Session 1: Introduction

MGCR 423 Strategic Management

Mitali Banerjee, Strategy & Organization

Aug. 30, 2023
This course is about Strategic Management

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Average ROIC 1996-2013

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Average ROIC 1996-2013

What is special about

these companies?

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Profitability of Soft Drinks vs Other Industries

ROA ROE

Merck 8% 17%

US Steel 0% -2%

Coca Cola 16% 30%

* Based on 2011 Financial Statements

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Questions

• Can you make money selling perfect commodities?

• Why does a furniture store offer child-care at its store?
• Is competition always zero-sum?
• Why is google search free?
• Should you make or buy?
• Localization vs. standardization?
• How do you enter an industry with a century old monopoly?

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Learning Objectives
The main goal of this course is to improve…
1) your knowledge of the core concepts of
strategic management
2) your capacity to apply these concepts to
complex business situations
3) your ability to find solutions to solve the
key problems that firms face

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Basics Conceptual Road Map

• Strategic & Competitive Advantage

• Industry & Value Chain Analysis
• Business-level Strategy
– Capabilities
• Competitive Dynamics
• Corporate-level Strategy

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Course Details

• Case-based discussion
• Individual and group assessments

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In-Depth Case

And more…
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Keys to Success in Class

• Attend class.
– If you must miss a class, please email me.
– You will learn the content of the course and, as importantly, the process of analysis
and implementation that is central to successful strategic management.
• Be prepared for each class and ready to contribute.
– The ability to present one's ideas concisely and persuasively, and to respond
effectively to the ideas of others, is a key success factor in any management
position.
– Participation enables you to learn from your colleagues and to help them learn from
you. We expect you to analyze, comment, question, discuss, and build on others'
contributions.
– For the learning process to be effective, you will need to participate actively during
class. Active participation in discussions helps you sharpen your own insights and
those of your classmates.
• Plan ahead and avoid missing important dates.
– Individual and team assignments must be uploaded on time.

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Materials

• Syllabus
• Textbook
– Hitt, Ireland & Hoskisson, Strategic Management Concepts and Cases:
Competitiveness and Globalization, Cengage Learning, 13th Edition
– Recommended but not required; e-book available from the bookstore.
• Cases and required readings
– MGCR 423 Fall 2022 Coursepack
– Electronic course package accessible on myCourses
– Copyright fees of $ $50.40 will show up on your student account.
• Slides
– The topics described in the Course Schedule are supported by slides

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Evaluation

% of final
Category Due Date(s)
grade
Individual Assignment Oct 4th 20

Group Project Nov. 20th 30

Final exam TBA 35

Class Participation 15

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Mid-Term Exam(20%)

• In class quiz based on the content from class lecture

• Multiple Choice Questions
• Oct 4th, 2023
• .

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 Group Project (30%)
• Teams are self-organized and comprised of 5 members from diverse
backgrounds, by September 27th .
– All team members must be within the section you enroll.
– Otherwise you will be randomly assigned to any of the groups with less than 5.
• When selecting a company for the team project, consider both the industry
and the competitive environment, as well as the key value capture
mechanisms employed by the company.
– Your team should choose companies for which sufficient information exists to support the
projects, either from online databases and the popular press or through interviews of local
companies.
– The topic should be well-researched, based on an extensive review of publicly-available
information as well as specialized databases available through the McGill library.
– The company cannot be from one of the cases used in class discussion.
• Instructions for the Group Project will be available on myCourses

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 Group Project (30%)
• One-page precis
– (1) a team number and all team members and (2) the company and strategic issue(s)
that you will examine.
– It will be used for coordination, if necessary, to avoid duplication in different groups
choosing the same company.
– Due on myCourses: Monday, October 16th, 11:59pm EST
• Written report (20%)
– Max of 15-page word document (not including cover page and reference)
– Due on myCourses: Monday, November 20th, 11:59pm EST
• Oral presentation (10%)
– Presentation slide deck & recorded presentations (25 mins in length)
– Due on myCourses: Monday, November 20th 11:59pm EST
– Consulting presentations (22 minutes, tops)
• 5-7 minutes brief overview followed by 15 minutes Q&A
• The dates will be decided in the week of Nov. 7.

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Final Exam (35%)

• During the exam period

• Based on lecture slides, classroom materials, and in-class discussions
• Multiple choice, short answer, and long answer.
• More details will be provided in the course.

• Exam conflicts and absences are handled according to the policies of

the BCom program. Please contact the BCom Office for further
information.

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 Participation (15%)
• Class attendance and participation are not only desired but required.
• Preparation is the most important assignment for the sessions.
– Preparation means that you read the materials, consider the issues raised by the case
and assignment questions, and carry out appropriate quantitative and qualitative
analysis in order to arrive at a thoughtful position concerning the options that face the
firms and managers in the case.
– Preparation also involves developing a personal position on the issues raised in the case
and readings. Unless you have thought about and adopted a personal position, it is
difficult to learn from others' contributions.
• Quality is important!
– Effective participation involves being clear about your own position and defending it,
while also being willing to seek alternative perspectives on the situation. It does not
mean talking simply for the sake of being heard.
– We do not reward those who talk simply for the sake of being heard.
– Some components may be out of people’s comfort zones - be supportive
– I will ensure equity among all voices throughout the course.

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Communication Plan

• Office hours
– By appointment
• E-mail: mitali.banerjee@mcgill.ca

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Next Class

• Basics: Strategy & Competitive advantage

• TX: Ch. 1 Strategic management & competitiveness

• What do you think is strategy?

• Why is it important?
• Features of a good strategy?

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