Dominican University

School of Business

BAD 490: Business Policies

Spring 2003

Instructor:	Coe Rost
Phone:	312.218.2230
Email:	coe_rost@yahoo.com
Office Hours:	By Appointment
Prerequisites:	BAD 250, 345, and 350

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This BAD 490 Business Policies session is based on the syllabus developed by Professor Steve Harrington. The course content and materials are the same as in the daytime session.

The differences in this session are: 1) the professor (a short bio is included below); 2) modifications to the course calendar to accommodate the one session per week schedule of this class, and; 3) guest lecturers and team presentations have been removed because the class size is anticipated to be small.

Course Description

BAD 490 represents a challenging and exciting capstone course within the undergraduate business curriculum. The course emphasizes that an organization’s sustained success depends on sound, astute strategy development and an effective system for executing strategic plans. Unlike other business courses that focus on a specific functional area (accounting, marketing, finance, production) or a well-defined body of knowledge (economics, statistics, business law), BAD 490 is a “big picture” course. It challenges students to reach back and use concepts from previous courses in an integrated fashion to evaluate an organization’s strategic position and its long-term prospects for success.

We begin with a foundational review of organizational governance and social responsibility issues. We proceed by examining various environmental scanning techniques used by organizations to identify external and internal factors that shape the quality of their strategic analysis. We broaden our appreciation for the importance of formulating, implementing, and evaluating organizational strategy by reviewing popular competitive, corporate, and international strategies, and by analyzing the importance of organizational structure, leadership, culture, and innovation. We conclude our work by focusing on particular strategic challenges faced by entrepreneurial and not-for-profit organizations.

Students will reinforce their understanding of course concepts through case analysis, textbook and periodical readings, class discussions, in-class exercises, guest lectures, and technology projects.

Course Objectives

• To develop your capacity to think strategically about an organization, its present position, its long-term direction, its resources and competitive abilities, and its opportunities for future success.
• To improve your strategic analysis skills across a variety of industries and competitive situations, with an emphasis on the challenges of increasingly global and technologically advanced environments.
• To acquaint you with the various managerial challenges associated with formulating, implementing, and assessing organizational strategies.
• To develop your ability to identify central issues in complex, comprehensive cases, to suggest alternative courses of action, and to present well-supported recommendations for future action.
• To develop your ability to apply knowledge gained in previous course material to strategic analysis.
• To develop your managerial judgment skill, particularly as it relates to assessing business risk.
• To evaluate strategic issues associated with not-for-profit and entrepreneurial organizations.
• To improve your ability to work effectively within a team environment.

Consistent with departmental goals established by the School of Business, students will also enhance their:

• appreciation for ethical and socially responsible behavior within the workplace (G1)
• ability to communicate effectively in written and verbal formats (G2)
• ability to utilize technology and electronic learning to address business applications (G3)
• quantitative, analytical and critical thinking skills (G4)
• understanding for global issues faced by organizations (G5)

Note: References to the School of Business goals (G1-G5) are bolded in the course calendar section of the syllabus.

About the Professor

Coe Rost is an Adjunct Faculty member at the School of Business and this will be his first semester at Dominican University. He has an M.B.A. from Yale University with a concentration in Finance and Strategy and received a B.A. in Economics from Northwestern University.

Professor Rost has over 20 years of experience in many roles: account and project management, strategy, business analysis, business process, technology and application architecture, and technology delivery. He has a broad range of experience ranging from creative, multi-media projects to fast paced, Wall Street financial applications to establishing business presences on the Web through E-Commerce enablers.

Professor Rost has staffed and managed large multi-project development environments and has developed a high level expertise in communications, analysis, and people development. The advanced skills of a senior level practitioner will provide managers with training that they will find both practical and career enhancing.

Course Materials

Required:	Wheelen and Hunger, Strategic Management and Business Policy, 8^th Edition, Prentice-Hall, 2002.
	Custom Casebook for “Business Policies – BAD 490”, Harvard Business School Publishing, 2002.
	Smith and Golden, Airline: A Strategic Management Simulation, 4^th Edition, Irwin, Prentice-Hall, 2002.
Optional:	Wall Street Journal Subscription

Course Requirements	Points
Group Computer Simulation	200
Class Participation	150
Article/Chapter Assignments	100
Case Assignments	100
Guest Lecture Assignments	-
ETS Assignments	100
Major Field Examination	25
Instructor Conferences	25
Mid-term/Final Surveys	25
Book Review (Optional)	100
Total	825

Grading	% of 725 points
A	94-100
A-	90-93.9
B+	87-89.9
B	83-86.9
B-	80-82.9
C+	77-77.9
C	73-76.9
C-	70-72.9
D	60-69.9
F	Below 60

Group Computer Simulation

The simulation game represents the single largest component of your final grade. We will spend at least two class periods reviewing the requirements of the project. Three-person teams will be assigned during the first week of class. Briefly, after developing a strategic plan, each team will be required to submit eight quarterly “decisions” over the course of the semester. You will be graded based on a scoring algorithm I will review in class. The algorithm will evaluate your performance using the following statistics:

1. Quality Index
2. Reliability Index
3. Social Responsibility Expenditures
4. Passenger Load Factor
5. Market Share (RPMs)
6. Return on Sales
7. Return on Assets
8. Return on Equity
9. Net Income/Earnings per Share
10. Stock Price
11. Liquidity (cash balance/current ratio)
12. Employee Turnover

The team with the highest score will earn 200 points. The scores of all other teams will be based on performance relative to the top team.

