BAD 60095 I.Arikan

Case Competition Seminar

BAD-60095-004, #22461

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Course Information

Instructor:                   Ilgaz Arikan, Ph.D.

Email:                          iarikan@kent.edu, ilgaz.arikan.teaching@gmail.com

Office Hours:              By Appointment

Class Hours:                10:00-2:00 pm Fridays (or at a substitute time/day as set by the instructor)

Course Objectives

This course focuses on strategy & policy development and execution for gaining and sustaining competitive advantages in a global context. We will represent KSU at national and international case competitions (as schedule permits), and this course is designed to develop skills necessary for case-based competitions. We focus on strategic management of entrepreneurial and well-established firms, and operational and financial structures of firms and markets in domestic and international contexts. There is no one particular types of business or industry we are targeting. The goal is to learn and apply the tools for effective strategy formulation and implementation. The overall course objectives are:

1. Master the tools and methods for situation analysis, strategy formulation, correction, and execution in an international context.
2. To evaluate Government-Industry-Firm relations and to examine the competitive advantage of nations and firms in dynamic industries.
3. To learn to assess microeconomic and macroeconomic conditions for markets, evaluate the role of the constituents to provide solutions for domestic and global firms.
4. To assess the global readiness of firms for competition in the international marketplace.

This course is designed to provide tools for a framework analysis and not a “cookbook” of solutions. This way of thinking will provide an effective and powerful toolbox that one can use when thinking about global firms’ problems and solutions.

Approach to Problems and Solutions

                The approach taken to analyze and solve management problems in this course is one of applied economics; with one major distinction: the rules of the game we face are exogenous, hard to change, and most often we take certain things as “given”. However, this does not mean the outcome of the game is predetermined. On the contrary, a firm’s performance depends on its understanding of the markets, opportunity costs of forgoing other options, constituents in the system and whether its product and strategies are compatible with the environment it is entering into. So the entire responsibility falls on the “manager” to develop strategies to create and sustain rents. With this in mind, the ultimate goal is to strengthen students’ ability to identify the root cause of a problem, to formulate effective solutions, and to devise implementation strategies.

                The course material stresses the importance of theory in solving problems, and combines theory development with both examples and case analyses that illuminate and challenge the theory. The material is not technical, as it is presented in this course, but the theoretical foundations of it are very complex. Hence, it is important to keep up with the readings and to pay close attention to class discussions, and to keep good notes. Failure to do so often leaves students lost and confused when it comes time to apply the material.

Course Materials

                Textbook: There is no assigned textbook for this course, since it is assumed that all students have completed their basic training in strategic management, finance, accounting, organizational behavior, operations management, and marketing. However, to refresh your memory, or resort to a guide textbook in case you need to quickly identify concepts and examples, here is a list of some textbooks which might be used as references.  

                Milgrom & Roberts. 1992. Economics, Organizations & Management

                Gupta & Govindarajan. 2004. Global Strategy and Organization

Porter. 1990. The Competitive Advantage of Nations

Barney. 2005. Gaining and Sustaining Competitive Advantage.

Collis & Montgomery. 1997. Corporate Strategy: A Resource Based Approach

Collis & Montgomery. 1997. Corporate Strategy: Resources and the Scope of the Firm

Palepu, Healy & Bernard. 2003. Business Analysis and Valuation : Using Financial Statements,

Text and Cases

Brigham & Ehrhardt. 2004. Financial Management : Theory and Practice

Stancill. 2004. Entrepreneurial Finance: For New and Emerging Businesses

                Readings: In your reading packet you have several articles, notes and cases. Since we will not be using a textbook per se, it is very important to obtain the course readings before the lectures. The material is cumulative so it is strongly recommended that you review the material and keep up with the readings.

https://cb.hbsp.harvard.edu/cbmp/access/39858097

Course Requirements and Grading

                We will be establishing a dynamic and effective learning environment where open and rigorous discussion will be the norm. This requires a commitment on your part for participation and attendance. Participation is a major course component in this class. The following are the primary principles for grading in this course:

• The requirements of this course are identical for everyone; it is not possible to “make up” for poor performance through extra credit. If you miss your own presentation/class, no make-up or rescheduling is possible.
• Grading will be based on relative rather than absolute standards. There will be no rounding up of grades.

• Participation:                                      50 points ………. (individual)
• Team presentations:                         50 points ………. (group)

Participation: It is expected that all students are present in all class sessions for the entire duration of the class meeting. Absences include the first week of class regardless of outside circumstances.  An absence from class for any reason (job conflict, illness, appearance in court, transportation problems, etc.), even if permitted and/or excused by your instructor, will count as one class absence.  Faculty will keep record of attendance and report any concerns or problems to the Graduate Programs office. 

