MANAGERIAL POLICY

FALL 2022

Professor: Shoaib Ul-Haq Class: Zoom

Office Hours: 1 hour after the class time Credit hours: 3
Email: shoaib_ulhaq@yahoo.com

INTRODUCTION AND COURSE DESCRIPTION:

This capstone course covers the fundamentals of both business-level and corporate-level
strategy. The course is designed to introduce a wide variety of modern strategy
frameworks and methodologies, including methods for assessing the strength of
competition, for understanding relative bargaining power, for anticipating competitors’
actions, for analyzing cost and value structures and their relevance to competition, and
for assessing potential changes in the scope of the firm (diversification and vertical
integration). Basic mastery of these tools has relevance to everyone seeking a career in
business.

The course adopts the perspective of the general manager who has overall responsibility
for the performance of the firm or business unit within the firm. Such as manager needs
to understand the basis for the current performance of the firm. The manager must also be
able to identify changes (inside or outside the firm) that are most likely to affect future
performance adversely or to provide opportunities for the firm to improve its
performance. The manager must then develop a strategy that uses the company’s position
and capabilities to compete successfully in its new environment.

Of course, general managers need to understand the functional areas of the businesses
they manage. Indeed, this is why I will frequently draw on functional expertise developed
in other BBA courses such as marketing, operations, finance OB and economics. This
enables the students to view the organization as a whole and to understand how different
‘pieces of the organizational puzzle’ fit together. In other words, we will attempt to see
how different internal and external systems and processes work together to determine the
success/failure of an organization. However, the general manager’s role is not simply to

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oversee those functional areas, but rather to set a strategic direction for the firm and to
coordinate the activities of the firm to help achieve its strategic goals.

COURSE LEARNING OUTCOMES:

The learning outcomes for the course are as follows:

1. Developing and reinforcing a general management perspective.

2. Understanding the fundamental concepts in strategic management: strategy
identification and evaluation, firm strategic analysis, the relationship of strategy and
organization, industry analysis, competitor analysis, firm and industry evolution,
strategic and organizational responses to external changes, corporate strategy
(diversification strategy and managing the multi-business enterprise), and
international strategy.
3. Integrating knowledge gained in previous core courses with a focus on understanding
what part of that knowledge is most useful to general managers.
4. Developing an awareness of the impact of external environment forces (esp. in a
turbulent business environment of Pakistan) and of strategic actions by the firm and
its rivals on business and corporate strategy.
5. Developing habits of logical, analytical thinking, and skill in reporting conclusions
effectively in written and oral form.

BBA PROGRAM LEARNING GOALS:

The objectives of the program are:

 Effective communication skills

 Knowledge of all business disciplines
 Critical thinking skills
 Ethics
 Glocal mindset

Course Learning Outcomes mapped to Program Learning Outcomes:

Learning Communication Knowledge Critical Ethics Glocal

outcomes skills of all thinking mindset
business
areas
1    
2  
3 
4  
5 

WORKLOAD:
This course is labor intensive, both individually and in groups. In addition to term
project, you will be responsible for case preparation, completing assigned readings,
various presentations, and other deliverables that will be described in this syllabus. High

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 performance in this course requires participation and preparation in all aspects of the
course.

COURSE DELIVERY:
This course will be conducted live via videoconferencing using Zoom and will not
involve in-person instruction. The Zoom link will be distributed via email before the first
class. For recording attendance and class participation, you will be expected to have your
camera and microphone on during class time. Have your microphone muted and unmute
yourself only when you speak. The students are expected to have their full name visible
on Zoom.

STUDENT RESPONSIBILITIES:
- Students are expected to be ready and willing to discuss both the assigned material,
videos and cases for every session listed in this outline. This will require 4-5 hours of
advanced preparation for each session.
- Students are expected to attend class regularly and be responsible for any course-related
announcements which may be made in class, even if not present for the particular session
in which the announcement is made.
- Students are required to form their own groups for the term project and the same group
can also be used as a study group for support in pre-class preparation. Ideally, this group
should comprise people with knowledge of a variety of business areas (marketing,
finance, operations etc.) as well as skills in effective communication (writeup,
presentations etc.). A well-functioning study group can also add a great deal to the
learning experience and enjoyment of this course. Please note that members of the team,
once selected, will not change during the term.
- Students are also expected to select a company where they can access the data.
- A student who misses a session is solely responsible for getting notes from other students
and making him/herself aware of announcements made, handouts delivered, or any other
activities conducted in class.

