Syllabus for BMGT495 - Strategic Management
Instructor: Carmela Lupica
(Intended as a final, capstone course to be taken in a student's last 30 semester hours.) Prerequisites: BMGT 340, BMGT 364, and MRKT 310. An overview of general management and the continuous, systematic process of managerial planning, including environmental scanning and the development of plans and strategies to gain competitive advantage. Tactical and strategic management issues are highlighted by means of case studies, projects, and discussion. Access to spreadsheet software is recommended to analyze case studies and develop strategic planning information, charts, and graphs. Students may receive credit for only one of the following courses: BMGT 495, HMGT 430, MGMT 495, or TMGT 380.
Prerequisites: BMGT 340 and 364 and MRKT 310 or equivalent
Description: This is a capstone course, to be taken in the last 30 semester hours. The course presents an overview of general management and the
continuous, systematic process of managerial strategic planning, including environmental scanning and the development of strategies to gain competitive advantage. Strategic and tactical management issues are highlighted by means of case studies, projects and discussion. Access to spreadsheet software is recommended to analyze case studies and develop strategic planning information, charts, and graphs.
Strategic management is a “big picture” course that focuses both on the process of
strategic thinking and the content of visions, mission statements, environmental assessment, strategy formulation, strategy implementation, and control and evaluation methods. It cuts across the spectrum of business and management. The center of attention is the whole organization -- its business, industry and competitive environment, its long-term direction and strategy, its resources and capabilities, and its prospects for success. Course Goals/Objectives
After completing this course, you, the student should be able to:
1. Develop your capacity to think strategically about a company, its present business position, its long-tern direction, its resources and competitive capabilities, and its opportunities for gaining sustainable advantage.
2. Build your skills in conducting strategic analysis in a variety of industries and situations, and to provide you with an understanding of the challenges of a global market environment.
3. Acquaint you with the managerial tasks associated with implementing strategies and the range of actions managers can take to promote competent strategy execution.
4. To integrate the knowledge gained in earlier core courses, showing you how the various pieces of the puzzle fit together, and to demonstrate why the different parts of a business need to be managed in harmony for the organization to operate in winning fashion.
5. To develop your powers of managerial judgment, help you learn how to assess business risk, and improve your ability to make sound decisions and achieve effective outcomes.
1. David, Fred R., Strategic Management Concepts and Cases, 12th Edition, Pearson/Prentice Hall, 2009.
2. Access to the Internet
Textbooks can be ordered online at the Asia DE Web site,
https://de.asia.umuc.edu/textbookinfo.cfm. Books ordered from any other source will be at the student’s own risk. UMUC Asia DE cannot be responsible for problems encountered when textbooks are ordered from sources outside of the Asia DE Web site.
Grades are determined as follows:
Midterm Exam - 100 points
Final Exam - 100 points
Class Participation and Activities - 40 points
Assignment #1 - 50 points
Assignment #2 - 70 points
Assignment #3 - 40 points
Total 400 points
Letter grades will be assigned as follows:
360 - 400 points = A
320 - 359 points = B
280 - 319 points = C
240 - 279 points = D
0 - 239 points = F
To qualify to receive full credit, submit assigned work on the scheduled due dates. Late assignments will be reduced one letter grade per week they are late. Assignments will not be accepted after one week. Plagiarized papers and assignments will receive a grade of 0 (zero), whether copied in whole or in part.
Class Participation and Grade
Regular class participation is expected especially since knowledge in the course is built progressively. Consider withdrawing from the class if you miss two or more weeks of class. The class participation is worth 40 points (5 points each week) towards your final letter grade so if you are not involved in the class it could mean a decline of one full letter grade. It may also result in poor knowledge of the course subject. Thus, even though attendance is not counted in the grade, weekly participation is.
Extra Credit: Extra credit is not normally given. However, if the instructor decides to offer it, it will be given to everyone at the end of the term as an extra credit assignment.
Do not expect an Incomplete in the course unless you have serious personal problems very close to the end of the term. The University of Maryland University College regulations are strict about the assignment of an Incomplete. Please consult the Undergraduate Catalog for further information on grading policies.
The instructor will consider giving an incomplete (I) grade only if more than 60% of the written work and exams have been completed, the student has a grade of “C” and the student makes a request. A student needs a valid reason for not completing the rest of the work. The instructor is not required to grant the request. Remember, you are responsible for maintaining contact with you instructor, participating in class discussions, and completing the work on time.
See the schedule for the dates of the midterm (worth 100 points) and the final exam (worth 100 points). Make-up examinations may be given to students who for valid reasons are unable to take exams at the scheduled time. Teachers are not required to offer make-up examinations because of a student's absence unless the student can present evidence that it was caused by unavoidable circumstances or occurred on a religious holiday. In such cases, an examination may be rescheduled and will cover only the material for which the student was originally responsible.