Related to students’ performance and/or absences, the following parameters will be followed:  

·         In the event that you are late to class, you may be accepted to join the class in session however it will count as one class absence.  This is true for all modules. 

·         In the event that there are extenuating circumstances, the student is advised to work immediately with the faculty member and program office to agree on an appropriate course of action. 

For the learning process to be effective, you will need to participate actively during every class. Only by actively participating in class discussions, you will sharpen your own insights and those of your classmates. You will learn the content of the course, and as importantly, the process of analysis and implementation that is critical to successful management. The expectations are that you analyze, comment, question, discuss, and build on others’ contributions. Participation enables you to learn from your colleagues and to help them learn from you.

Class participation involves being clear about your position and supporting it with facts, while also being willing to seek alternative perspectives on the situation. The ability to present one’s ideas concisely and persuasively, and to respond effectively to ideas of others, is a key success factor in any management position. There is clear value of and reward attached to effective participation. Hence, there will be no reward for those who talk for the sake of being heard.

For each class session a maximum of 3 points can be earned. The points are assigned as follows: “0” for no participation or no significant contribution to class learning; “1” for non-substantial comments where it is evident that the comments are not grounded in the readings; “2” for substantial arguments that do not go beyond the arguments in the readings and that lack insight of synthesis; and “3” for strong comments that integrate concepts and generate new insights. I place very strong emphasis on class participation and keep daily record.

Case Presentation

                During your presentation it is important to address the problems, analyze the situation using various and appropriate tools and answer any questions that the class might ask. It is up to the group to organize the format of the presentation and manage the allocated time as you see fit. Each presenter will be graded separately for the assigned case presentation.

There will be two different types of cases. The HBS cases, which you are familiar with from your regular classes, and the shorter competition cases, which you will soon learn to solve. The basics are the same, but it will take some time and lots of practice to get used to the shorter case format.

                HBS CASE: As a group, you will have one week to think about and prepare your case (HBS) analysis. We will start the class with the powerpoint presentation you prepared, and you will be given 25 minutes to present the case, and we will later discuss the case/and your presentation for about 15-20 minutes.

COMPETITION CASE: I will release one case right after your HBS presentation and will give you about 2 hours to prepare a presentation. You will have 20 minutes to do this presentation using Powerpoint. You may NOT use outside resources; you cannot search the internet for industry or company information. When you receive the competition case, read it twice and take notes about the issues, and case facts. Use your quick financials tables/equations to determine the financial situation, use the case analysis tools to determine the organizational effectiveness. If you are given 2 hours to prepare, make sure you allocate enough time to do at least one round of practice presentation before you do the actual presentation. Hence, time management is VERY critical in this exercise.

Office Appointments

                I will be available to discuss any issues of concern to you after class. If this time is not adequate, we can set up an appointment excluding weekends. I can always be reached via email and my usual reply rate is within 8 hours. For the case write up and case presentations, I strongly suggest separate meetings.