COURSE PRE-REQUISITES:
Introductory courses in management, marketing, accounting, finance, operations
management, and organizational behavior.

COURSE MATERIALS:
All the course materials are available at LMS and also at dropbox.

REFERENCE BOOKS:
1. Hill, C. W. L., & Jones, G. R. 2012. Essentials of Strategic Management (3rd
ed.). Mason, OH: South-Western.
2. Grant, R. M. 2019. Contemporary Strategy Analysis (10th ed.). Hoboken, NJ:
John Wiley & Sons.
3. Saloner, G., Shepard, A., & Podolny, J. M. 2008. Strategic Management. New
York: John Wiley & Sons.
4. Koller, T., Goedhart, M., & Wessels, D. 2020. Valuation: Measuring and
Managing the Value of Companies (7th ed.). Hoboken, NJ: John Wiley & Sons.

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 5. Schilling, M. A. 2019. Strategic Management of Technological Innovation (6th
ed.). New York: McGraw-Hill.
6. Kiechel, W. 2010. The Lords of Strategy: The Secret Intellectual History of the
New Corporate World. Boston, MA: Harvard Business Press.
7. Besanko, D., Dranove, D., Shanley, M. T., & Schaefer, S. 2016. Economics of
Strategy (7th ed.). New York: John Wiley.
8. Christensen, C. M., Anthony, S. D., & Roth, E. A. 2004. Seeing What's Next:
Using the Theories of Innovation to Predict Industry Change. Boston, MA:
Harvard Business School Press.

GRADING & EVALUATION:

The nature of this course does not lend itself to objective questions; generally, there are
no “right” or “wrong” answers. There are, however, different levels of quality.

All the assignments are considered late if not turned in at the scheduled time. Exceptional
circumstances which might jeopardize your ability to meet deadlines must be brought to
my attention prior to the due date, or else they will not be considered. If you are involved
in any co-curricular activities (e.g., sports), you will need to negotiate your contribution
with your team members. The team may complete and submit the term project
deliverables prior to the deadline. Please note that each team member will receive the
same grade for the project.

Your final grade in the course will be computed using the following weights:

Assessment item Individual/Group Percent

Class Participation Individual 10%
TED Talk Assignment Individual 5%
Quizzes (n-1) Individual 10%
Mid exam (take-home case) Individual 20%
Final exam (take-home case) Individual 30%
Term Project Group 25%
- Company Analysis
- Industry Analysis
- Presentation
- Written Report

A word to the wise:

The final grade in this course is not just the result of how intelligent a student is. It is the
result of many factors which include your knowledge, skills, study and writing habits, the
availability of time and personal issues (to name a few), and how each of these things
interact with one another. My advice to you is to design your own strategy for this
semester so you can pay full attention to the assigned readings and assignments. This will
be an investment that you will not regret!

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RELEVANT MOVIES:
Joy (2015) The Founder (2016)
The Big Short (2015) Boiler room (2000)
Moneyball (2011) Extreme Job (2019)
Becoming Warren Buffett (2017) Bazaar (2018)

CLASS PARTICIPATION:
Class attendance is a requirement. If you’re not in class, you can’t participate. You
should notify me in advance via email if you cannot attend a class. Missing multiple
classes can seriously jeopardize even the best student’s chance of success in this class.
When there are speakers or student presentations, class participation (or lack
thereof) counts double.

Participation is evaluated by the quantity and quality of your input. Thus, students are
expected to adequately prepare for all classes. Overall, let’s try to create discussions
around interesting, creative, and insightful comments that stimulate the minds of all
students.