Class Participation

Each student is expected to be an active participant in daily class discussions. Your class participation grade will reflect the quality and consistency of your contributions. Mere attendance does not represent participation; frequent absences will severely impact your participation grade.

Article/Chapter Assignments

Article/Chapter assignments will be collected on the thirteen due dates specified in the course calendar. The assignments will be posted on Blackboard approximately one week prior to the due date. Each assignment is worth ten points. You will receive credit for your highest ten assignments. No late assignments will be accepted. If you need to miss class on a particular due date, you will need to submit the assignment prior to the due date.

Listed below is a chronological list of the assigned articles you can access on electronic reserve at http://domweb.dom.edu/library/library/Pages/ElectronicReserves.htm:

1. J. Collins and J. Porras, “Building Your Company’s Vision,” Harvard Business Review (September – October 1996), pp. 65 – 77.

2. L. Paine, “Managing for Organizational Integrity,” Harvard Business Review (March – April 1994), pp. 106 – 117.

3. A. Langley, “Between ‘Paralysis by Analysis’ and ‘Extinction by Instinct’,” Sloan Management Review (Spring 1995), pp. 63 – 76.

4. G. Stalk, Jr. and P. Evans-Clark, “Competing on Capabilities: The New Rules of Corporate Strategy,” Harvard Business Review (March – April 1992), pp. 54 – 65.

5. D. Yoffie and M. Cusumano, “Judo Strategy,” Harvard Business Review (January – February 1999), pp. 70 – 81.

6. R. Kanter and T. Dretler, “Global Strategy and Its Impact on Local Operations: Lessons from Gillette Singapore,” Academy of Management Executive (November 1998), pp. 60 – 68.

7. A. Majchrzak and Q. Wang, “Breaking the Functional Mind-Set in Process Organizations,” Harvard Business Review (September – October 1996), pp. 92 – 99.

8. J. Pfeffer and C. Tromley, “Producing Sustainable Competitive Advantage Through the Effective Management of People,” Academy of Management Executive (February 1995), pp. 55 – 72.

9. D. Goleman, “What Makes a Leader?” Harvard Business Review (November – December 1998), pp. 93 – 103.

10. R. Kaplan and D. Norton, “Using the Balanced Scorecard as a Strategic Management System,” Harvard Business Review (January – February 1996), pp. 75 – 85.

11. P. Evans and T. Wurster, “Getting Real About Virtual Commerce,” Harvard Business Review (November – December 1999), pp 84 – 94.

12. J. McMullen and J. Decastro, “Entrepreneurial Decision Making and Risk Assessment in the Midst of Environmental Uncertainty: The Everest Disaster,” Academy of Management Proceedings (2000), pp. 1 – 6.

13. M. Stone, B. Bigelow, and W. Crittenden, “Research on Strategic Management in Nonprofit Organizations,” Administration & Society (July 1999), pp. 378 – 423.

Case Assignments

Case assignments will be collected on the six due dates specified in the course calendar. The assignments will be posted on Blackboard approximately one week prior to the due date. Each assignment is worth twenty points. You will receive credit for your highest five assignments. No late assignments will be accepted. If you need to miss class on a particular due date, you will need to submit the assignment prior to the due date.

Instructor Conferences

Twice during the semester, I will meet with students individually to review performance and to discuss any specific concerns about the course. These conferences should in no way discourage students from contacting me at any time during the semester with questions or concerns.

Mid-term/Final Surveys

Twice during the semester, I will ask you to complete a survey regarding your satisfaction with the course and an assessment of your performance. These surveys are in addition to the School of Business and University surveys you receive in business course each semester.

Book Review

By semester’s end, some of you will have missed various assignments and/or will feel dissatisfied with your cumulative performance. As a means of improving your score, each student will have the option of submitting a written book review, no less than 15 pages in length. Please secure my approval for the book you wish to review prior to completing this assignment.

Blackboard

All students should register for the course at http://blackboard.dom.edu to access course information and assignments and to facilitate email communication between the instructor and the students.

Recommended Reading

In addition to your regularly reading of Business Week, Fortune, Forbes, The Wall Street Journal, and the Harvard Business Review, you are encouraged to read some of the following books.

