McCombs School of Business University of Texas at Austin STRATEGIC MANAGEMENT OPTION II MBA COURSE OVERVIEW Professor David B.

Jemison CBA 3.232 Telephone 471-8757 David.Jemison@mccombs.utexas.edu Texts:

Professor Jemison Spring 2004

Hamel, Gary and C. K. Prahalad. Competing for the Future. (Boston: Harvard Business School Press, 1994). Porter, Michael E. Competitive Strategy. (New York: Free Press, l998). Course Description

Perspective and Themes This course is about the creation and maintenance of a long-term vision for the organization. This means that it is concerned with both the determination of strategic direction and the management of the strategic process. As such, it deals with the analytical, behavioral, and creative aspects of business simultaneously. The course is organized around six themes in strategic management: the role of the general manager, the components of business strategy, corporate strategy development, divisional-level strategy development, managing strategic change, and the development of general managers. Our perspective in this course is that of the general manager whose responsibility is the longterm health of the entire firm or a major division. The key tasks involved in general management include the detection of and adaptation to environmental change; the procurement and allocation of resources; the integration of activities across subparts of the organizations; and, at the most senior levels, the determination of purpose and the setting of corporate direction. General managers, from our perspective, are managers who are in the position to make strategic decisions for the firm. Note that such managers are not generalists in the sense that they need to know a little bit of everything, but not very much of anything. To be effective, general managers need to have in-depth understanding of the generic problems in all the relevant functional areas. Furthermore, they must be able to deal with problems and issues at the level of the total enterprise and its relationships with relevant external environments. Functional specialists can benefit from the general management perspective even though they may not be general managers. Every functions actions should be coordinated with the overall needs of the business. In fact, functional specialists are the people on whom general managers must rely to implement their strategies. Since such functional managers can be subject to suboptimizing pressure, they too need to understand the general managers perspective.

2 Components of the Course The pervasive concept in this course is that of strategy. We will start our study of strategy at the business level and examine the challenges of managing a firm competing in a single industry. An integral part of this study will be an exploration of the components of strategy and how they vary among various settings and situations. In most large and medium-sized firms, corporate strategy is different from business strategy because of the multiplicity of businesses in which the firm is involved. We will explore the differences in corporate and business-level (or divisional-level) strategies and the requirements each places on managers at different levels in the firm. At each level of strategy, competitive strategy considerations will be considered. Successful general managers are highly competent in problem identification and analysis and have a strong action orientation. One purpose of this course is to provide an environment that will allow you to hone these skills, while at the same time gain a conceptual understanding of the strategic managers task. Strategic management is more than analysis. To be sure, strategic analysis is a major part of this course, and we will explore and apply several analytical techniques for positioning a firm or a business unit within a competitive environment. But strategic analyses are complicated by the trade-offs inherent in any situation. These trade-offs reflect the fact that organizations consist of many players with multiple, competing objectives. When dealing with these trade-offs, general managers must confront the judgmental issues involved in establishing organizational purpose and balancing economic and noneconomic objectives. To the extent possible in each class, we will attempt to balance these trade-offs and to test our ideas about the appropriate relationships among them. Finally, strategic management requires moving beyond analysis and trade-offs into the realm of strategic action. Once the analytical problem of selecting a business or corporate strategy has been dealt with, we should know what to do. Knowing how to execute the selected strategy is essential to success. To the extent possible in each case, we will concern ourselves with the various combinations of systems (for example, information, control, reward, etc.), organization structures, and people necessary to execute a given strategy. We will test our ideas about the relationships between strategy and these other elements as we proceed through the course. General Flow of the Course The assignments are detailed in a later section. Please read through them to get an idea of the specific content of the course and each class meeting. In general, we will start with single-business or dominant-business companies and proceed to multiple-business companies. Similarly, we will begin with basic techniques of analysis and then expand and modify them to fit a range of situations. We will examine many sectors of the economy (for example basic industries, consumer products, service businesses, hybrids). As we proceed through the course, the classes and cases used in them will build on each other in such a way that the knowledge and skills gained in analyzing one session can be used in subsequent cases. Throughout the course we will maintain our concern with both analysis and implementation.

