PHILADELPHIA UNIVERSITY

PHILADELPHIA, PA

MB490 Business Policy

Spring, 2009

Instructor:                                Harvey B. Lermack

Instructor’s Electronic Mail:     Lermackh@philau.edu     

Instructor’s Web Site:              http://faculty.philau.edu/lermackh 

Office Hours:                            By Appointment

__________________________________________________________________________________

Course Description

The process and techniques of strategy formulation, implementation and evaluation are studied and applied.  Case studies of domestic and international companies and not-for-profit organizations are used to integrate strategic management concepts with knowledge acquired in other functional area courses.  Includes extensive written individual and team assignments and oral presentations.

Purpose of the Course

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

What have I learned throughout my business education, and how can I use that knowledge to successfully enter and succeed in my first job?

Course Outcomes

This course integrates and applies all knowledge gained from previous courses throughout the program.

After completing this course, you will be able to:

·         Demonstrate mastery of core functional business areas, including Accounting, Finance, Economics, Marketing, and Corporate Structure and Culture; and their use and integration to create value in the organization.

·         Understand the process of strategy formulation, implementation and evaluation in global companies and industries.

·         Demonstrate interpersonal skills and knowledge required in the workplace, including analytical, communications, leadership, and teamwork.

·         Complete a semester-long team project, involving analysis of an actual company and recommendations for its future success.

·         Be prepared to enter the workplace or graduate school upon graduation.

Prerequisites

This is a capstone course that draws extensively on knowledge you have gained throughout the undergraduate business program.  Therefore, this course must be taken during the senior year.  Prerequisites:  senior status, B122, B123, B221, B642.  Any exceptions to this policy must be specifically approved by the Dean of Business Administration, or his or her delegate, in advance of registration for the course.

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.

Materials

Required

·          David, Fred.  Strategic Management:  Concepts.  12^tth Ed.   Upper Saddle River, NJ:  Prentice Hall, 2009.

§         Troyka, Lynn Quitman and Douglas Hesse.  Quick Access:  Reference for Writers, Custom Handbook for Philadelphia University.  Boston:  Person Custom Publishing, 2007.

Note:  This handbook was required for your Writing Seminar I, History I, and Writing Seminar II courses.

·          Internet access and electronic mail

·          Other handouts and reading materials will be supplied

Strongly Recommended

·          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 in class.

·          Daily Wall Street Journal or weekly Business Week

Important Contact Information

Professor Lermack’s electronic mail – 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.

Your telephone number and electronic mail address - Early in the semester,  provide to me your contact information, including your Philadelphia University electronic mail address.  Be sure to keep them up to date; advise me of changes.

Check your electronic mail every day - I will contact you via electronic mail In case of changes to the schedule or assignments, class cancellations, or other last minute information.  Also, I may add reading assignments.  Be sure to check your Philadelphia University electronic mail every day! 

Course Format

This is a highly participative course, in which you will discuss case studies and other company and industry situations in class with other students.  The instructor will act as a facilitator for those discussions.  There will rarely be any right or wrong answers; rather, you will be called on to provide evidence as to whether the company has selected the best strategies, and what you would do in their circumstances.  Therefore, you will need to thoroughly prepare for each week’s class, and come to class ready to discuss the strategies and performance of the companies.

Course Assignments

Course Schedule – Detailed requirements for the course are indicated on the attached Course Schedule.  Prepare all assignments thoroughly.  You are responsible for all materials assigned, whether or not they are discussed in class.

Wall Street Journal (recommended) – I recommend that you read the Wall Street Journal daily throughout the course, and get into the habit of reading it.  This is the best way to apply the concepts you learn in this course and throughout the program.

Prepare Cases for Discussion - Read, reread, and analyze the case.  Apply all of your previously gained knowledge to the situation, to determine the company’s best course of action.  This will require analyzing the information given about management, marketing, finance, and operations, as well as the current and future environment within which the business and industry operates.  Be prepared to discuss the details of the case, and your analysis and positions, in class.

Written Assignments –  All written assignments must 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 these 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.

Additional Written Assignments – If I find it necessary, based on class preparation, I may assign additional written assignments to be completed in class, with no advance notice.  In that case, I will advise you of the appropriate value of those assignments.

