Strategy
Code
1207
Academic unit
null
Department
null
Credits
7,5
Teacher in charge
Afonso Almeida Costa
Teaching language
English
Objectives
Why are some firms more successful than others ? The objective of this course is to answer this important (and complex) question. To do so, we will seek to identify the main factors driving persistent firm performance differences, by using a diverse set of analytical tools and concepts. We will focus on important factors such as market size, industry structure, and competition; the ways in which firms can build a competitive advantage by creating more value than their competitors; how firms can sustain a competitive advantage over time; the role of corporate strategy and the definition of firm boundaries; and the importance of aligning structure and systems, and culture and values for successful strategy execution.
The essence of strategy analysis is the skilful application of tools and concepts to specific business situations. Learning the tools and concepts introduced in the theoretical sessions and practicing their application is thus critical and constitutes the basis of this course.
Prerequisites
Compulsory pre-requisites:
- 1102. Microeconomics
- 1200. Principles of Management
Subject matter
0. Introduction.
1. Competitive strategy:
1.1. Microeconomic models of strategic interaction: Capacity and price competition; Competitive Dynamics.
1.2. Market size, industry structure, and competition.
1.3. Creating and sustaining competitive advantage: Value creation and competitive advantage; Strategies for building competitive advantage; Value innovation through Blue Ocean Strategy; Sustainability of competitive advantage: Mechanisms; Competing in the new economy: Creating and sustaining competitive advantage with network externalities.
2. Corporate strategy: Firm scope; To grow or not to grow? How to grow?; Vertical integration.
3. Strategy execution: Alignment: Structure and systems, culture and values.
4. Strategy in action: Special session: "Case presentation by The Boston Consulting Group".
5. Review
Bibliography
Besanko, David, David Dranove, Scott Schaefer e Mark Shanley, 2013, The Economics of Strategy, sixth edition, New York: John Wiley and Sons.
Teaching method
Evaluation method
The final exam is mandatory and must cover the entire span of the course. Its weight in the final grade can be between 30 to 70%. The remainder of the evaluation can consist of class participation, midterm exams, in class tests, etc. Overall, written in class assessment (final exam, midterm) must have a weight of at least 50%.
The assessment is based on the final exam (40%) and on components done over the course of the semester. The latter components are: a midterm exam (20%), a case analysis write-up (20%) and its presentation (15%), and individual participation by students in class discussions (5%).
Important note 1: Students are required to have a grade of at least 9.5 (out of 20) in the final exam to pass the whole course (regardless of their continuous assessment grades).
Important note 2: The weighting of the final course grade presented above (final exam plus continuous assessment) will be applied to the first final exam taken, be it during the regular exam period or during the resit exam period. However, students who wish to void their continuous assessment grades in order to take the resit exam with a 100 percent weight must: either (i) send an email to the teaching assistant stating so until June 11 (the easiest solution); or (ii) come to the regular exam (on June 12) and deliver a blank answer sheet. No exceptions will be made to this rule.
Important note 3: Whereas the midterm exam will only cover the first half of the course, the final exam will cover the entire span of the course. High- level (not detailed) questions about the case studies discussed during case sessions may be included in the exams. The special session with The Boston Consulting Group is not exam content.
Important note 4: The midterm exam and the final exam are closed-book exams, but students are allowed to bring a two-sided A4 cheat sheet and a calculator with them. By the end of any midterm or final exam, students must deliver their answer sheets, their cheat sheets, and any draft paper (draft paper will be provided).
Important note 5: Plagiarism is considered a very serious offense by the school. Accordingly, any detected instances of plagiarism be those in the midterm and final exams, or in the case analysis write-ups and presentations will be severely punished.
Regular exam period:
Continuous assessment weights: Midterm exam (20%); case analysis write-up (20%) and its presentation (15%); individual participation by students in class discussions (5%).
Final exam weight: 40%
Resit exam period:
Continuous assessment weights: Same weights as in the regular exam period by default; 0% if either (i) the student is retaking the exam after not passing in the regular exam period, or (ii) the student voided continuous assessment grades (See IMPORTANT NOTE 2).
Final exam weight: 40% by default; 100% if either (i) the student is retaking the exam after not passing in the regular exam period, or (ii) the student voided continuous assessment grades (See IMPORTANT NOTE 2).
Grade improvement in the regular or resit exam period:
Continuous assessment weights: 0% Final exam weight: 100%