You are strongly encouraged to bring in outside information (stories/facts) pertaining to

strategy that will interest the class. We can spend a few minutes at the beginning of class
sharing your stories. Participation here will strongly contribute to your overall
participation grade. Think of your class as your business meeting. Come prepared!

QUIZZES:
Individual surprise quizzes will take place at the beginning of class in 2 or 3 sessions of
this course. If you miss a quiz a 0% will be recorded for that quiz – there are no make-up
quizzes. Quizzes will essentially cover material from the lectures and conceptual learning
from the cases. Quizzes will be closed book, closed notes.

TED Talk ASSIGNMENT:

You will watch a video on any TED talk platform available on youtube.com. You will
submit a review of this video (max: 3 pages). The video should include a finding from
strategy or a closely related topic within the management discipline. Be bold: I applaud
originality.

In this assessment, I expect you to provide:

(a) A short description of the strategy related topic
(b) The overall argument, perspective, and insights of the speaker
(c) A critical assessment of the argument; what strikes you as noteworthy or
important; is the argument convincing; how the talk enhanced your understanding
of strategy?
(d) Originality. Is the topic or argument or any empirical evidence presented in the
video original? By original I mean does it challenge your background
assumptions.

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 (e) Follow academic writing practice which implies that your work should be
scholarly, ethical (provide citations) and trustworthy.

TERM PROJECT:
You are required to work in groups of no more than 6 students for this project. Each
group is required to perform an in-depth longitudinal analysis of a company and the
industry in which it operates and submit a written report. You have to approach a
company and gather information/data through actual visits to the headquarters and/or
factory/outlet of the company. You are also required to browse and collect data from
secondary sources. Please note that you should not choose a company unless you have
access to its data that you are able and willing to share. You need to determine what
are the interesting and important issues facing the company you choose. Your group
should discuss the project with me a few times during the course via zoom. At the end of
the course, each group will present their work.

Please find below a set of questions/topics which you can use to focus your term project.
Please note that you don’t have to blindly follow these questions but if you want to work
on something new, you need to obtain an approval from me first.

- Industry analysis:
o Apply Porter’s five forces framework on a Pakistani industry with
concrete recommendations for a Pakistani firm
- Technology:
o Use any Pakistani firm to analyze the impact of adopting latest technology
on firm’s performance and strategy.
o Is the digital economy redefining industry structure? If yes, how?
o How can traditional Pakistani firms make a successful strategy to
transform themselves digitally? Use the example of a Pakistani firm which
has done this successfully.
- Competitive positioning:
o What is the impact of positioning strategies on production/service firm
performance in a Pakistani context?
o Is there a link between R&D intensity and competitive positioning of
firms in a Pakistani context?
- Innovation:
o How and why do product innovations develop over time? Use the example
of a Pakistani firm known for product innovation.
o How can firms nurture intrapreneurship to enhance innovation
performance in a Pakistani context?
- Corporate strategy:
o Use the example of any large Pakistani business group to analyze the
impact of diversification on group’s performance?
o Is corporate culture a resource to develop competitive advantage? Use the
example of a Pakistani firm.
- Governing structure:

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 o Does family control influences firm strategy and performance? Use the
example of a Pakistani family business.
- Global strategy:
o What determines the international success or failure of Pakistani firms?
o Are regional strategies better than global? Use a Pakistani example.
- Public regulation:
o Do reforms or regulation by the state differentially impact firms’
performance in the industry? For example, think about the recent Pakistani
auto policy’s impact on auto firms.
- Strategic change:
o When do the pressures that stimulate the need to change a firm’s strategy
outweigh the inertial forces that dampen the need for change?