Exams / Quizzes – Brief written exams or quizzes will be given during the semester, to assess your mastery of the concepts.  These will cover the materials in the text and other readings, in the experiential exercises, and in our class discussions.  Information about the companies and industries covered in the cases will not be included.  Exams will be objective (multiple choice / true and false) type tests.

Additional pop quizzes may also be given without notice, covering the materials assigned for that day.

Make up quizzes or exams will not be given.  In the case of extreme (and documented) emergency, I may choose to re-weight another exam or assignment, or make other arrangements.

Extra credit, or the opportunity to re-do assignments or re-take exams, is not available on an individual basis.

Final Exam - There will be no final exam.

Team Assignments – Early in the semester, you will be assigned to work with a team.  You will complete a semester-long project together, which will be divided into sections.  On each section, the entire team will receive the same grade.  I will give you some resources and instructions to help you work effectively together.

At the end of each section, and at the end of the semester, each student will assess his or her team and teammates’ participation and contributions.  While every team member will receive the same grade for the team project, that may be adjusted for individuals to reflect peer assessments.

By the end of the semester, you will do the following.

·          Submit a detailed written paper to me, summarizing your project.

·          Present the results orally to the class, using appropriate handouts and visual aids.  Your oral presentation to the class will be a maximum of 15 minutes long, with an additional 10 to 15 minutes allocated for questions.  You will be permitted no longer!  Be certain to practice together in order to attain a professional presentation.

Presentations and Assessment Criteria - You will be required to make in-class formal and informal presentations to the class.  You should spend time preparing for these presentations, knowing that you could be called on to express and defend your positions at any time.  Think through what you would say, while you are reading and preparing.

In addition, you will make a formal presentation to the class and the instructor with your team at the end of the semester.  Prepare carefully and practice your presentation thoroughly.  For formal presentations, you should use visual aids, and prepare handouts for the class.  Be sure to practice together with your team to assure that the presentation is “seamless”.

I will assess the formal presentation using the criteria document that will be handed out early in the semester.

The Learning Center can provide assistance when preparing your presentations.

Evaluation

Grading Scale

A          (4.0)      93% - 100%      Superior/Excellent

A-         (3.7)      90% - 92%

B+        (3.3)      87% - 89%

B          (3.0)      83% - 86%        Good/Better Than Average

B-         (2.7)      77% - 82%

C+        (2.3)      73% - 76%        Competent/Average

C          (2.0)      70% - 72&

D+        (1.7)      67% - 69%

D          (1.3)      63% - 66%

D-         (0.7)      60% - 62%        Minimum Passing

F          (0.0)        0% - 59%        Failing

Course Policies

Undergraduate Course Policies – In addition to the policies outlined here, you will be expected to abide by the Undergraduate Course Policies outlined at the SBA web site, at www.philau.edu/sba/Misc/Ugrad_Policies.html .

Attendance and Participation - The success of this class depends on your active participation.  Come to each class prepared to discuss the subject matter assigned, and to actively contribute.   Plan to attend every class, and to stay for the entire class.  If you are absent, please contact another class member to find out what we did when you were absent, and 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.

Missing more than three classes will adversely affect your grade – Grade will be reduced by one letter grade on your fourth absence, then by one letter grade for each two absences.  Exceptions may be made at the instructor’s discretion, for emergencies only.

Lateness - 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.  Each three times late will be considered the same as one absence for purposes of grade reduction (see above).

Cell phones - Cell phones, personal digital assistants (PDA's), pagers, 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 or receive telephone calls or text messages during class. Failure to abide by this policy will negatively affect your grade.  Using cell phone during exams may be construed as a violation of academic honesty.

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

Recording classes – You may not record any part of any class – audio or video - without express prior consent from the instructor.

Honesty Statement – For each major written assignment you submit, provide a cover page with the following information:  Title, date, your name, to whom submitted, course name and number.  At the bottom of the cover page, write the following and sign it.

For team papers, each person must sign the statement.

"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."

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

Retention – Written assignments will be returned to you promptly.  Exams and other materials will be retained 4 weeks into the subsequent (fall or spring) semester.

