CORPORATE STRATEGY

This course zooms in on competitive and corporate strategy. Competitive strategy mainly concerns how to create and maintain a competitive advantage in a (single) product market by delivering a unique value proposition to generate above-average returns. Corporate strategy, on the other hand, is the broadest level of strategy and builds on higher-level competitive strategy. The focus, here, is on the configuration and coordination of multi-business (multi-market) activities aiming to create value beyond the value generated by all individual business units combined. Put differently, it is about creating and maintaining corporate advantage by selecting and managing a set of different businesses competing in different product markets. Corporate strategy, however, is relevant for all firms, including the smallest undiversified firms. For instance, single-business firms have made the (corporate) decision to not engage in any other markets, and instead to focus on a single product market. Despite their clear difference, there is an overlap between competitive and corporate strategies. For instance, corporate advantages are typically realized at the business level – performance of individual business units. In this course, we cover both, as well as, their interconnection by looking at how strategy is being formulated and implemented. In so doing, we aim to provide an understanding of relevant competitive and corporate strategy-related issues. The reading list provides a foundation for tools and techniques used to formulate, implement, and evaluate competitive and corporate strategies. The various analytical frameworks covered in this course will equip you with the necessary tool kit to identify sources of competitive and corporate advantage. By examining what makes some strategies strong and viable, and others weak and vulnerable, you will enhance your ability to make educated judgement of how certain changes impact opportunities for generating competitive and corporate advantage. Translating theoretical concepts and frameworks into practice, you will further develop your strategic thinking, communication, and problem-solving skills.

Basic knowledge of management and strategy concepts and theories are advantageous. Keen interest in current business topics is a requirement.

Upon completing this course, you should be able to complete the full set of capabilities required by the Dublin’s descriptors, specifically: Knowledge and understanding: Students will be able to critically reflect on and compare different theories and frameworks in relation to competitive and corporate strategy Applying knowledge and understanding: Students will be able to apply concepts, frameworks, and analytical tools to identify and address competitive and corporate strategy-related issues in real-life cases across industries Making judgement: Students will be able to analyze competitive and corporate strategies and provide recommendations for enhancing competitive and corporate advantages . Students will be able to assess the impact of changes in, including competitive positioning, business model design, and corporate composition, on competitive and corporate advantage. Students will be able to the most suitable option with regard organizational structure, organizational control mechanism or strategic renewal trajectory in a given case, motivate and clearly communicate why. Students will be able to identify realistic options for company expansions by means of horizontal diversification or vertical integration, and motivate your selection Communication: Students will be able to develop, employ, and clearly communicate strategic insights Lifelong learning skills: The knowledge acquired during the course will give to students the chance to learn how to identify suitable materials, sources, and data to strengthen their future knowledge and acquire new competences.

This course addresses the topics of competitive and corporate strategy along the following: how firms can remain relevant and competitive, specifically in dynamic and rapidly evolving industries; how to innovate a firm’s business model, how firms can pursue different levels and types of diversification, their implications, why firms focus or diversify, how to create more value than the sum of an individual business units, how to organize and manage interconnection between different businesses, how to balance exploitation versus exploration, and how corporate structure and culture can support competitive and corporate strategies.

Strategic Management, 5th Edition, by Frank Rothaermel ISBN10: 126026128X ISBN13: 9781260261288 A case pack will be made available at the beginning of the course. Students are responsible for obtaining the book and associated course pack in advance. Each week we will discuss different chapters & cases. Additional papers may be assigned to supplement the course book based on topic and relevance.

Flipped classroom Group works Presentations Business Game Simulation

Final grade consists of: • Written Exam: 20% • Class Participation: 20% • Business Game Simulation: 40% • Enquiry Based Project: 20% For non-attending: exam = 100% Exam The written exam is open-book and consists of two open-ended questions for attending students (1h) and four for non-attending students (2h), where each question carries equal weight. You will be given a short case and will be asked to apply the skills and knowledge acquired during the course to answer the questions. Questions pertaining to strategy advice will be evaluated based on: a) the degree to which the company has the right resources and capabilities to execute the strategy, or to acquire the necessary skills and capabilities for this purpose, b) the likelihood of the suggested strategy to lead to (sustainable) competitive advantage. The format of the exam remains the same for online and in presence exams. Class Participation Participation consists of two components: 50% mini cases and discussions (group grade), and 50% peer evaluation (individual). Instructions on the peer review process will be provided in due time. Group work Students will be randomly allocated into groups of 4-5 students within the first week of class. You will be working in the same groups for the business game and the enquiry-based project. Enquiry-based project You will be introduced to a real or fictional company which will be your client. As a group of consultants, your task is to analyze your client’s problem(s) and to come up with recommendations. Evaluation. The project will be evaluated using the following criteria: a) clarity of the presentation (e.g., clear structure, clear messages, no typos), b) quality and rigor of the analysis (e.g., analysis based on an appropriate use of theories, rigorous methods, complete data), c) creativity and relevance of the recommendations (e.g., they take into account and address specific issues related to the company and/or its environment). Business Game Together with your team mates you will assume the roles of the top management team of a telecommunications company which you will be managing for a period of 10 years. You will have to decide on a CEO and fill other relevant top management positions in your company. Prior to the actual game, we will do two practice rounds which will allow you to familiarize yourself with the process. Before playing the first actual round of the game, you will have to submit a two-page document outlining your strategy, which you will then be presenting to the rest of the class in week 4. In the last week you will once again present your firm’s performance to the class. This presentation is based on your reflection report, a 3-4-page document in which you reflect on how you implemented the strategy you set in the beginning, how you adjusted your strategy throughout the course of the game, and how these actions have manifested themselves in performance outcomes. You may update your strategy throughout the game but will have to justify it at the ‘shareholders meetings’. The best performing group at the end of round 10 of the actual game, assuming that the firm will be still operational in subsequent rounds, will receive 30/30. The next best performing group 29.5/30, etc. In case of a tie, both groups receive the same grade.

Students needs to submit a research proposal of no more than three pages, including bibliography, clearly articulating the central idea/topic that the thesis will explore. No merit criterion is required for thesis assignment (mean, 'grades, language skills, etc.), except for the quality and relevance of the research proposal. A research proposal consists of: Research question (what will be studied) Short literature review (what stream of literature does this concern, what do we know, what do we not know, and why do we need this study) Research design & methodology (how will this research be carried out, what sources, methods) Potential contributions (what will we have learned).

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