Here is a brief checklist of questions to look into when choosing a company:

- How well does the typical player in the industry perform? Calculate a few average
performance metrics for 50+% of the market to get a sense for how ‘good’ or attractive is
the industry overall (ROIC, ROE, ROA, margins, revenue growth etc.).
- How well does the firm you have chosen to study perform? If you want to explain a
valuable company – be sure the company is as profitable as you believe. You might also
be interested in explaining poor performance – a company in decline or a company that
failed to live up to its previous hype.
- What key “points of variance”/competitive advantages does the firm enjoy?
o On the WTP side? That is, is the company’s output judged as superior?
o On the cost (C) side? Is the company’s output judged as comparable, but
the firm has a cost advantage? It is possible that both WTP and C are
advantaged.
- What ‘moats’ surround the firm’s point of variance?
- What organizational attributes ensure that productivity (human/financial capital and use
of the firm’s key strategic assets) allocated to best use? Are the people notably engaged?
- Is there potential for sustained marketing advantages?
o Any interesting channel issues?
o Effective feedback of WTP for expensive product attributes?
o How effective is communication? Use of social media? Revenue model?
- Is there potential for sustained operational advantages?
o Is the firm ‘on the frontier’?
o Notable use of managerial accounting.
- Are there financing choices that are critical to the firm’s strategy?
- Any notable threats on the firm’s horizon?
- What factors, in the future, are likely to impact the performance of the firm and the
market in which the firm competes over time?

You should try to execute the above in a creative, enlightening, and somewhat nuanced way.
Go much deeper beyond the platitudes and shallow analysis that is often found in the press
reports. A company in an industry with a small number of firms is usually a good place to
start.

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NOTE:
- Some research on the details is necessary, but the key to a successful presentation is to
analyze and teach vs. describe.
- You will be graded based on questions such as, ‘why is the firm doing what is doing?’
or ‘why is competition in the industry evolving the way it is’?
- The biggest mistake which students make is devoting the majority of their time/page
allocation to a description of the industry or company and providing very little in the
way of analysis.

MID AND FINAL EXAM:

Mid and final exam will be case based and will test you on your knowledge of the content
of the course. These will be take-home exams and you would need to turn them in by
uploading your response on LMS.

COURSE OUTLINE:

MODULE ON FOUNDATIONS OF STRATEGIC ANALYSIS

Session 1: Introduction: Setting the Stage

- Porter, M. E., “What is strategy?” HBR, Nov-Dec 1996.

- Chapter 1: “The strategy-making process”, Hill & Jones. Part 1.

Watch the following video:

- Financial ratios (https://www.youtube.com/watch?v=WJsSgT_on6s)

Key concepts introduced: Introduction to strategic management, value creation, value

capture, financial ratios (recap), SWOT analysis

Preparation for class discussion:

1. How would you define ‘strategy’?
2. Who makes strategy? Who should make strategy?

Session 2: Strategy making process

- Chapter 1: “The strategy-making process”, Hill & Jones. Part 2.

Watch the following video:

- A plan is not a strategy (https://www.youtube.com/watch?v=iuYlGRnC7J8)

Key concepts introduced: Strategy as an emergent process; strategic leadership; strategic

decision making

Preparation for class discussion:

1. Can you represent the process of strategy making as a diagram?

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Session 3: Industry Analysis Basics: The Five Forces

- Chapter 3: “External analysis: The identification of opportunities and threats”, Hill &
Jones.

Watch the following video:

- Porter’s five forces plus complements
(https://www.youtube.com/watch?v=W0hySWGHKj4)

Key concepts introduced: Industry structure, Porter’s five forces model, strategic groups,
industry life cycle analysis.

Preparation for class discussion:

1. Is five forces analysis truly useful? Can you find any real-world example?
2. What are the limitations of industry life cycle concept?
1. are
Session 4: Industry Analysis Basics: Industry identification

- Exercise: “Identifying industries through financial statement analysis: Pakistan 2017”

Key concepts introduced: Industry identification from financial statement analysis

Preparation for class discussion:

1. Match the financial statements with the industry.

Session 5: Industry Analysis Basics: ROIC

- HBS Note: “Fundamental enterprise valuation: Return on invested capital (ROIC)

- Optional reading: Ch-8, ‘Return on invested capital’, Koller et al., 2020.

Watch the following video:

- Return on invested capital (https://www.youtube.com/watch?v=8tgAUO4oqc4)
- Weighted average cost of capital (https://www.youtube.com/watch?
v=1aMH_zPu4FQ)

Key concepts introduced: Comparison of ROIC with WACC.