Academic Honesty

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

Resources

Student Handbook

www.philau.edu/studenthandbook/index.htm

The student handbook includes all of the university policies, and is available on-line at the university web page. Specific Continuing and Professional Studies Accelerated Degree Completion Program Policies are described in the CPS Accelerated Degree Completion Program Student Handbook.

Gutman Library and web page

www.philau.edu/library

The home page of the Gutman Library is a gateway to a variety of information resources that will be useful in your research for this class, including various business databases.  Librarians are available online and in person at the information desk to help you with research for this course.

OIT Help Desk

For problems with any university technologies, contact the help desk on the Second Floor of Search Hall at:

E-mail (helpdesk@philau.edu)

Phone (215-951-4648)

Learning & Advising Center

www.philau.edu/learning

Professional writing tutors at the Learning & Advising Center are available to help you at any stage of your writing process.  During this course, you will be required to prepare written papers.  I encourage you to take advantage of this resource.

To make an appointment, stop by the Learning & Advising Center or call 215-951-2799.

Writing Program         

www.philau.edu/writing

This program assists students, faculty, and staff in writing-specific and writing intensive courses, co-curricular programs, interdisciplinary projects, faculty development, and professional writing collaborations within and beyond Philadelphia University. 

Computer Center                    

www.philau.edu/computingResource.html

Word processing facilities are available in the Computer Center, located in Search Hall.  Staff at the Computer Center is also available to assist you with your University e-mail account. 

Academic Advising     

Contact the Office of Continuing and Professional Studies at 215-951-2900.
Email: evening@PhilaU.edu

Blackboard Website               

bb.philau.edu

Blackboard is Philadelphia University's online, web-based learning platform. It provides faculty and students with a way to share information and ideas and to communicate with each other outside of the classroom experience.

 Information Literacy Statement

This course requires extensive use of computer-based technology to acquire and process research information, and to use various media to present your research and work in both written and oral formats. 

You will need to conduct independent research of various industries and companies.  This will involve consulting a variety of research sources.  One very important research tool will be 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 immediately.  This is an important skill you must have in order to progress in the real world.  Please see me as soon as possible for any assistance you may need.

You will be required to follow the procedures and policies outlined in “Quick Access,” which was the required resource in your Writing Seminar I, History I, and Writing Seminar II classes.  Please be sure to locate your copy, and bring it to class during the first two weeks.

Specifically, you will utilize university and other information resources to:

·         Acquire information from appropriate on-line resources available through the Gutman Library and from other Internet sources to complete your research assignments.  

·         Demonstrate the ability to critically and ethically apply the research information to your assignments.

·         Demonstrate the ability to use citations to document your information correctly, using MLA format.

·         Use the course web site and Blackboard to acquire information, engage in discussions, connect to important resources, and communicate with the instructor and with your peers in the class.

·         Use computer technology to prepare and communicate written assignments and effective presentation materials.

MGMT490 Business Policy

Team Charter

Professor Lermack, Spring 2009

Team Members and Contact Information

Team Goals

(May include project assignment goals, group process goals, quality level goals, etc.)

What are potential barriers to the achievement of these goals?

Ground Rules

Meeting schedule, locations, attendance expectations, agenda, assignment completion, communication methods, etc.

Conflict Management

What are potential conflicts that might arise among or between team members during this course?

How will team members deal with these and other conflicts? 

When will you consider “firing” a team member?

Continue on reverse

MGMT490 Business Policy

Team Peer Evaluation

Professor Lermack

Team Peer Evaluation

Team / Company:          _______________________________________________________________

Assignment:                  _______________________________________________________________

§         Do not put your name at the top of this sheet.

§         Using the scale below, individually rate each member of your team, including yourself.

§         Your ratings will be confidential and anonymous. 

§         Please give your honest evaluation and comments.

§         Put your comments on the other side.

§         When finished, fold this sheet.

5=Excellent            4=Very Good         3=Average             2=Poor                   1=Unacceptable

Please Provide Your Comments on Reverse

Format for Team Semester Project

MGMT490 Business Policy

Professor Lermack, Spring 2009

General

Attach a cover page for each section of the assignment, with the company name, team member names, date, and honesty statement (signed by every team member).

Papers must be professionally prepared, neatly typed, and carefully proofread.

Number the pages.