3 Required Readings Two books are required reading for the course. In addition, there are often articles that will be used to support conceptual development for a particular class. Porters Competitive Strategy provides a framework for examining the ways in which industry choice and structure affect strategic decisions. Hamel and Prahalads Competing for the Future explores a set of ideas that encourage consideration of the how and why of industry transformation and strategic regeneration. Addressing the development of strategy requires understanding how firms evolve under the impetus of competition, technology, government action, and other major contextual forces. This in turn requires a deep understanding of the functional strategies associated with marketing, operations, finance, and human resources. Thus, you will need to bring what you have learned in other courses and your career to bear in Strategic Management. Our challenge in this course will be to integrate these functional strategies into overall business, corporate, and division-level strategies and to concern ourselves deeply with the implementation of the chosen strategies. Course Objectives Our course objectives include: 1. Development and reinforcement of a general management point of viewthe capacity to view the firm from an overall perspective in the context of its environment. 2. Development of an understanding of fundamental concepts in strategic management: the role of the general manager, the levels and components of strategy, competitive analysis, and organizational evolution. 3. Integration of the knowledge gained in previous courses and understanding what part of that knowledge is useful to general managers. 4. Development of those skills and knowledge peculiar to general management and the general managers job that have not been covered in previous functional courses. 5. Development of an awareness of the various impacts of external environmental forces on business and corporate strategy. 6. Practice in distinguishing between basic causes of business problems and attendant symptoms. 7. Practice in working out business strategies and implementation plans. 8. Development of habits of orderly, analytical thinking and skill in reporting conclusions effectively in both written and oral form. 9. Familiarity with some of the practical realities of running different types of businesses.

4 COURSE PERFORMANCE MEASURES AND FEEDBACK Performance evaluation and feedback will be based on your performance in two different settingsclass participation and written work. Class Participation In a typical class, one or more students will be asked to start the class by answering a specific question or discussing a specific issue. Preparation of the case (including the assignment questions) and associated readings should be sufficient to handle such a lead-off assignment. After a few minutes of initial analysis, we will open the discussion to the rest of the class. As a group, we will then try to complete the analysis of the situation and address the problems and issues presented in the case. We will also spend time talking about the implementation of those recommendations and some of the complexities of effecting change in strategic management situations. Most general managers spend very little time reading and even less time writing reports. The vast majority of their interactions with others are verbal. For this reason, the development of verbal skills is given a high priority in this course. The classroom should be considered a laboratory in which you can test your ability to convince your peers of the correctness of your approach to complex problems, and of your ability to achieve the desired results through the use of that approach. Some of the factors that have an impact on effective class participation are the following: 1. Is the participant a good listener? 2. Are the points that are made relevant to the discussion? Are they linked to the comments of others? 3. Do the comments add to our understanding of the situation? 4. Do the comments show evidence of analysis of the case? 5. Does the participant distinguish among different kinds of data (that is, facts, opinions, beliefs, concepts, etc.)? 6. Is there a willingness to share? 7. Is there a willingness to test new ideas, or are all comments safe? (For example, repetition of case facts without analysis and conclusions or a comment already made by a colleague.) 8. Is the participant willing to interact with other class members? 9. Do comments clarify and highlight the important aspects of earlier comments and lead to a clearer statement of the concepts being covered? The questions above deal with both the process of class participation and (of equal or greater concern) the content of what you say. As will be noted subsequently, class participation will be a major portion of your grade in this course. The appendix to this course description provides additional information on my views of the case method and why it is used so extensively in Strategic Management.