1. Dan Baum, Citizen Coors: An American Dynasty (New York: William Morrow, 2000).
2. James F. Moore, The Death of Competition (New York: Harper Business, 1996).
3. Henry Mintzberg, Bruce Ahlstrand, and Joseph Lampel, Strategy Safari: A Guided Tour Through the Wilds of Strategic Management (New York: The Free Press, 1998).
4. Shoan L. Brown and Kathleen M. Eisenhardt, Competing on the Edge: Strategy as Structured Chaos (Boston: Harvard Business School Press, 1998).
5. Gary Hamel, Leading the Revolution (Boston: Harvard Business School Press, 2000).
6. Geoffrey A. Moore, Living on the Fault Line (New York: Harper Business 2000).
7. Randall E. Stross, eBoys: The First Inside Account of Venture Capitalists at Work (New York: Random House / Crown Business 2000).
8. Stephen P. Bradley and Richard L. Nolan, Editors, Sense & Respond: Capturing alue in the Network Era (Boston: Harvard Business School Press, 1998).
9. Michael Hammer and James Champy, Reengineering the Corporation (New York: Harper Business, 1993).
10. James C. Collins and Jerry I. Porras, Built to Last (New York: Harper Business, 1994).
11. Thomas A. Stewart, Intellectual Capital (New York: Doubleday / Currency, 1997).
12. Richard D’Aveni, Hypercompetition (New York: The Free Press, 1994).
13. Andrew S. Grove, Only the Paranoid Survive: How to Exploit the Crisis Points that Challenge Every Company and Career (New York: Doubleday / Currency, 1996).
14. Kenneth P. Blanchard, P. Zigarmi, and D. Zigarmi, Leadership and the One-Minute Manager (New York: William Morrow, 1985).
15. Raymond E. Miles and Charles C. Snow, Fit, Failure and the Hall of Fame: How Companies Succeed or Fail (New York: The Free Press, 1994).
16. Michael A. Cusamano and David B. Yoffie, Competing on Internet Time: Lessons form Netscape and Its Battle with Microsoft (New York: The Free Press, 1998).
17. Michael Dell (with Catherine Fredman), Direct from Dell: Strategies that Revolutionized an Industry (New York: Harper Business, 1999).

Other Requests

· While I do not specifically grade on attendance, please make every effort to attend each class and to actively participate. Your involvement will assist me in assessing your understanding of course material.

· Please demonstrate your professionalism by arriving to class on time, by respecting the comments and questions of your classmates, and by silencing all cellular phones and pagers.

· Please bring all relevant material to each class.

· Please feel free to contact me at any other time with questions regarding course material.

· All written assignments will be evaluated on content and writing quality. Please take advantage of the Dominican University Writing Center in the Library if you need assistance with your writing.

· Please allow me to make minor adjustments to the syllabus, as circumstances require.

Course Calendar

Date	Topic	Assignment
1/20	Introduction to Course and Syllabus Review Introduction to Strategic Management Strategic Simulation Introduction	Read Simulation Manual
1/27	Introduction to Strategic Management	Read Wheelen Chap 1 Read Article #1; Simulation Decision #1; Case Assignment #1: Snapple
2/3	Corporate Governance and Social Responsibility	Read Wheelen Chapter 2; Read Article #2; Article/Chapter Assignment #2; Simulation Decision #2; ETS Assignment #1
2/10	The External Industry Analysis	Read Wheelen Chapter 3; Read Article #3; Article/Chapter Assignment #3; Simulation Decision #3; ETS Assignment #2 Case Assignment #2: Airborne Express
2/17	The Internal Organizational Analysis	Read Wheelen Chapter 4; Read Article #4; Article/Chapter Assignment #4; ETS Assignment #3; Simulation Decision #4
2/24	Competitive Strategies	Read Wheelen Chapter 5; Read Article #5; Article/Chapter Assignment #5; Simulation Decision #5; ETS Assignment #4 Case Assignment #3: Southwest Airlines
3/3	Mid-semester Break
3/10	Corporate and International Strategies	Read Wheelen Chapter 6; Read Article #6; Article/Chapter Assignment #6; Simulation Decision #6; ETS Assignment #5
3/17	Formulating Strategy: Functional Issues	Read Wheelen Chapter 7; Read Article #7; Article/Chapter Assignment #7; Simulation Decision #6; ETS Assignment #6 Case Assignment #4: Morgan Stanley
3/24	Implementing Strategy: Organizational Structure	Read Wheelen Chapter 8; Read Article #8; Article/Chapter Assignment #8;; ETS Assignment #8; Simulation Decision #7
3/31	Implementing Strategy: Leadership and Culture	Read Wheelen Chapter 9; Read Article #9; Article/Chapter Assignment #9; Simulation Decision #8; ETS Assignment #9; Case Assignment #5: Harley-Davidson
4/7	Assessing Strategy: Evaluation and Control	Read Wheelen Chapter 10; Read Article #10; Article/Chapter Assignment #10; ETS Assignment #10
4/14	Technology and Innovation Issues	Read Wheelen Chapter 11; Read Article #11; Article/Chapter Assignment #11 Case Assignment #: SADAFCO Major Field Examination
4/21	Strategic Issues: Entrepreneurial Organizations Strategic Issues: Not-for-Profit Organizations	Read Wheelen Chapter 12; Read Article #12; Read Wheelen Chapter 13; Read Article #13; Case Assignment #6: SADAFCO
5/5	Final Examination Week