

Revised January 5, 2009

The Assignment

Your team plans to launch a new venture in the wine industry.  In order to be successful, you need to develop a comprehensive business plan, and use it first to acquire funding for the venture; and then as a roadmap to implement your new venture plan. 

The venture will be one selected and developed by your team, and must be realistic, and on a scale where it can be implemented by your team within the next one to two years.

At the end of the semester, you will present your plan to a panel of respected businesspersons, who will determine whether the plan can be successfully implemented, and whether the team should be awarded funding to do so.  Remember that this is a competitive investment environment where only a limited amount of funding is available.  Therefore, you will be in competition with other teams for that funding.

Academic Integrity

Print the document “Philadelphia University Academic Integrity Policy” from the Philadelphia University web page at www.philau.edu/learning/AcademicIntegrityPolicy.pdf and read it carefully.   You will be expected to adhere to these policies at all times during this course.

Print the document “MLA Documentation Guidelines” from the Philadelphia University web page at www.philau.edu/learning/MLA2006.pdf.  You will be expected to thoroughly document your research in each written submission.  Cite your resources in footnotes properly, using the Modern Language Association (MLA) style.  At the end of each section, include a list of your resources for that section.  Other citation resources are available at my web links page.

Provide a cover page for each assignment, containing the following information:  Title, date, your names, to whom submitted, course name and number.  At the bottom of the cover page, write the following paragraph and sign your names.

"By submitting this paper, we affirm that this work our my own, except for where the words or ideas of others are specifically acknowledged.  We also affirm that this work did not exist before the beginning of this course; and that neither we nor anyone else has submitted or will submit this paper (or one substantially consisting of the same information) for credit for this or any other course."

Assignment Structure

Part 1 and 2 – Present the business model for your new venture, based on the format outlined in the reading “Reinventing Your Business Model.”

Part 3 and 4 – Develop a comprehensive and persuasive business plan for your new venture.

Past 5, 6, and 7 – Develop and deliver a persuasive presentation to convince a panel of businesspersons to lend money or to provide equity financing for your new venture.  The presentation will be a maximum of 15 minutes, followed by a question and answer session.

Part 1 – Team Business Model Summary

Prepare an overall summary of your new business venture’s business model.  Include the names of the people who will be involved; the other stakeholders of the project; what goods and services the venture will provide, and to whom; where it will operate; a general timetable for the project; and a statement as to why you think this venture will be successful in today’s economic environment.

Refer to the reading, “Reinventing Your Business Model,” page 5. 

Provide a general explanation of:

1.       The Customer Value Proposition

2.       The Profit Formula – (general)

3.       The Key Resources

4.       The Key Processes

Part 2 – Business Model in Detail

Building on the information provided in Part 1, provide a thorough, detailed explanation of:

1.       The Customer Value Proposition

2.       The Profit Formula – (detailed, including the projected revenue model, cost structure, margin model, and resource velocity)

3.       The Key Resources

4.       The Key Processes

Part 3 – Business Plan – The Business

Develop a plan that will be realistic, and that you can use (if you so decide) to seek funding and to establish an actual new venture.  For the final presentation, important judging (and grading) criteria will include how realistic and professional the plan is, and whether an actual lender or investor would find the plan realistic and worthy of investment.

First, in order to refer to maximize the likelihood of success for your plan

·         Review the recommendations in “How to Write a Great Business Plan” (sections on People, Opportunity, and Context).

·         Review the ideas presented by our guest experts.

·         Review some successful business plan examples from the SBA and other web sites.

The United States Small Business Administration has a comprehensive site that you can use for guidance when developing your business plan.

http://www.sba.gov/smallbusinessplanner/index.html

As you develop the plan, you should follow (generally) the format provided at the SBA site “Writing the Plan.”

http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/SERV_WRRITINGBUSPLAN.html

You may customize the format as appropriate, to better suit your needs.  However, you need to provide the basic information in the outline (as appropriate).

Additional valuable information is found at the SBA web sites

“How to Write a Business Plan” (SBA) - http://www.sba.gov/idc/groups/public/documents/sba_homepage/pub_mp32txt.txt

Financing - http://www.sba.gov/smallbusinessplanner/start/financestartup/index.html

Starting a business - http://www.sba.gov/smallbusinessplanner/start/index.html

For the write-up, generally follow the SBA format.

Elements of a Business Plan (SBA Site)

1. Cover sheet
2. Statement of purpose
3. Table of contents

                Section I. The Business

               A. Description of business
               B. Marketing
               C. Competition
               D. Operating procedures
               E. Personnel
               F. Business insurance

Part 4 – Business Plan – Risks and Rewards, Financial Data, and Supporting Documents

Enumerate the risks related to your venture, and the risk / reward balance.  (See “How to Write a Great Business Plan.”)

Refer to the format in the SBA web site “Writing the Plan” - sections II.  Financial Data, and III.  Supporting Documents (it may not be appropriate for you to provide all of these supporting documents, such as tax returns – but you should provide those that are appropriate).