5 Written Assignments for Strategic Management There will be two pieces of written work required for this course, each individually and independently written and described in detail below. The first is an analysis of a case well be studying in the course. The second is a major paper about a strategic issue facing your organization. First Paper The first written assignment is a paper consisting of three parts. The executive summary is a memorandum that should indicate your overall evaluation and that should be developed with the tenets of logic, precision, parsimony, specificity, and good grammar. Bullet sentences are only acceptable if their meaning is unequivocal and specific. (For instance, a bullet stating increase sales is unacceptable. In such an instance, you should state which products you want to increase the sales of, how much the increase should be, and how you will achieve the specific increase.) The executive summary should be constructed after you have completed your full analysis. The second part of the paper concerns the full analysis forming the basis for your evaluation. It should be no longer than 1000 words. It should be carefully constructed to show a logical flow and integrated set of thoughts about the case. Guard carefully against undocumented assertions, failing to examine the monetary (and other resource) implications, neglecting to consider trade-offs and priorities, and against a lack of consideration for the implementation issues. You will need more than one draft in order to achieve the clarity, consistency, and structure necessary for your paper. The third part of the paper concerns a number of exhibits in which you show the application of specific tools (e.g., break-even analysis, cash flow analysis, competitor and/or industry analysis, etc.) Make sure that the exhibits are immediately understandable for a busy executive and that they summarize the key conclusions which you will then use in the second part of the paper to build you complete analysis. You may use as many exhibits as you deem necessary. Make sure you refer to these exhibits in the appropriate places in the analysis part of the paper. NB: Your first written assignment is due Friday, February 6. For matters of style, please refer to the attached checklist which I will use as a general framework for providing feedback on all your written work. Please note for case write-ups: your student number, the assignment title, the date, and the course name should be on the top right corner of the first page only. Do not put your name on the paper, or put case write-ups in folders, or use a cover sheet. Second Paper The second written assignment offers you the opportunity to identify, consider in depth, and address a fundamental strategic issue that you believe that your organization will face in the next five to ten years. The issue you choose to write about is up to you. The primary criterion for selecting it is that you believe it has the potential to materially affect the success and destiny of your organization. This definition is purposely open-ended to allow each person to consider a strategic issue most salient for their firm and in which they are vitally interested. Although the definition of the strategic issue is up to you, examples for any particular organization might include business strategy content, corporate portfolio mix, executive succession, strategic management processes, responding to technological change, major shift in customer needs or capabilities, globalization of the industry, or changing workforce capabilities.

6 In this assignment I expect you to be a problem finder as well as a problem solver. I am interested in how you identify and define the issue. But, in addition, I want you to make a reasoned, well-argued prediction of the potential impact of the issue, address ways in which it can be dealt with, identify the impact of those actions on the organization as well as the issue, and address the implications for managers who choose to ignore it. Beyond considering the strategic (and operating) implications of any issue you choose, your paper should address extant theories that may prove useful to your organization in understanding the issue, addressing the issue, or coping with the consequences of their actions. Sources of data for this paper are at your discretion. Clearly, field data from interviews and public and corporate documents will be important sources of information. Beyond this, I expect you to link your observations, findings, and recommendations to the theories and concepts you find appropriate from those we discuss in this class or in other classes. Armchaired analyses and recommendations without conceptual backup arent very powerful. They are neither analytically complete nor do they reflect an understanding of the subtleties that would increase the likelihood that your recommendations will address the issue youve identified. Beyond that, they do not reflect well on your capabilities as an effective manager. I expect your sources to be appropriately referenced in the paper. Interviews where anonymity was promised can be referenced accordingly. In the event that proprietary information is necessary for your paper, I will gladly sign a nondisclosure agreement. To make sure that we stay on track, I would like you to submit to me a one- to two-page prospectus of your study no later than Saturday, January 24. (Its OK to submit it anytime before then.) The typed prospectus must present a clear statement of the strategic issue you chose, why you chose it, and the plan of study you propose. I will return the prospectus with my comments by mail during the following week. The final paper is due no later than the beginning of our final class session on Saturday, April 17, 2004. Late papers will be accepted only in the event of personal emergency. Im anxious for you to use this assignment to creatively explore an aspect of your organization that you find particularly important and interesting. My belief is that you should choose an issue that is strategically salient and for which your analysis and study will make a material difference in the future of the firm. The actual paper is limited to twenty-five pages of text, double-spaced with normal margins. Note that it is not necessary to write thirty pages. Any exhibits you find appropriate to include are in addition to this. Dont forget to reference your sources properly. The paper should include a one-page executive summary of the observations, recommendations, and conclusions in your paper. Also, be sure to put your name, not your student number, on this paper. Grading Policies The purpose of grading in Strategic Management, as in all courses, is twofold. One is to evaluate your performance for purposes of the academic system. The other (and more important) is to provide you with feedback on your ability to develop, utilize, and share your ideas and conclusions concerning the topics and situations covered in the course. To help you do that more effectively, you might want to review the attached checklist, which I will use as a general framework for providing feedback on your written work.