Preparation for class discussion:

1. Do some online research on Pakistani auto industry. Which firms have the highest
market share? Which car makers earn ROIC > WACC (let’s assume 8%). How
attractive is the auto industry?

Session 6: Firm analysis: SWOT analysis

- Ivey case: “Netflix Inc.: Streaming away from DVDs”

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Key concepts introduced: SWOT analysis

Case questions:
1. Conduct a basic SWOT analysis of Netflix.

Session 7: Strategy Analysis: Application of SWOT and five forces model

- AJMC Case: “Fashion Knits: Ali’s Vision”, Asian Journal of Management Cases,
2005.

CASE QUESTIONS:

1. Given Ali’s existing background, did he make the right decision in giving up a
promising career in finance and entering the textile sector instead?
2. What is the business opportunity in this case? Conduct Porter’s five forces analysis to
answer this question.
3. Is the industry expected to change in the light of WTO laws? If yes, then how?
4. Conduct a SWOT analysis for Fashion knits. Does Ali’s strategy align with the
resources and capabilities of the firm?
5. Who does Ali view as being his competition and why?
6. Consider five external factors: taste, technology, regulations, capital markets and
globalization. What can be their effects on Fashion Knits?

MODULE ON CLASSICAL STRATEGIC ANALYSIS: SOURCES OF

COMPETITIVE ADVANTAGE

Session 8: Value Chain Analysis

- Chapter 4: ‘Building competitive advantage’, Hill & Jones.

- Optional reading: Brandenberger, A. M., and Nalebuff, B. J. (1996). Co-opetition: A
Revolution Mindset that Combines Competition and Cooperation, New York:
Doubleday.

Key concepts introduced: Types of competitive advantages, co-opetition, value chain,

distinctive competencies.

Session 9: Value Chain Analysis- I

- Babson case: Levis ‘personal pair’ jeans

CASE QUESTIONS:
The assignment questions are available at the end of the case.

Session 10: Value Chain Analysis- II

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- Babson case: Levis ‘personal pair’ jeans

CASE QUESTIONS:
The assignment questions are available at the end of the case.

Session 11: Sources of Competitive Advantage: Niche Positioning - I

INSEAD case: FabIndia: Branding India’s artisanal crafts for mass retail

Key concepts introduced: Niche positioning

Preparation for class discussion:

1. Analyze the FabIndia business model and its critical success factors.
2. Construct a SWOT for FabIndia, using it to consider Fabindia’s position versus its
competitors?

Session 12: Sources of Competitive Advantage: Niche Positioning - II

INSEAD case: FabIndia: Branding India’s artisanal crafts for mass retail

Key concepts introduced: Niche positioning

Preparation for class discussion:

1. Could it continue to remain a niche player or broaden its positioning?

Session 13: Sources of Competitive Advantage: Differentiation-I

HBS Case: “Samsung Electronics”

CASE QUESTIONS:

1. Conduct industry analysis of the semiconductor industry.

Session 14: Sources of Competitive Advantage: Differentiation- II

- HBS Case: “Samsung Electronics”

CASE QUESTIONS:

2. What kind of competitive advantage are the Chinese entrants seeking? How close are
they to achieving this advantage?

Session 15: Sources of Competitive Advantage: Differentiation- III

- HBS Case: “Samsung Electronics”

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CASE QUESTIONS:

1. Is Samsung’s competitive advantage built around being low-cost or being

differentiated? Or Both?
2. What is the future of the semiconductor industry and how Samsung can remain
competitive?

MODULE ON COMPETITIVE DYNAMICS

Session 16: Competitive Dynamics: Entry Games - I

- AJMC Case: ‘Mobilink – Pricing under competition’, 2011

Case Questions:
1. What decision(s) is Mobilink facing and what are some of the factors that you will
keep in mind in addressing this/these decision(s)?
2. What factors have led to Mobilink’s success in the cellular market in early 2005?
Where is Mobilink vulnerable?

