Strategy
Code
1207
Academic unit
null
Department
null
Credits
7,5
Teacher in charge
Vasco Santos
Teaching language
English
Objectives
This is a first course in Strategy. It aims at:
(i) introducing many of the main topics in Strategy;
(ii) training the student to think strategically when analyzing a firm´s behavior as it competes in the marketplace.
Prerequisites
Compulsory pre-requisites:
- 1102. Microeconomics
- 1200. Principles of Management
Subject matter
Economies of scale and scope, agency and coordination, competitors and competition, strategic commitment, dynamics of pricing rivalry, entry and exit, industry analysis, strategic positioning for competitive advantage, sustaining competitive advantage, the origins of competitive advantage: innovation, evolution, and the environment.
These topics correspond to chapters 2, 3, 8, 9, 10, 11, 12, 13, 14, and 15 of Besanko et al. (2010). The last chapters will only be covered if time allows.
Bibliography
Besanko, David, David Dranove, Scott Schaefer, and Mark Shanley, 2010, The Economics of Strategy, 5th edition, New York: John Wiley and Sons.
Teaching method
The best way to learn Strategy is by solving problems and case studies after learning the theory. By doing so you:
(i) better understand the theory
(ii) become adept at applying it. Solving the problem sets is an integral part of this effort.
Case studies give you the flavor of the real-life situations that can be understood strategically.
Evaluation method
Three problem sets will be distributed during the semester and you will have about seven days to solve them individually. Problem sets will not be accepted past their due date. Each student will have only one of the three problem sets graded. The problem set to be graded will be randomly selected. This selection will take place only after the third problem set is handed in.
Groups of four students must be formed in order to solve a case study. You can form your own group until Friday, September 28, after which you will be randomly assigned to a group. Group members do not need to all belong to the same practical class. Your group will have about two weeks to solve the case study. Case studies will not be accepted past their due date. The final grade will equal the weighted average of the grades obtained in a case study, the graded problem set, a midterm and a final exam according to the following weights:
-Case study 10%
-Problem set. 5%
-Midterm 35%
-Final 50%
However, a passing grade will only be awarded if the weighted average of the midterm (M) and final (F) grades equals or exceeds 9.5 ( 0:35 M,0:5 F 0:85 9:5).