7 Your grade for the course will be based on the following components: First Individual paper Second Individual paper Class participation 30% 40% 30% 100%

Other Administrative Details Since faculty members tend to have somewhat different expectations as to class behavior and course norms, Id like to outline a few of my expectations concerning such matters. 1. I plan to be prepared for every class and I hope you will do the same. Since I frequently call on individuals whose hands are not raised, you should let me know before the start of the class if some emergency has made it impossible for you to be prepared adequately for that class. 2. Given the importance of class participation, I will seek to learn your names as quickly as possible. To facilitate that, I ask you to use a name card for the first several weeks of the course and will circulate a seating chart during the second class session. 3. I will be happy to discuss the course, your progress, or any other issues of interest to you on an individual basis. Please see me in class or call to set up an appointment. My office number is on the front of the course description. Feel free to call me at home, 329-0340. 4. Group work is acceptable and encouraged for purposes of general case preparation. However, the individual written assignments must be solely your own work. Do not use study groups to discuss or prepare for the individual written assignments in any way. 5. NB: Written work is due no later than the beginning of the class session during which the case will be discussed. Late papers will be accepted only in the event of personal emergency.

8 I. The Role of the General Manager Session 1. Friday, January 9, 2004 8:00-12:00 Reading: Goleman, Leadership that Gets Results, Harvard Business Review, Mar-Apr 2000, pp. 78-90. Case: Yellowtail Marine

Well begin our study of strategic management with a case that will highlight many of the concepts and issues I plan to focus on this semester. Robyn Gilcrist, a recent MBA, has agreed to take a job as Chief Operating Executive of a pleasure boat firm in San Diego. Gilcrist must in rapid succession assess the situation and decide on specific actions in many areas of the firm. Her actions will not only affect Yellowtails near-term survival and long-term strategy but her own career as well. Preparation Questions: 1. What is the situation facing Ms. Gilcrist in her job at Yellowtail? 2. What should Gilcrist do: - in the first three days - in the first three weeks - in the first three months ........................ Readings: Hamel and Prahalad, Chapter 4 Competing for Industry Foresight Porter, Chapter 1, The Structural Analysis of Industries Chapter 2, Generic Competitive Strategies Courtney, Kirkland, and Viguerie, Strategy Under Uncertainty, Harvard Business Review, November-December 1997, pp. 66-79. Collins & Porras Building Your Companys Vision, Harvard Business Review. SeptemberOctober 1996. Case: Introductory Note to DAAG Europe (9-374-036) DAAG Europe (A) (9-374-037)

Robert Pelz has spent several years translating the strategic vision he has for his firm into reality. But as this evolves, he encounters several problems at the corporate, divisional, and subsidiary levels. Well focus on how general managers balance their situations as they simultaneously try to manage their strategy, their part of the organization, and their careers. Preparation Questions: 1. 2. 3. 4. How did DAAG Europe arrive at its present difficulties? What actions should corporate management take? What should Dr. Pelz do? Appraise Dr. Pelz as a Manager.

9 II. The Concept of Business Strategy Session 2. Saturday, January 10, 2004 1:00-5:00 Readings: Hamel and Prahalad, Chapter 1, Getting Off the Treadmill Porter, Chapter 2, "Generic Competitive Strategies" Porter, Chapter 3, "A Framework for Competitor Analysis" Porter, Chapter 4, "Market Signals" Porter, Chapter 5, "Competitive Moves" Crown Cork & Seal in 1989 (9-793-035, rev. April 4, 2002)

Case:

This is the third update of the classic CC&S case. The first covered the company up to 1964. At that time, Connelly had turned a very sick company around. A major issue for discussion was whether success would continue. This case describes CC&S up through 1989, and the issue of continued success is still important. One of the things that makes a general manager's job interesting is that the issue never goes away. We will be concerned with both business strategy and industry dynamics in this case. Continuing consolidation in the industry raises the question of whether CC&S should become a bidder in the apparent sale of Continental Can. Management style also becomes an issue in this case. Connelly's style is evident from the case. You may want to compare Connelly with other general managers you will meet in the cases. Why are some more successful than others? How can managers with such different styles be successful?