Session 17: Competitive Dynamics: Entry Games - II

- AJMC Case: ‘Mobilink – Pricing under competition’, 2011

Case Questions:
1. Do you agree with Telenor’s entry strategy? What other options did they have?
2. Why are the cellular phone prices so complex and unstable? What opportunities and
risks do they entail? Why do managers monitor ARPU and/or lifetime value of
customers?
3. What pricing option would you select in order to respond to Telenor? Why?

Session 18: Managing Disruptive Technological Discontinuities

CASE: Digitalization at Siemens

1. What is the vision for the future of the industrial internet (Internet of
Things/Industry 4.0)?
2. What new business models does it support? What changes is it leading to in
your businesses?

Key concepts introduced: Impact of industrial internet on economy; New digital

business models; Managing technological disruption

Session 19: Managing Disruptive Technological Discontinuities - I

CASE: Digitalization at Siemens

1. Does it make sense for Siemens to pursue the “digitalization” initiative as

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 part of Vision 2020?
2. How do you evaluate Siemens approach to digitalization? Is it likely to be
more or less effective than the comparable effort at GE?
3. By learning from this case, when is it appropriate for a company to
launch a “corporate initiative”?

MODULE ON CORPORATE STRATEGY AND GLOBALIZATION

Session 20: Strategy and international business

Chapter 6: “Strategy in the global environment” Hill & Jones.

Key concepts introduced : Expanding the market, realizing economies of scale and
location economies, glocal mindset

Preparation for class discussion:

1. Are the following global industries or are they characterized by local responsiveness:
bulk chemicals, pharmaceuticals, branded food products, moviemaking, television
manufacture, personal computers, airline travel, and cell phones?

Session 21: Globalization strategy - I

HBS CASE: ‘Majid al Futtaim retail geographic expansion: Brick or click?’

Case question:
1. Comment on the current challenges being faced by the firm.

Session 22: Globalization strategy - II

HBS CASE: ‘Majid al Futtaim retail geographic expansion: Brick or click?’

Case question:
1. What does this case teach you about the retail industry?

Session 23: Globalization strategy - III

1. Ivey CASE: ‘Student biryani: Glory to glitches in a global journey’

2. Yip G. S. (1989) Global strategy ... in a world of nations. Sloan Management Review
89(1): 29-41.

Case questions:
1. Discuss different perspectives regarding globalization and analyze how
and why SB went global.
2. Apply George Yip’s globalization framework to understand SB’s
globalization drivers and its mode of entry into international markets.
3. Evaluate the major challenges faced by SB in international markets and

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 the available global strategic options. What would you recommend?
4.
Session 24: Corporate level strategy

- Chapter 7: “Corporate level strategy and long-run profitability’, Hill & Jones.

Key concepts introduced : Horizontal integration, vertical integration, restructuring &

downsizing.

Preparation for class discussion:

1. Why was it profitable for GM and Ford to integrate backward into component parts
manufacturing in the past, and why are both companies now trying to buy more of
their parts from outside?

Session 25: Strategic change

- Chapter 8: “Strategic change: Implementing strategies to build & develop a company”, Hill
& Jones.

Key concepts introduced : Model of the change process, internal new ventures,
acquisitions.

Preparation for class discussion:

1. Provide an example of a Pakistani firm which grew through acquisitions.

Session 26: Change through organizational design

- Chapter 9: “Implementing strategy through organizational design”, Hill & Jones.

Key concepts introduced : Horizontal differentiation, integration, and organizational

control.

Preparation for class discussion:

1. What is the difference between a ‘product structure’ and a ‘product-team structure’?

Session 27-28: Term project presentations

COMMENTS/SUGGESTIONS:
Students can contact me anytime during the course in case of any problem/issue they are
facing. The preferred method of contact is email.

TECHNOLOGY REQUIREMENT:
There is no specific technology required for this course.

ACADMIC CONDUCT:

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I refer you to IBA’s policy on academic conduct available in the student handbook.

ATTENDANCE POLICY:
I refer you to IBA’s policy on attendance.

PLAGIARISM POLICY:
I refer you to IBA’s policy on plagiarism.
WIITHDRAWAL POLICY:
I refer you to IBA’s policy on course withdrawal available in the student handbook.

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