There are three assignments for the course. The three assignments are specific to this course and use the Southwest Airlines case study, Case 24, pages 237-249 in the textbook. For sections a-l of the assignments #1-3, you will develop a strategic plan based on the information found in the case study. For the remaining portion of assignment #3, you will be required to do some outside research.
1. The first assignment requires an analysis of Southwest Airlines, Case 24, pages 237-249. It covers material from chapters 1-3 of your textbook. Create the following section headings for the assignment and then perform the appropriate analysis on the company:
a. Company Introduction - 10 points
Provide background information about the company such as when and who established it, where it is headquartered, what kind of products and/or services it offers, where it does business, when it went public, and who are its key competitors. Also, explain that you will be conducting a strategic management case analysis that includes a vision and mission statement, an internal and external environmental assessment, an evaluation of current strategies and a recommendation for future corporate, competitive business and functional strategies. In the process, you will analyze the company’s financial ratios and
b. Vision Statement (Actual and proposed changes if it is not a good vision statement.) Is this a good vision statement? Explain your response. 10 points
c. Mission Statement (Actual and proposed changes if it is not a good vision statement.) Is this a good mission statement? Explain your response. 10 points
d. External Factor Evaluation (EFE) Matrix
(1) List of Opportunities with their weights, rating and weighted score. 10 points (2) List of Threats with their weights, rating and weighted score. 10 points 2. The second assignment requires the continued analysis of Southwest Airlines, Case 24. It covers material from chapters 4-6 of your textbook. Create the following section headings for the assignment and then perform the appropriate analysis on the company: e. Financial Ratio Analysis for 2007 for Southwest Airlines and the Airline Industry. Explain what the numbers say about the company’s finances. If you cannot find ratios for
the airline industry as a whole, select two of Southwest Airlines’ competitors and use
their ratios as a comparison. 10 points
(1) Growth rate: 5-year annual sales average
(2) Earnings per Share (EPS)
(3) Gross Profit Margin and Net Profit Margin
(4) Debt/Equity Ratio
(5) Current P/E Ratio
(6) Current Ratio
(7) Return on Equity
(8) Return on Assets
(9) Inventory Turnover
(10) Management Efficiency (Income/Employee) – Annual company reports usually
provide information about the number of employees in the organization.
Also, conduct a Net Worth Analysis of Southwest Airlines as of December, 2008 in millions and compare it to its December, 2005 Net Worth. Following are different ways to estimate or judge net worth. 5 points
(1) Stockholders’ Equity + Goodwill =
(2) Net Income X 5 =
(3) Share Price =
(4) Number of Shares Outstanding x Share Price =
f. Internal Factor Evaluation (IFE) Matrix
(1) List of Strengths with their weights, rating and weighted score – 10 points
(2) List of Weaknesses with their weights, rating and weighted score – 10 points
g. SWOT Matrix (Perform a strengths, weaknesses, opportunities and threats matrix) and complete the matrix with: (15 points)
(1) Strengths/Opportunities Strategies
(2) Weaknesses/Opportunities Strategies
(3) Strengths/ Threats Strategies
(4) Weaknesses/Threats Strategies
h. Produce a Grand Strategy Matrix. Identify the quadrant in which Southwest Airlines lies and the appropriate corporate strategies for Southwest Airlines given the results. The corporate strategies are discussed in Chapter 5. (10 points)
i. Produce a QSPM analysis using the Key Internal Factors and Key External Factors. Provided a weight for each factor and then apply the weight to an analysis of two possible strategies that evolved from the SWOT Matrix and the Grand Strategy Matrix. (10 points)
3. The third assignment requires the continued analysis of Southwest Airlines, Case 24. It covers material from chapters 7 and 8 of your textbook. You may also need to do some extra research on the Southwest Airline website or find articles about the company. After doing extra research and analyzing the case study, describe the following information about the company. Create the following section headings for the assignment and then perform the appropriate analysis on the company:
j. Recommendations – List strategy recommendations based on your analysis. How much might the strategies cost to implement? 7 points
k. Conduct an EPS/EBIT Analysis to identify whether the strategies should be financed using common stock financing or debt financing or combination (70% stock- 30 percent debt or 30% stock and 70% debt financing) of both under recession, normal or boom scenarios. See pages 313-318 for an explanation of EPS/EBIT). 7 points l. Conclusion – make some final remarks about the future of Southwest Airlines and the competitive environment in which it finds itself. 6 points
The rest of the third assignment requires the continued analysis of Southwest Airlines, Case 2, pages 12-21. You may also need to do some extra research on the Southwest Airlines website or find articles about the company. After doing any extra research and analyzing the case study, describe the following information about the company:
1. Leadership – 4 points
Who is currently the CEO of Southwest Airlines?
Is the leadership authoritarian or participative in nature?
