Prestige PGDM, Indore

Course Outline
Course Title: Strategic Management
Credits: 3 Area: Strategic Management Course Code: SMT06

Instructor: Dr. Poornima Email: Poornimamishra1502@gmail.com

Mishra

Batch: PGDM 2021-23 Semester: II

Course Description:

The course introduces the key concepts, theories and tools related to formulation and implementation
of strategies at business and corporate level. It focuses on how these theories and tools help in
explaining industry attractiveness, identifying sources of a firm’s competitive advantage, analyzing
firms’ competitive position, and defining firm boundaries in the face of uncertainty and competition.
These involves utilization of resources to enhance the performance of the firm, creation of superior
value for stakeholders, and conceiving a trajectory for the future. The integration and application of
knowledge acquired in prior courses (different functional disciplines) is required to develop a holistic
perspective i.e. viewing the firm as a whole.
The course addresses and reviews two critical managerial questions:
•How and why do some firms create superior value for stakeholders?
•How do they sustain such performance?

Course Objectives:

1. To understand strategic analytical tools and strategic management process.

2. To apply strategic management tools and process for analyzing industry attractiveness and a
firm’s sources of competitive advantage.
3. To analyze current and future strategic challenges, identify assumptions, create and assess
strategic alternatives.
4. To appreciate and apply corporate strategy theories and explain rationale behind value
creation and capture.
6. To understand concepts and tools of strategy implementation.
7. To discuss fit between strategy and strategic implementation

Learning Outcomes:

At the end of the course, the students will be able to:

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 1. Acquire the ability to develop comprehensive view of key concepts in strategy applicable in
any organization.

2. Develop a basic understanding of the nature and dynamics of strategy formulation and
implementation processes in complex organizations.

3. Demonstrate knowledge of the different types of business strategies and be able to choose
an appropriate strategy.

4. Identify strategic issues being faced by the organizations and develop appropriate courses of
action.

5. Develop critical and strategic thinking abilities to analyze the influences of external
environment, industry, and competition on the firm and chart the firm’s strategy.

6. Synthesize knowledge on different functional areas into a comprehensive understanding of

the competitive advantage of the firm.

Pre-requisite course(s), if any: None

Career Focus:

A strategic management course offers an integrated view of all the functional areas to assist in the
decision-making process for success in the competitive market. Skills and knowledge in strategic
management make a student a strong candidate for the positions such as business analyst, project
analyst, product strategist, business development coordinator, strategic initiatives associate, consultant
and others.

Pedagogy:

This course will be delivered through a combination of participative case analysis, lecture-discussion,
readings from magazines/newspapers, simulation and project presentations. Lectures will be delivered
to explain key theories and frameworks. Cases and reading materials are assigned for each session to
provide real-world applications and managerial experiences. The quality of case discussion depends
on your degree of preparation, active listening, and participation. In this reference, guide to case
analysis is provided in Appendix A.
In addition to case discussions, simulation exercises will be scheduled where students make strategic
decisions based on available information and observe the consequences of their decision-making. The
simulation exercises are complete and effective only when the students come fully prepared to the
class. Thus, the onus for deriving maximum value from this course lies as much with students as with
the instructor.

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Prescribed Text Book(s):

1. Jay B Barney and William S. Hesterly. Strategic Management and Competitive Advantage:
Concepts and Cases. 5e.Pearson.
2. Hitt, Ireland, Hoskisson, Manikutty. Strategic Management-A south Indian Perspective. 9 th
Edition. CENAGE Learning.

Reference Book(s):

3. Jay B Barney (2007). Gaining and Sustaining Competitive Advantage. Pearson, Prentice Hall.
4. Michael E Porter. Competitive Advantage: Creating and Sustaining Superior Performance.
Simon and Shuster.

Course Evaluation:

S. Component Weightage Corresponding Learning Outcomes

No. (%)
1 Class Participation 10 1,2,3,4,5,6

2 Quiz 20 1,2,3,4,5,6

3 Group Projects 30 1,2,3,4,5,6

5 End-Semester 40 1,2,3,4,5,6
Examination
Total 100

Session wise Details: (topics, cases and readings)

Sessio Topic Readings & Cases

n No.
1 Course Overview and Requirements Chapter 1 from the text book
• What is Strategy?  Mintzberg, H. (1987), The
• What is strategic management Strategy Concept I: Five Ps for
process? Strategy, CMR 30(1): 11-24
• What is strategic performance?  Case Discussion: Starbucks
Coffee Company in the 21st
• What is Competitive Advantage?
Century
• Business Model Innovation  RAM - Why GM and Ford are
Worried about RAM
2 AFI Framework (Analysis, Formation, and
Implementation)
• Vision, Mission, and Strategic Goals
3 Business strategy. External analysis Chapter 2 from the text book