Preparation Questions: 1. 2. What are the industry structure and dynamics of the metal container industry? What are the industry trends? Implications of these trends? What strategy does CC&S have for competing in this industry? What advantages does a firm the size of CC&S have for competing with American Can and Continental Can? How do you explain the comparison shown in Exhibit 5 of the case? In some sense, a competitive strategy describes the amount and types of risk that a company is willing to take. What is CC&S's "risk profile"? What are the major issues that William Avery faces in 1989? What advice would you offer him about these issues?

3. 4.

10 Session 3. Saturday, January 24, 2004 8:00-12:00 Reading: Porter, What is Strategy? Harvard Business Review, November-December 1996. Ghemewat, P. Sustainable Advantage, Harvard Business Review. September-October 1986, 53-58. Christensen and Raynor, Why Hard Nosed Executives Should Care About Management Theory, Harvard Business Review. September, 2003. Porter, Ch. 7, Structural Analysis Within Industries Case: Matching Dell The Matching Dell case provides an interesting context for evaluating the sustainability or imitation of a competitive advantage. Dell has developed an innovative strategy that has revolutionized the PC industry. The case allows to identify the sources of competitive advantage of Dell. Rivals such as Gateway, Compaq, and HP stand eager to imitate Dells strategy. Will they succeed? Preparation Questions 1. How and why did the personal computer industry come to have such low average profitability? 2. Why has Dell been so successful? What are its sources of competitive advantage? 3. Prior to the recent effots by competitors to match Dell (1997-98), how big was Dells competitive advantage? Specifically, calculate Dells advantage over Compaq in serving the corporate customer. 4. How effective have competitors been in responding to the challenge posed by Dells advantage? How big is Dells remaining advantage? 5. Beyond imitation, are there any other threats to Dells competitive advantage? Reading: Kim and Mauborgne, Value Innovation: The Strategic Logic of High Growth, Harvard Business Review, January-February 1997, pp. 103-112. Drucker, The Theory of the Business, Harvard Business Review, Sept-Oct 1994, pp. 95-107.

Case:

The Evolution of the Circus Industry (Case A)

Firms sometimes find themselves in situations where there seems to be little opportunity for developing incremental improvements in their value propositions because of the extant (or perceived) structure of the industry. When faced with this dilemma one approach to improving a firms strategic situation is that of value innovation, creating very different configurations of their value proposition. On its face the profitability of the circus industry seems to be unattractive. Overall attendance and audience growth is declining, it has an unprofessional image and growing segments of the population are concerned about the exploitation of animals. Preparation Questions: 1. Using the Industry Competitive Analysis framework assess the attractiveness of the circus industry as described in Case A? 2. On what factors did the traditional circus companies compete? What do you like or dislike about the traditional circus? PROSPECTUS FOR STRATEGIC ISSUE PAPER DUE TODAY

11 Session 4. Friday, February 6, 2004 1:30-5:30 Readings: Hamel and Prahalad, Chapter 5, Crafting Strategic Architecture Porter, Ch. 8, Industry Evolution DeGeus, The Living Company, Harvard Business Review, March-April 1997, pp. 51-59. Schaeffer, The Leadership Journey, Harvard Business Review, October 2002, pp. 4347. Asahi Breweries, Ltd.

Case:

The importance of general manager involvement in corporate renewal and strategic repositioning is an important issue for firms. The Asahi case lets us focus on the role of a newly arrived general manager in revitalizing and repositioning a firm. While the case depicts a Japanese company in transition, the issues that the company and its managers encounter are universal in nature. Preparation Questions: 1. Define the corporate strategy of Asahi Breweries, Ltd. as of 1989. What competitive concepts, economic and noneconomic objectives, key operating policies, and timed sequence of moves characterize the strategic logic of this enterprise? 2. What were the key success factors in the Japanese beer industry? 3. What, specifically, did Messrs. Murai and Higuchi bring to Asahi? How would you characterize their policies, behavior, and contributions? 4. What was the role of the Corporate Identity and Total Quality Control programs in Asahis turnaround? 5. What unresolved policy choices and issues face Asahi and Mr. Higuchi.