Schedule

Session 1 – Sept 4

Introduction and Orientation

Session 2 – Sept 11

                How to analyze a case; Competitor dynamics, trends

                External Analysis

                The five competitive forces that shape strategy. 2008. HBR #R0801e

Robert Mondavi. 2005. HBS Case #9-302-102

                How to make a global joint venture work. 1982. HBR #82310

                The way to win in cross-border alliances. 1991. HBR #91602

Session 3 – Sept 18

                Internal Analysis

Competing on resources. 2008. HBR #R0807n

                The core competence of the corporation. 1990. HBR #6528

Conglomerates, transfer pricing

Koc Holding. 1997. HBS Case #9-598-033

Arcelik. 2008. HBS Case #9-705-477

Session 4 – Sept 25

Emerging and developing market firms, institutional voids

Case – Teva. 2007. HBS Case #9-707-441

Emerging giants. HBR #R0610c

Strategies that fit emerging markets. HBR #R0506c

Session 5 – Oct 2

Global expansion models, transforming company strategies           

Case - Bimbo. 2008. HBS Case #9-707-521

                Managing differences. HBR #R0703c

Session 6 – Oct 9

Global strategy choices, flexible intermediate adaptation

Case – Lincoln Electric. HBS Case #9-707-445

                Distance still matters. HBR #R0108k

Session 7 – Oct 16

Organic growth, acquisitions, and alliances

Case – AmorePacific. 2006. HBS Case #9-706-411

                When to ally and when to acquire. 2004. HBR #R0407h

Session 8 – Oct 23

Sustained competitive advantages, ownership and control

                Case – Harley-Davidson. 2007. HBS Case #9-906-410

Session 9 – Oct 30

Competition practice

Session 10 – Nov 6

                Competition practice

Session 11 – Nov 13

                Competition practice

Session 12 – Nov 20

Competition practice

Nov 27 – Thanksgiving – No class

Session 13 – Dec 4

Final Wrap up - Overview

                Competition practice in front of a panel of judges

INSTRUCTOR CASE EVALUATION FORM

This is the simplified version of the outline that I use to evaluate what I will be looking for in your group presentations.

1.       Summary of the critical issues

·         Most of the information in the case is not repeated                       

·         Identification of internal and external issues                                  

·         Identification of the most important issues     

2.       Strategic Analysis                                                                           

·         Evidence of deeper analysis beyond what is written or presented           

·         Suggests realistic options (alternatives) for the company                                           

·         Identifies pros and cons of options                                                    

·         Provides realistic, case-based support for the options

·         Appropriate use of case analysis tools (VRIO, 5-forces, Diamond, Balanced Scorecard, etc.)

3.       Recommendation                                                                            

·         Quality and support of the recommended option                                         

·         Implementation impact of the recommendation                                                                                                           

4. Other grading criteria

·         Clarity and logic of ideas                                                                       

·         Use of exhibits

·         Clarity of writing

·         Grammar, spelling, structure                                                                               

·         Organization of presentation

·         Speaking style, use of visual aids and handouts, balance of speakers

·         Dress and overall professionalism

SAMPLE – SAMPLE – SAMPLE - SAMPLE – SAMPLE – SAMPLE - SAMPLE – SAMPLE – SAMPLE

                                           CASE PRESENTATION EVALUATION FORM

When you are presenting, the class will provide constructive criticism to help you. After each presentation, I will return the evaluation forms with the name portions cut to presenting team the following day.

Group #: ________________________________      Evaluator: _______________________________________

Case:      ­­­­­­­­­­­­­­­­­­­­­__________________________________ Overall Score: ___________________

Excellent =5        Good = 4       Acceptable = 3           Marginal = 2       Poor = 1

Organization and Presentation of Report:

Dress and professionalism                                                                                            ______________

Length of the presentation                                                                                             ______________

Organization of the presentation                                                                 ______________

Overall impression of speaking style and grammar                                             ______________

Ability to handle questions                                                                                            ______________

Visual aids                                                                                                                          ______________

Content of the Report

Description of the factors in the environment                                                          ______________

Internal strengths and weaknesses                                                                             ______________

Clear identification of the critical strategic problem                                              ______________

Understandable and reasonable alternatives                                                          ______________

Strategic analysis                                                                                                              ______________

Application of class concepts                                                                                       ______________

Support for recommendation                                                                                        ______________

Logical recommendation                                                                                               ______________

Use the following space to give constructive feedback to this group.

Comments: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.

GENERIC CASE ANALYSIS

The purpose of this note is to describe briefly what is involved in the use of cases in management education. Also this document would make the case analysis guidelines easier to understand for those who have not done sufficient amount of cases before this course. If this appendix is not adequate in helping you understand the case analysis methods, please contact the instructor for further assistance.

WHAT IS A CASE ANALYSIS?

Case analysis is a task common to many forms of professional education in which students are asked to examine a lifelike situation.  At its simplest you may be given a problem, a set of events, or a particular situation in which there is something quite clearly wrong.  Here your task might be to identify the basic problem, supporting your diagnosis with material from the case.  You might be asked to provide a “solution” or recommend actions; these should speak to the basic problem and be feasible based on the information given.

Many cases have no clearly defined problem.  In the analyses of such cases the major task is explaining why things are as they are.  If some features of the status quo seem undesirable, what are the prospects for the consequences of change?

The purpose of a case analysis is to provide practice in cutting through the obfuscating noise and detail of a situation to reveal what really makes things tick. Simply stated, the use of the case method calls for discussion of real life situations that have been faced by business executives.  These situations have been developed as "cases" by case-writers and professors.  They strive to present to you as much of the information that was available to the business executives concerned.

The use of the case method includes four distinct phases to the learning process.  In order, these are individual study, group discussion, and classroom discussion. Each of these is discussed in turn below.