In the financial section, be sure to apply the techniques that you learned from Dr. Malhotra in Financial Management to provide the following information in detail:

You should develop your own format for Section I-A.

Sections II and III follow the format in “Elements of a Business Plan” at the SBA Site.

Section I-A.  Risks and Rewards

Section II. Financial Data

               A. Loan applications
               B. Capital equipment and supply list
               C. Balance sheet
               D. Breakeven analysis
               E. Pro-forma income projections (profit & loss statements)
               F. Three-year summary
               G. Detail by month, first year
               H. Detail by quarters, second and third years
                I.  Assumptions upon which projections were based
               J. Pro-forma cash flow

               Section III. Supporting Documents (As appropriate)

              A.  Not required -   Tax returns of principals for last three years Personal financial 
                   statement (all banks have these forms)
               B. For franchised businesses, a copy of franchise contract and all 
                   supporting documents provided by the franchisor
               C. Copy of proposed lease or purchase agreement for building space               
               D. Copy of licenses and other legal documents
               E. Required - Copy of resumes of all principals
               F. Copies of letters of intent from suppliers, etc.

Part 5 – Business Plan – Draft Presentation Slides

Provide a hard copy of the PowerPoint slides you will use for your final presentation.

These should be substantially complete, and ready to go.

However, minor revisions will be permitted prior to the final submission.

In addition to the presentation slides, you should include additional, indexed slides with details, including marketing data, financial data, etc., to which you can refer during the question and answer session.

Part 6 – Business Plan – Final Plan and Presentation Slides

Turn in your completed, bound business plan.  This will be provided to the presentation evaluators for their reference during your presentation.  Insert the graded Parts 1 through 5 that were returned to you, with professional binding and section separators.

Provide a hard copy and electronic copy (DVD disc that is readable by any computer) of the PowerPoint slides you will use for your final presentation.  These should be complete, and ready to go.  At this time, no further revisions will be permitted prior to the presentation.  This will be the version loaded onto the computer at the presentation location.

Part 7 – Business Plan Presentation

Every team will make their final presentation on the same day. 

Location and time will be announced.

A panel of judges, using the following criteria, will evaluate the presentations:

·         Complete and professional materials

·         Effective and persuasive presentation

·         Realism of the project

·         Thorough understanding of the overall venture, its context, and details, by every member of the team

·         Detail required to convince a lender or investor to provide funding, with adequate support to provide assurance of likelihood of success – especially financial

·         Ability to respond to questions and concerns persuasively

Based on past experience, the evaluators will ask extensive questions, and probe for detail – especially financial- and marketing- related.  Further, they may ask specific questions of specific individuals – not necessarily the individuals who presented the sections in question.  Therefore, it is imperative that every member of the team understands the overall project, and can respond to the evaluators.

References

Carpenter, Mason A. and William Gerard Saunders.  Strategic Management:  Concepts, 2^nd Ed. (softbound).  Upper Saddle River, NJ:  Pearson Prentice Hall, 2009.

Johnson, Mark W. et al.  “Reinventing Your Business Model.  Harvard Business Review December 2008:  50-59.

Sahlman, William A.  “How to Write a Great Business Plan.”  Harvard Business Review July-August 1997:  98-108.

MBA642 Strategic Planning in a Global Environment

Assignment Study Questions

Day MBA, Fall 2009

By Professor Harvey B. Lermack

Philadelphia University

Revised January 5, 2009

Week Two – Strategy and Strategic Leadership

General Motors:  Acting Strategically?

1.       What are the key characteristics about the automotive industry that have led to the difficulties that many companies are experiencing today?

2.       Does GM have any sustainable competitive advantages?

3.       What decisions could GM have made differently to help avoid some of the difficulties their company are experiencing today?

Week Three – Internal Environment and Business Models

Howard Schultz and Starbucks

1.       Apply the readings “What is Strategy?” and “Reinventing Your Business Model” to the Starbucks case.

§          What were the key strategic decisions that Howard Schultz made which led the business to be a success?  Why were they strategic rather than operational?

§          What key operational decisions did he make which led the business to be a success?  Why were they operational rather than strategic?

§          How and why did these decisions create “fit” among the company’s activities?

§          How and why did they lead to a competitive advantage?  Do you believe that advantage is sustainable?  Why?

§          What trade-offs did he make?

2.       What characteristics of leadership has Howard Schultz demonstrated in building Starbucks?

3.       How does Starbucks create value for the shareholders, customers, employees, and other stakeholders?

Week Four – External Environment

Global Wine Wars, and The California Wine Cluster

1.       What are the most significant macro-environmental issues that are leading to changes in the wine industry?

2.        How do you expect the industry to change in the future because of these forces?

Week Five – Industry Analysis

Five Competitive Forces that Shape Strategy

1.       Using the reading “Five Competitive Forces that Shape Strategy,” evaluate the structure of the global wine industry.  How and why is that structure changing?