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 • How do external environmental forces  S'Well - How S'well Leveraged
impact sustainable competitive Starbucks to Become a Status
advantage? Symbol
• Threats and Opportunities
Tools: PESTEL Analysis
4 Tool: Five forces industry analysis and its Chapter 2 from the text book
implication Case Discussion: Soft Drink Industry
Beyond Meat - How The Beyond Meat
Burger is Taking Over the Beef Industry
5 Business strategy. Internal analysis Chapter 3 from the text book
• What effects do internal resources, Case Discussion: Lego, Sweetgreen - How
capabilities, and core competencies Sweetgreen Became a $1 Billion Salad
have on sustainable competitive Start-Up, Kohl’s - Can Kohl’s Survive?
advantage? Motorola - What Happened to Motorola?
• Strengths and Weaknesses
Tool: VRIO Analysis
6 Tool: Value Chain Analysis Chapter 3 from the text book
Case Discussion: Starbucks, Allbirds -
How Allbirds Became a $1.4 Billion
Sneaker Start-Up
7 Business Strategy Chapter 4 from the text book
• How should we compete? Case Discussion: Walmart and South
• Generic Strategies: Cost leadership West Airlines

8 Business Strategy Case Discussion: Apple

• Differentiation, or Integration,
Focused Strategies
9 Corporate strategy Chapter 6 from the text book
• Where should we compete (how Case Discussion: Disney
many businesses, which ones and
why so)?
• How does corporate strategy create
value?
• What is corporate strategy?
10 Synergy, tests of corporate strategy. Portfolio
management vs. corporate parenting
11 Vertical integration Chapter 6 from the text book
• What is vertical integration? Case: Pepsi and Coco-cola, Volkswagen -
• Value and reasons of vertical Why Volkswagen Is Betting On Electric
integration Vehicles

12 Horizontal integration and Diversification. Chapter 7 and 8 from the text book
• What is corporate diversification?
• Value and reasons of vertical
integration
13 Modes of expansion— strategic alliance Chapter 9 from the text book
Hewlett-Packard-Compaq: The Merger
• How do strategic alliance create
Decision, Domino's - How Domino's Won
value? India's Pizza Wars
• Alliance Threats
14 Mergers and Acquisitions Chapter 10 from the text book

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 • The value of merger and acquisitions
• Reasons of M &A
15 International Strategies Chapter 11 from the text book
• Value of International Strategies
• Types of International Strategies
16 Strategy implementation Chapter 11 from the Book Hitt et al. 2013
• Strategy and structure (text book 2)
17 Strategy implementation Chapter 12 from the Book Hitt et al. 2013
• Control systems and incentives (text book 2)
• Leadership, strategy and
implementation
18 Special topics in Strategy Chapter 10 from the Book Hitt et al. 2013
• How should we organize to put the (text book 2)
formulated strategy into practice?
• What type of corporate governance is
most effective?
• What is Corporate Social
responsibility and Stakeholder’s
perspective?
• How do we anchor strategic decisions
in business ethics?
19 Project Presentations

20 Project Presentations

Video Cases

Below is a list of the video cases we will use for class discussions

Video Title Link

S'Well - How S'well Leveraged Starbucks to Become a Status https://www.youtube.com/watch?
Symbol v=UOsGWxUr1vI&ab_channel=CNBCMakeIt.
Beyond Meat - How The Beyond Meat Burger is Taking https://www.youtube.com/watch?
Over the Beef Industry v=PqVBInU0A8s&ab_channel=CNBCMakeIt.
RAM - Why GM and Ford are Worried about RAM https://www.youtube.com/watch?
v=RQfVd1Ph6xE&list=PLDt0J62yU45t19qLFOrci9wkCR7s
FSwr7&index=9&ab_channel=CNBC
Sweetgreen - How Sweetgreen Became a $1 Billion Salad https://www.youtube.com/watch?
Start-Up v=vfDJQ_yJ6QA&ab_channel=CNBCMakeIt.
Kohl’s - Can Kohl’s Survive? https://www.youtube.com/watch?
v=mGZDSjALIwU&list=PLDt0J62yU45t19qLFOrci9wkCR
7sFSwr7&ab_channel=CNBC
Motorola - What Happened to Motorola? https://www.youtube.com/watch?
v=_N6MFQyRq_c&list=PLDt0J62yU45t19qLFOrci9wkCR7
sFSwr7&index=6&ab_channel=CNBC
Allbirds - How Allbirds Became a $1.4 Billion Sneaker Start- https://www.youtube.com/watch?
Up v=NPBsWxGxtSo&ab_channel=CNBCMakeIt.
Volkswagen - Why Volkswagen Is Betting On Electric https://www.youtube.com/watch?
Vehicles v=zkqt4cQpVx4&list=PLDt0J62yU45t19qLFOrci9wkCR7sF
Swr7&index=16&ab_channel=CNBC
Domino's - How Domino's Won India's Pizza Wars https://www.youtube.com/watch?
v=EK6_QNZa4S4&list=PLDt0J62yU45t19qLFOrci9wkCR7
sFSwr7&index=2&ab_channel=CNBC
Square - How Square Makes Money https://www.youtube.com/watch?
v=0Is_gfHTWM0&list=PLDt0J62yU45t19qLFOrci9wkCR7