INDIVIDUAL STUDY

Initially, you need to carefully read and think about the individual case in question (two hours of individual study time for a case is not unusual).  It is then necessary for you to come to your own conclusions as to what should be done, if anything.  The process of arriving at your own personal position on each case is a most important aspect of the program.  If you clearly take a position, then you will be personally involved in the discussions -- and intensely interested.  On the other hand, if you simply read the case, remaining neutral about it, you are less likely to be affected and thus less likely to learn. In approaching a case, as a start, consider the following factors:

• What is the problem?  There may be many problems.  Write them down.  Then prioritize them.
• How urgent is the need for a decision?
• What industry, firm, or macro factors or trends are influencing the decision?
• What are the human factors?
• What are the relevant costs and revenues?
• What is your market?  How would you reach it?
• What alternatives are open to you?
• What resources do you have?
• What would you do? 
• What action do you recommend?

Be prepared to support your recommendations, while maintaining an open mind toward other ideas. Before you gather with your group and discuss the case(s), you will need to spend some time on your own. The next section is aimed to introduce the necessary steps in writing up a case (or deciding what you will incorporate in your presentation).

STEPS FOR INDIVIDUAL CASE ANALYSIS

Step 1.  What are the facts? This step involves understanding the major “facts” presented by the case.  The purpose is to systematically view the facts, and thereby:

• test for unclarities,
• develop an organized sense of the whole,
• discover differences in opinions[1] (among the group).

Step 2.  What can one infer from the facts? We can make many kinds of inferences from the facts, including inferences about:

• people’s attitudes,
• internal relations,
• relative power and influence,
• requirements of the job (e.g., technical skills, etc.),
• cost structure, business strategies, etc.
• relevant criteria for success (e.g., delivery is more important than cost).

All such inferences are speculative and may often be only tentative or contradictory (e.g., we could infer from his statement that he is ignorant of the prior event or that he has knowledge of the prior event and is playing dumb). Such inferences grow out of one’s knowledge and theory of human behavior, organizations, and economics.  They contribute hypotheses or probability statements.  Managers must often make decisions and initiate action on the basis of just such judgments of what is probably the true course of action.

Step 2A.  What is going on here? An alternative to Step 2 is to analyze what is going on here and why?  This is particularly useful in terms of human behavior. Analyze why someone is angry, why the company is under such time pressure, why there is such little contact between departments, etc.

Step 3.  What problems, if any, exist, and why? The obvious problem or the problem stated by the characters in the case is often not a real problem or not the most basic problem. The second part of this step is to attempt to analyze why the problem exists.  This can often lead to the recognition of more basic problems.  The direct problem of insufficient output, when analyzed might be due to a lack of coordination between two departments, thus suggesting that poor departmental relations is a more basic problem. Also note the importance of seeking multiple causes for problems and not just a single cause.

Step 3A.  What additional information do I need to analyze this case adequately? Often we get needed additional data from common references.  Sometimes a decision may have to be made without such data but a thorough analysis at least includes recognizing what one would do in a real situation; and explicitly stating any assumptions you are making about such data.

Step 4.  What are possible solutions to the problems? It is easy to settle for one or two solutions.  I would suggest adopting a “brain-storming” approach, which focuses on thinking up a number of possibilities, with little concern if some are “far out.”  After focusing on viable possibilities, focus on evaluating them, but first seek to be creative in thinking up a number of possible solutions.

Step 5.  What are the consequences of each alternative? I use the word consequences because it is neutral and includes both positive as well as negative results. Too often we settle for just one or the other whereas most decisions have both “costs and benefits.”  Identifying “costs” can also suggest ways to modify an alternative so as to reduce the costs. Also seek more than one consequence.  Too often we settle for only one or two obvious consequences. More importantly your alternatives have to be mutually exclusive. If you choose one alternative you cannot at the same time follow another alternative.

Step 6.  Decide on alternatives and give rationale for the “best choice”. Here we come to the point of the choice, which alternative do you choose, and why? The “why” part is important.  It involves putting together a systematic rationale for your choice and should often include anticipating and rebutting counter arguments.  It should also explicitly state assumptions you are making.

Step 7.  What general ideas can be drawn from this case that might have application elsewhere? A case may often give emphasis to a theoretical concept, and this would be worth noting.  It may add a further insight to the meaning or limitation of some theoretical concept.  It may raise issues that warrant further thought.  It may directly suggest new concepts or hypotheses worth applying in the future.

GROUP DISCUSSION

After you have had an opportunity to develop your own view regarding a case, the next phase is Small Group Discussion.  The purpose of these groups is to assist participants in developing their own points of view on the issues and problems raised in the cases to be discussed in succeeding classroom sessions.