Document all citations and resources in every section, using MLA format.

Securely bind all sections of each assignment together.

Papers must be turned in at class on the day assigned.  Late papers will be penalized.

Papers will not be accepted electronically.

Project Objectives

Analyze an actual company, its industry, and how it competes within its industry.

Assess the company’s present strategies, and their likelihood of success in the future.

Evaluate the strategic alternatives available to the company.

Select those that are most likely to result in success, and defend your position.

Prepare an action plan to implement those strategies.

Prepare a persuasive executive summary and team presentation, to persuade the board of directors and senior management to adopt your strategy recommendations.

Presentation

At the end of the semester, each team will give a professional 15-minute presentation to the “Board of Directors” of your company.  Every team member must participate.  Ample time will be allocated for questions.  The grade will count significantly to the final project grade.

The purpose of the presentation is to convince the Board to invest in your recommended strategies.  Specifically, you will present evidence gathered during the semester as to the alternatives available to the company, why your recommendations are the best, and how resources should be employed to implement the recommendations.

Specific requirements for the presentation will be provided during the semester.

Assignments

Team Charter

Complete the team charter document.  Turn in one document per team.  Each team member must sign the document, and keep a copy.  I will refer to this document frequently during the semester.

Assignment One

Section 1.     Background

Present a concise statement of the company’s background and current situation.  Include a brief history.  What business(es) are they in, and in what industry(ies) do they compete?  What are their key products, significant challenges problems and opportunities, recent or expected changes in the company or industry, and other issues that must be addressed by the company?

Section 2.     Company vision and mission

Does the company have a vision and mission statement?  If not, why not?  If so, are they appropriate?

Refer to the guidelines in the textbook.  How could the statements be improved to better reflect the company’s long-term objectives? 

Rewrite (or write, if they don’t have one) the vision and mission statements, and explain why the revised statements are better.

Assignment Two

Section 3.     External Audit

Research the company and industry.  Assess in detail the key external forces that impact them, and explain.  Focus on the five categories in the textbook, and any other factors that you discover.

Provide an External Factor Evaluation (EFE) matrix.

Assignment Three

Section 4.     Competitive Analysis.

Prepare a thorough Competitive Analysis. 

Who are the key competitors, and how effectively do they compete?  Include comparative data.

Provide a “Five Forces” analysis of the industry.

Provide a Competitive Profile Matrix (CPM).

Assignment Four (In class)

Section 5.     Financial analysis.

Provide a thorough financial analysis of your company.

Bring your company’s financial data to class, along with industry averages

·         Look for trends in the financial statements

·         Calculate and explain the financial ratios

·         Compare the data over time to identify trends

·         Compare the data to industry data

Be sure to discuss and analyze your findings.

Assignment Five

Section 6.     Internal Audit

Prepare a thorough Internal Audit. 

Draw and explain the company’s value chain, and explain which areas provide core competencies for the company.

Develop a SWOT analysis

·         For SW’s, consider all of the functional areas addressed in the text – Marketing, Financial Management, Operations, etc.

§         For OT’s, consider the data developed in your external assessment.

Include an Internal Factor Evaluation (IFE) matrix.

Assignment Six

Section 7.     Strategic Alternatives

Identify and assess the strategies suggested for your company’s circumstances by the Grand Strategy Matrix.

Develop a thorough SWOT Matrix, identifying the feasible SO, WO, ST, and WT strategies.

Consider Michael Porter’s five generic strategies; which are appropriate in this situation?

Section 8.     Recommended Strategies and Support

Discuss the alternatives with your team.  Decide which strategies you recommend the company follows.  Be specific. 

·         General statements such as “grow internationally” are not sufficient.  For example, for international growth, you would need to specify the countries, products, projected customers, and means for expansion.

·         The strategies should be significant contributors to the company (revenues, profits), and help it to attain and maintain a strategic advantage.  While things like advertising campaigns are important, your recommendations should address the grand strategies and big questions, such as what business will we be in; where will we operate; who will our customers be; and what products and services will we offer.

Why do you recommend the ones you do? How do they exploit the key strengths of the organization, minimize their weaknesses, and help to build a sustainable competitive advantage? 