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 sFSwr7&index=13&ab_channel=CNBC
Dell - What Happened to Dell? https://www.youtube.com/watch?
v=w3Td67CdWNI&list=PLDt0J62yU45t19qLFOrci9wkCR7
sFSwr7&index=26&ab_channel=CNBC

S. NO Student Name and Roll No

1 S'Well - How S'well Leveraged

Starbucks to Become a Status Symbol
2 Soft Drink Industry

3 Beyond Meat - How The Beyond Meat

Burger is Taking Over the Beef
Industry
4 Lego

5 Sweetgreen - How Sweetgreen

Became a $1 Billion Salad Start-Up,
Kohl’s - Can Kohl’s Survive?
6 Motorola - What Happened to
Motorola?
7 Starbucks, Allbirds - How Allbirds
Became a $1.4 Billion Sneaker Start-
Up

8 RAM - Why GM and Ford are

Worried about RAM
9 Disney

10 Pepsi and Coco-cola, Volkswagen -

Why Volkswagen Is Betting On
Electric Vehicles
11 Domino's - How Domino's Won
India's Pizza Wars

Appendix A: Guide to Case Analysis

 Harvard pioneered in using case based approach to teaching strategies

Below are the links to YouTube videos from Harvard Business School on case based approach
You will see various professors and students sharing their opinions
https://www.youtube.com/watch?v=Y4j25Pj4JyQ
https://www.youtube.com/watch?v=JJ7aVrtTbg0

 Both instructors and students come prepared

 Students often form Learning Teams
 Before coming to the class students discuss within their teams and before discussing within
the team, they prepare individually
 Discussions in the class often involve staking your own point of view, push back, being open
to other’s point of views

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 A Case tells the story of a company facing strategic challenge
o Generally start with an overview of the firm’s performance over the years, and
description of the challenges need to be addressed
o Various sections that follow present history of the Industry, Company, Competitors
leading up to current challenges
o Presents additional information in exhibits for aiding the analysis to support
identification of challenges and solutions.
o Often written from a point of view of a decision maker—usually the CEO or a general
manager responsible for the business performance (very different from being
responsible for a project or a function).
o Collectively offer great perspective across industries and situations, provide
opportunity to learn how and where tools apply.
 First a quick reading
o skim to get the feel of the land
o Key events, Sense of relative performance over time, Principal actors
 Detailed reading and Analysis
o Diagnosis: Read to identify strategic challenges (gaining and sustaining competitive
advantage).Build a working hypotheses
o Use Relevant Analysis Framework– External Analysis, Internal Analysis,
Business/Corporate/International Strategy
o Use Relevant Analysis: External Analysis, Financial Analysis (relevant ratios),
Common size Analysis (over time/ across firms), and Break-even analysis. Learn/use
spread sheet modeling
 Examine Qualitative Information
 Refine your working hypotheses on strategic challenges in the light of analysis and evidence
from the case
 Generate alternatives and recommend one supported by analysis, facts, and theories
 Test your Strategy: look for holes in your arguments, recognize assumptions, refine
challenges and solution
 Develop good attitude and be ready to discuss
 Take personal initiative– prepare before you engage your group
 Be curious– it is rare that you would get such a rich information and learn about an industry
and a company
 Take risk: Develop your ideas. They may not be right/robust … Experience comes from Bad
judgment! – Banker Walter Wriston
 Be patient/Stay at it: Like real life case studies are messy. Once you figure out a
challenge/solution. Additional information throws up others
 Orientation for community and discussions– Share your point of view and your confusions
 Trust in the process– learning often accumulates over time
 Immediately after the class right down what you learnt and discovered
 Periodically review notes and reflect

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