Week Six – Business Strategies and Business Plans

Facebook

1.       What leadership characteristics have helped Facebook to be successful?

2.       What are the organization’s sustainable competitive advantages?

3.       What should Zuckerberg do to develop the organization?

4.       Should he expand globally?

Week Seven – Business Strategies

Sendwine.com

1.       If you were a venture capitalist in July 1999, would you have invested in Sendwine.com?  What criteria would you use to make that decision?

2.       Would you diversify for the 1999 holiday season?

3.       What would you recommend as a marketing plan at that time?

4.       What steps should Lannon take to develop the organization?

Week Eight – Corporate Governance and Ethics

Ethical Conflicts at Enron

1.       What were the root causes for the corruption that occurred at Enron, and ultimately led to its downfall?

2.       Who do you think were the chief culprits, and whom do you think should be blamed for this?

3.       How has this situation ultimately changed the structure of business governance in the United States?

4.       What was Sherron Watkins’ role as an Enron executive, and as a whistleblower?  Do you admire her?  Did she benefit from her actions?

HP & COMPAQ Combined

1.       Why did Carly Fiorina feel that combining the two companies would increase the total value added to customers (i.e. their willingness to pay) and therefore to shareholders?  What types of competitive advantage did she seek?

2.       What were the key strengths and weaknesses of HP and COMPAQ at the time of the merger?

3.       Why did the board feel that Carly Fiorina’s merger strategy was fatally flawed?  Was that the real reason for her dismissal?

4.       Looking back, do you think that the merger strategy was the best way for the company to proceed at the time?  What is your evidence?  Why might that appear different in hindsight than at the time that Carly was dismissed?

Week Ten – New Ventures

Jet Blue Airways

1.       What are the key success factors for Jet Blue?

2.       What will it take to execute on these factors?

3.       If this organization were going public the week after the case, would you have invested in it?  Why / why not?

Week Eleven – Business Strategies

Vintage Directions, Inc.

1.       Assess the Vintage Directions business model and plan.  Is it sound?  Do you expect it to be successful in the future?

2.       What are their sustainable competitive advantages?

3.       What potential impact will personal issues have on the success of the organization?

Week Twelve – International Strategies

IKEA’s Global Sourcing Challenge

1.       How appropriate were the various actions that IKEA management took in response to the crisis of 1995?

2.       Evaluate the IWAY policies and practices.  What are the benefits?  What are your concerns?

3.       What does the Venkat audit tell us about the effectiveness of IKEA’s overall approach to dealing with the problems of child labor in its supply chain?

4.       What should Marianne Barner recommend to deal with the Venkat audit issues?

5.       What long-term changes in IKEA’s philosophy, policies, and practices should she recommend?

Week Thirteen – Corporate Strategy, and Social / Ethical Responsibility

Berkshire Hathaway Chairman's Letter and Owners Manual

1.       Why and how did Warren Buffett build the diversified Berkshire Hathaway Company?

2.       In what ways does the company add value to shareholders, customers, employees, and other stakeholders beyond that which would be captured by the sum of the businesses if they were all owned and run separately?

3.       How is this form of ownership similar of different than a mutual fund?

4.       What makes the corporate governance practices described in the Owners Manual and the Chairman’s Letter unique, compared with other companies?

5.       Do you think it is healthy for one man and his family and friends to have such total control over a company?  Why has this been allowed to continue for so long?  What would you recommend from this standpoint?

Social Responsibility of Business is to Increase Its Profits

1.       What are Friedman’s arguments against corporate social responsibility?

2.       What are the arguments of his opponents?

3.       Why do you think he won the Nobel prize for economics for his work?

Week Fourteen – Social / Ethical Responsibility

Parable of the Sadhu

1.       Where is the limit of an individual’s responsibility to support members of his team and organization?

2.       Whichh of the participants in this situation acted ethichally?  Unethcially?

3.       What do you think you would have done in this situation?

Hershey Foods is Considering a Plan

1.       What responsibilities do the Hershey Company management, its Board, and the Hershey Trust have to the company’s shareholders, customers, employees, community, and other stakeholders?

2.       Do you believe that the Trust should sell their shares, based on the information provided?  Why / why not?

Week Fifteen – Social / Ethical Responsibility

Malden Mills

1.       What responsibilities did the Malden Mills management and board have after the fire in 1995, and prior to the bankruptcy filing 2001, to the company’s shareholders, customers, employees, community, and other stakeholders?

2.       Do you think that Aaron Feuerstein lived by his personal values?  Why?  What were the obstacles to his living up to those values, and how and why did he overcome them?

3.       Based on his performance during the time covered by the case, do you think that Feuerstein should have been removed as the CEO of Malden Mills when they emerged from bankruptcy in 2003?  If not, why not?  If so, what characteristics should the company have sought in the new CEO?