Assignment Seven

Section 9.     Implementation Plan

Set forth your recommended action plan to implement the strategy recommendations.  What are the key issues to the success of the implementation plan?  Spell out clearly what you recommend, what resources you are asking for, and what are the risks and rewards of your recommendations.

Section 10.   Marketing Plan

Provide a thorough Marketing Plan to attain your recommendations.  Include research data regarding customers and competition, resource requirements, and costs.

Provide specific short and long range marketing plans, including quantitative objectives.  Show what metrics you will use to monitor your progress and measure their attainment.

Section 11.   Financial Plan

Provide a thorough Financial Plan to attain your recommendations, including. 

·         Projected cost of the proposal (i.e. investment required at time zero for the project to be implemented)

·         Projected future benefits, costs, and profit (i.e. trend in sales, expenses, etc. for the next 5 years)

·         Evaluation of the proposal based on costs, benefits, and profit, using standard metrics such as ROI, break-even analysis, Net Present Value and IRR.

o        (3a) Some kind of scenario analysis to see the impact on metrics if some of the key variables change, such as sales decline by 20% due to recession

·         How the money will be raised, costs associated with raising the money, and rationale for using a specific financing mix (i.e. why the proposal should be funded by debt rather than equity)

·         How the money will be spent, e.g. on buildings, advertising, etc. 

·         Potential risks from undertaking this project, and proposed risk management strategy.

·         Is the project sustainable in the long run (i.e. what strategies have been implemented to ensure continuing market share and growth)?

Section 12.   Executive Summary

Prepare a single-page executive summary.  Assume that the CEO will read only that page, and that this is your opportunity to convince him or her to adopt your recommendations.  Concisely and persuasively present your analysis, conclusions and recommendations; and the key implementation issues, especially revenues and costs. 

Write the Executive Summary last, to rely on all of the information you have gathered.  However, when the entire document is compiled, this should be inserted into the book first.

Section 13.   Cover Letter and Resume

Every team member must:

·          Write a letter to the Chief Executive of the company.  In it, discuss why you would like to work for this company, and what you think you have to offer.  The letter should reflect what you have learned during your case analysis.

·          Prepare and enclose a personal resume that brings out the skills and experience to support your letter.

Assignment Eight

Section 14.   Presentation Materials

All presentation materials are due.

·         Turn in your complete case analysis in a professionally prepared binder, with appropriate cover page, table of contents, and section dividers.  This should include your Executive Summary first, then each (graded) section in order.  There is no need to reprint the entire paper.  If you have rewritten any sections, place only the revised, re-graded sections into the binder.

·         Provide your presentation on an electronic medium (CD that may can read on any computer).  This will be loaded onto the computer, for use during your presentation.

·         Provide 5 copies of your slides (3 to a page handouts are fine), and 5 copies of your Executive Summary.  These will be provided to the evaluators for reference during your presentation.

Presentation Requirements

At the end of the semester, each team will give a professional 15-minute presentation (no more time will be allowed) to the “Board of Directors” of your company.  Every team member must participate.  Ample time will be allocated for questions.  The grade will count significantly to the final project grade.

At the presentation, each team member must turn in a peer evaluation sheet, covering the presentation.

The purpose of the presentation is to convince the Board to invest in your recommended strategies.  Specifically, you will present evidence gathered during the semester as to the alternatives available to the company, why your recommendations are the best, and how resources – cash, people, and other - should be employed to implement the recommendations.

You may utilize whatever format you feel is best to convince the board to adopt your recommendations.  The board will evaluate all the teams and determine which has the most persuasive argument; that team will win the competition.

You should briefly cover the external pressures, industry dynamics, and internal financial and strategic considerations.  However, you must spell out CLEARLY what you recommend, what resources you are asking for, and what are the risks and potential rewards of your recommendations.  Also, CLEARLY spell out the costs of your recommendations; where the money will come from; how it will be spent; and what will be the resulting future cash benefits, in a clear ROI / Risk and reward financial analysis.  Be prepared to defend your numbers.

Based on past presentation sessions, most of the questions will be related to the Marketing and Financial Plans.  Therefore, be thoroughly knowledgeable about these aspects, and be sure to have sufficient additional, indexed data slides to back up your analysis.

MGMT490 Business Policy and Strategy

Spring 2009