These small discussion groups allow reasonably riskless testing of ideas.  They are especially important to those persons in the program who are able to express themselves in small groups more easily than in a larger group.  The small group discussions should also help to focus the discussion on the main considerations present in the case when the entire class meets.

Each small discussion group will have a group leader.  The role of that leader includes keeping the discussion on track, trying to involve all group members, and trying to elicit all shades of opinion.  The process of dealing with the case in small group discussion might well start with an identification and analysis of the major problems and issues raised in the case.  It could then proceed to specific plans of action, outlining steps to be taken by the principals in the situation.

Emphasis should not be placed on securing the agreement of all group members to a single plan of action.  Rather, participants should be prepared to forward and defend their own points of view in classroom sessions

Any meaningful case analysis involves employing facts related to the specific instance described in the case.  Therefore, thorough case preparation for group and class discussion is essential.  Much of the potential benefits from a study group session are lost if it is used to digest the facts of the case.

SUMMARY

In employing the case method learning as a pedagogical tool, there are some questions or comments that can be reasonably well predicted.  Those include the ones discussed briefly below.

One object of the case method is to obtain all of the views of all the participants in the case discussion.  Thus, a wide variety of views often emerge.  A frequent criticism by participants is that some of the remarks of their associates are irrelevant, or not especially useful.  It is herein suggested that case discussions must entertain all ideas; otherwise some really good ideas might be lost.  In addition, a wide-ranging discussion down the wrong path may often be a very rewarding experience.

It is not the purpose or task of the instructor to direct the discussions along pre-determined avenues, but rather to elicit all the views, opinions and recommendations that can be obtained. Hence, it should be appreciated that where the discussions go and to where they lead is the collective responsibility of the group, not of the instructor alone.

A typical request at the end of a case discussion is: What is the answer?  It should be emphasized here that the case method of learning does not necessarily provide "the answer."  Rather, it sharpens our skills in recognizing and dealing with significant and complex problems.

In many case discussions, several viable "answers" will be developed and supported by various segments of the class.  The object of the case method has then been obtained: people (and individuals) have a well-formulated position regarding what they would do.  What actually happened or what any one person thought ought to be done is not necessarily of great significance.  What is significant is that you know what you would do in a specific situation.

There is no better way to learn to use cases than to use cases.  So we encourage you to dig right in; however, keeping a few tips in mind may help you along. The key to your learning and to good performance in case discussions is preparation.  Indeed, while a high degree of preparation is not enough to insure a productive case discussion, it certainly is an essential condition for one.

In your preparation I suggest:

1. Reading through the case one time to get an overview of the situation and a sense of the problem areas, if any.  (Remember that in some cases there may be no pressing problems.  The same skills are required to recognize and understand the cases of normal as well as abnormal organizational functioning).
2. Then, Go back and undertake a systematic diagnosis of the organization situation described.  Note (in writing!) specific problems and possible causes, and jot down the facts and observations you are citing as supporting evidence.
3. Remember that cases are tools.  Underlining key points, making notes in the margins, etc., will aid you in your preparation and service to job your memory during case discussions.
4. Once you are satisfied with your diagnosis, decide on your objectives in attempting to resolve any problems you have identified. 
5. Then generate a number of alternative solutions and evaluate each in terms of the objective you have established.  Don’t be afraid to be creative in developing solutions. 
6. Remember that the implementation of any solution will have “unintended consequences.”  Try to anticipate as many of these as possible, and consider them in your evaluation of alternatives.

GUIDELINES FOR GROUP DISCUSSION LEADERS

Here are a few suggestions to help you start your Discussion Groups.  A great deal of the benefit (particularly in the beginning) from the Group Discussion will depend upon the effectiveness of the Discussion Group Leader.

In approaching a case, remember there is no absolutely correct solution.  There may be a number of equally valid analyses of the case.  Each case is a situation that someone has to face, and in general, you are THE person.  You may be at any organizational level.

Try to plan your time so that the group deals adequately with all aspects of the assignments.

Try to ensure that the group discusses or at least identifies the major elements of the problem under consideration.  This should be done in preference to dwelling on any specific point or technicality.

Members of a discussion group are not supposed to reach a consensus.  Rather, each is trying to test their own ideas and to discover new dimensions of the case situation from the others.  If members hold opposing positions after an exchange of views, move on to other aspects of the case.  There is no need and little likelihood of settling major differences of opinion during the discussion group meetings.

Encourage reticent members to participate in the group discussions; try to discourage anyone from talking too much.  The group discussions are an important occasion to exchange ideas and to help one another.