BUSINESS STRATEGY

Course objectives are: a) provide theoretical and conceptual instrumentation required for the understanding and the definition of the corporate strategies adopted by the firms, b) describe the critical success factors of external growth operations (M & A and alliances) and divestment, c) provide complete framework of analysis that takes into account the optimization choices in portfolio management implemented by multibusiness firms and their strategic and financial reflections, d) active participation in a business game, e) ability to apply theories to business cases.

Business Economics and Management, Industrial Economy, Corporate Finance.

Upon completing this course, students should be able to complete the full set of capabilities required by the Dublin’s descriptors, specifically: - Knowledge and understanding: comprehension of the complex strategic dynamics of the company, through the acquisition of specific knowledge, tools and new angles of observation; Students will learn the methodologies and tools useful to identify the companies’ scope of action, in vertical, horizontal and international direction; - Applying knowledge and understanding: ability to interpret multiple managerial and corporate issues, managing to apply the knowledge acquired, outlining effective strategic models in different scenarios and areas; - Making judgements: ability and autonomy of judgment to critically read the competitive scenario, from the industry to the ecosystem in which it operates; - Communication competences: enhancement of communication skills and ability to clearly synthesize, argue and transmit the conclusions driven from the analysis of any business case in a managerial and strategic scope; - Lifelong learning skills: ability to identify suitable materials, sources, and data to strengthen their future knowledge and acquire new competences.

Corporate Strategy fundamentals. Back to basics: Industry, Resources and competences, Managerial Innovation. Institution-based rents and ESG. Growth strategies: Diversification strategy. Diversified company management: horizontal strategies and interrelations. Portfolio Matrix. Vertical integration. Collaboration strategy: Build or Borrow? Firm restructuring and divestment strategies. Implementation, control and value in corporate strategy: collaboration strategies. Corporate Governance impact. The Executive Compensation. Strategic control and measurement of business strategy. Exercises, Business Presentations, Business Case, Business Game Simulation.

Fontana F., Boccardelli P. (2015) “Corporate Strategy, Una prospettiva organizzativa e finanziaria per la crescita”, ed. HOEPLI. Additional material provided by the lecturer and published on Moodle.

Frontal teaching - Individual exercises - Team works on a business case – Business Game - Research project – Business Presentations .

The final grade for attendees consists of: 1) Final written exam, 60 minutes (30%) 2) Individual assignment (25%) 3) Business Game in team (20%) 4) Enquiry Based project in team (25%). The grade of the BSG is valid for the entire academic year and, once refused, the exam will be taken in non-attending mode. The final grade for non-attendees consists of: Final written exam, 120 minutes (100%).

No merit criterion is required for thesis assignment (mean, 'grades, language skills, etc.). The only criterion followed is the assignments chronology. A proposal must be presented in order to indicate the central idea and the topic that will be addressed in the thesis. Students have to provide a two or three pages word document, including bibliography, which describe in summary: - Reference literature: generical sources (e.g. Google), industrial sources (e.g. Il sole 24 ore, The economist, Il mondo) and related scientific literature ((http://www.luiss.it/biblioteca/banche_dati / index. php). - the research question. It’s a question of one or two lines that exactly identifies the problem that the thesis aims to solve. - Students have to argument the importance and the need to give a scientific answer to identified question, to exclude irrelevant unanswered questions. The research question can be considered significant from the theoretical point of view (since defines a logical step missing in the understanding of some processes) or from an empirical one (as it seeks to describe a phenomenon not fully understood), or by both. - Methodology to be followed: Case studies, interviews, data collection through questionnaires or through pre-compiled databases.