Is leadership centralized at the corporate level or decentralized among mangers and employees throughout the company?
2. Culture – 4 points
What values, attitudes, and philosophies make up the culture of the company? How are employees treated in the company?
3. Organizational Structure – 4 points
What is the organizational structure? Choose one of the following structures or another structure if it applies and explain why it is an appropriate structure for the company. a. functional (by departments)
b. divisional (divided according to geographic location, product, customer or process) c. team (focus on various types of team efforts to accomplish all work) d. matrix (projected-oriented teams with a project leader and members that are from various functional areas that complement each other)
e. networked (core competence remains in the business while all other activities are outsourced and connected via an electronic network).
4. Performance Measures- 4 points
Performance Measures include things like time for completion of an activity, quality level of a product, speed of product delivery, inventory turnover rate, productivity levels, error rates allotted, number of product recalls, customer satisfaction levels, company financial ratios, etc.
5. Reward System – 4 points
Reward system includes reward (financial, time off, care for children, exercise facilities, cafeteria, etc) for individuals or reward for group efforts. Remember, the lack of reward or punishment is one aspect of a reward system. So, an individual can be promoted or demoted.
Week Readings, Assignments, and Due Dates
TBA Welcome to class; Introduce yourselves 1
Chapter 1 – The Nature of Strategic Management,
TBA Chapter 2 – The Business Vision and Mission, Pages 2
Walt Disney Company Cohesion Case (pages 30-43)
TBA Chapter 3 – The External Environment, Pages 80-19 3
Assignment 1 due
TBA 4 Chapter 4 – The Internal Environment, Pages 120-
TBA Chapter 5 – Strategies in Action, Pages 166-213 5
Assignment 2 due
Midterm Exam (Chapters 1-4)
TBA Chapter 6 – Strategy Analysis and Choice, Pages 214-6
TBA 7 Chapter 7 - Implementing Strategies: Management
and Operations Issues, Pages 260-298.
Chapter 8 – Implementing Strategies: Marketing,
Finance/Accounting, R&D and MIS Issues
TBA Chapter 9 – Strategy Review, Evaluation and Control, Pages 8
Assignment 3 due
Final Exam (Whole course with emphasis on chapters
This syllabus and schedule is tentative and subject to change, if necessary. Changes will be announced with as much notice as possible. A complete syllabus will be provided the first day of class.
Plagiarism: Students who violate UMUC's policy on Academic Dishonesty and Plagiarism will receive a zero on the assignment in question. Further violations of the policy will result in referral to the Associate Dean's office for further administrative action. You should read all of the UMUC's policies as they discuss your rights and responsibilities as students. You may find them by going to
http://www.umuc.edu/policy/aa15025.shtml. Guidance on how to avoid plagiarism can be found at the following sites:
? UMUC’s Effective Writing Program “Helping Students Avoid Plagiarism” –
? UMUC’s Online Writing Center “How to Avoid Plagiarism” –
http://www.umuc.edu/prog/ugp/ewp_writingcenter/modules/plagiarism/start.html ? Indiana University’s Writing Tutorial Service “Plagiarism: What it is and How to
Recognize and Avoid It” – http://www.indiana.edu/%7Ewts/pamphlets.shtml
Web Sites of Interest:
UMUC Library - Citing APA Style: Learn how to cite references in APA style. http://www.umuc.edu/library/guides/apa.html
UMUC Databases: The University subscribes to several on-line library databases that students, faculty, and staff may access via the WWW. The address to the UMUC libraries: http://www.umuc.edu/library/l ibrary.html. Log in with your Social Security number. Some databases contain full text articles. Those articles that are not full text may be ordered on-line. As a student of UMUC Asian Division you may order up to ten free articles per term. Please refer any questions about the Web Databases/MdUSA FAQ or a UMUC reference librarian at firstname.lastname@example.org.
You will be expected to write things in the process of doing your assignments. I would expect college level grammar and writing structure. I refer you to the UMUC Effective Writing Center: http://www.umuc.ed u/ugp/ewp_writingcenter/wc_home.html and the Guide to Research and Writing:
Academic Policies: Academic Policies are not course specific and are therefore created and housed separately from this syllabus. You may access and print Academic Policies from the Syllabus sub-menu in your classroom.
Faculty Bio: After working as a Strategic Planner for AT&T, Ms. Lupica became the founder and President of Early Signals. For 19 years, Early Signals offered Management Consulting services to Fortune 500 companies and non-profit organizations. Her services in the identification of trends and emerging issues (many in the information systems management area) were used by organizations to develop strategic plans, address competitive threats, and identify new products and services for customers. She also directed the Congressional Clearinghouse on the Future, an ad-hoc committee of the U.S. Congress where she provided information on emerging national issues and new technologies. Ms. Lupica has degrees in the Study of the Future, Information Systems Management, and Information Technology.