........................ The case and associated assignment will be distributed on Saturday, January 24. FIRST WRITTEN ASSIGNMENT DUE

12 III. Corporate Strategic Management Session 5. Friday, February 20, 2004 8:00 12:00 Burgelman, R.A. Managing the Internal Corporate Venturing Process Sloan Readings: Management Review, Winter 1984, pp. 33-48. Chesbrough, Making Sense of Corporate Venture Capital, Harvard Business Review, March 2002, 90-99. Luehrman, T. A. Strategy as a Portfolio of Real Options, Harvard Business Review, September-October 1998, pp. 89-99. Prahalad and Hamel, Chapter 6, Strategy as Stretch. Case: M-Tronics (9-396-178)

Many firms operate in a variety of different businesses, each of which contributes in different ways to the overall corporate strategy. This case introduces us to questions of managing this dynamic balance and how that relates to new ideas and internally developed diversification opportunities. Preparation Questions: 1. What is troubling George McElroy? 2. Should Mr. Martell be concerned about same issues? 3. What actions should Mr. Martell take at this time? Please be as specific as possible. Reading: Cases: Porter, Chapter 11, The Transition to Industry Maturity Hanson Plc Note on Leveraged Buyouts (9-389-218, rev. 3/11/92) Berkshire Partners (9-391-091)

Preparation Questions: There are a variety of approaches to developing and implementing a corporate strategy. To gain some more insights into this issue we will begin to look at intangible skills as key resources by examining Hanson, a celebrated conglomerate, and Berkshire Partners, an LBO partnership in the eighties. Hanson is examined in light of its evolution and the possibility of further growth. Berkshire Partners is examined in 1990 at the height of the LBO boom having invested about $1.5 billion in 26 companies since its founding in 1984. As you read the cases pay close attention to the corporate systems, structures, and procedures each firm uses. 1. What value do conglomerates and LBO partnerships contribute to their business units? 2. How do they organize to realize that value? 3. What are the important differences between these two forms of corporate organizations? 4. Are these valid corporate strategies?

13 Session 6. Saturday, February 21, 2004 1:00-5:00 Readings: Hamel and Prahalad, Chapter 7, Strategy as Leverage Hamel and Prahalad, Chapter 9 (pp. 202-212) Haspeslagh and Jemison, Acquisitions: Myths and Reality, Sloan Management Review, Spring 1987.

Case: Grand Junction The entrepreneurs dream is often to develop a company to a point where one either takes it public or sells the firm to another company. This case gives us the opportunity to explore these questions in a high tech start-up. Preparation Questions: 1. Given the representations that Charney and other senior managers had made to several newly hired key employees, should they meet with these people to explain their consideration of the Cisco offer before making a decision? If Grand Junction decides to be acquired, how should Charney and his management team inform their employees? 2. What do you think of Charneys final offer? Is it a fair valuation for Grand Junction? Explain your reasoning. 3. From the perspective of the senior management and Board of Cisco Systems, evaluate the final offer. Should Cisco accept this offer? Why? 4. Should Grand Junction go public or be acquired? Why? Evaluate the issue from the perspective of each of the stakeholders in Grand Junction.

14 Session 7. Saturday, March 6, 2004 8:00-12:00 Readings: Bower, Not all M&As are Alike and That Matters, Harvard Business Review, March-April 2001. Dierickx, I. and M. Koza Information Asymmetries: How Not to Buy a Lemon in Negotiating Mergers and Acquisitions, European Management Journal, Vol. 9, No. 3. September 1991, pp. 229-234. Jemison and Sitkin, Acquisitions: The Process Can Be a Problem, Harvard Business Review, March-April, 1986. Rappaport Strategic Analysis for More Profitable Acquisitions, Harvard Business Review, July-August 1979. Haspeslagh & Jemison: A Framework for Assessing an Acquisitions Attractiveness. (Choose relevant parts of the Appendix as you consider Nestl and Rountree.) Nestl Rountree (A)

Case:

Nestl is the worlds largest food company and in 1988 it was considering acquiring Rountree which, if consummated, would be the largest-ever takeover of a British company. Our case today is set in April 1988, immediately after Jacob Suchard has acquired 15% of Rountrees stores in a dawn raid. Our primary focus in class will be to think through how Nestl should respond to this move by Suchard. To do that adequately, we must first focus on the industry and Nestls strategy. Preparation Questions: 1. How attractive is the chocolate industry for further investment? Are the reasons which led Helmut Maucher in the early 1980s to define confectionery as a strategic priority still valid? 2. Why has Rountree emerged as a takeover target? 3. What are the potential strategic benefits of Rountree for Nestl? What are the potential strategic benefits of Rountree for Suchard? 4. As Nestl, do you want to purchase Rountree shares? What price are you willing to pay? Our class format today will be different from earlier in the semester. You'll be a member of a team that will assume the roles of a Nestl Acquisition Task Force (headed by Helmut Maucher, the CEO) and make a presentation to the Nestl Comit du Conseil (Board of Directors) to recommend a decision on Rowntree plc. Team assignments and instructions will be distributed at the beginning of class. Note that during our class today you will be asked to be a member of both the Nestl Comit du Conseil as well as a member of a Nestl Acquisition Task Force headed by Helmut Maucher, the CEO. The preparation questions above should help you prepare for both roles.

15 Session 8. Friday, March 19, 2004 1:30-5:30 Case: ENRON, 1986 - 2001 (MEDIA) UVA-G-0563M Reading: Handy, Whats a Business For? Harvard Business Review, December 2002. Our class today will be devoted to an in-depth study of the history, evolution, ascension, and fall of Enron. Each of us has followed the Enron saga as it has unfolded. But careful, critical thinking about the range of issues associated with strategy, leadership, competitive advantage, and corporate transformation may not be the mainstay of most journalistic sources we find time to use. To facilitate our study of Enron well use a very recent case, written by two professors at the Darden School. The case, in CD/ROM format, offers a myriad of opportunities to explore Enrons situation. The case writers had unparalleled access to Enron before their fall. They have developed case material that will allow us to start at the beginning and explore the evolution of the firm from its transformation from zenith to bankruptcy. In preparing for our class, please explore these questions: 1. How and why did Enron transform itself between 1986 and 2000? Was Enron really an innovative company? Why or why not? 2. Evaluate Enrons two strategies in the 1990s to develop asset-light businesses in the US and asset-intensive businesses internationally. What resources and capabilities are essential for each of these strategies to be successful? 3. What are the lessons for other corporations from the rise and fall of Enron especially regarding corporate transformation and a strategy based on innovation? 4. What elements of Enrons strategy led to its downfall? 5. Firm strategy stems from leadership, values, vision, competitive positioning, and development of capabilities? Why was there a dramatic breakdown for Enron in 2001? Be sure to read and reflect on the document Critical Thinking About the Enron Story that is found in the Analysis Guide Tab. To view the case, please insert the CD/ROM in the CD drive of your computer. Then right click on the CD icon on your desktop (or My Computer) and click on Open. Alternatively you can double click on your CD icon. Another option in Windows is to click on the Start button at the lower lefthand corner of your screen. Then click on Run. At the request for program location enter the letter of your CD drive, followed by :\setup.exe. This will take a moment to install the viewing program on your computer. You may then open the case.

16 IV. Managing Strategy Implementation and Strategic Change Sessions 9 & 10. Friday, April 2, 2004 8:00-12:00, 1:30-2:45 Readings: Bennis and OToole, Dont Hire the Wrong CEO, Harvard Business Review, MayJune 2000, pp 171-176. Coutu, The Anxiety of Learning, Harvard Business Review, March 2002, pp. 100-106. Cross and Prusak, The People Who Make Organizations Go or Stop, Harvard Business Review, June 2002, 105-112. Gabarro, John, When a New Manager Takes Charge, Harvard Business Review, MayJun 1989. Meg Whitman at eBay Inc. (A) 9-401-024

Case

During the past ten years we all watched as the internet was hyped and rehypedthen alas, the bubble burst. But for a few firms the fun continues. eBay is arguably one of the successful firms of the last ten years and may be the most successful internet-based firm to date. It grew from an idea of online collaboration to the world's largest and most successful online auction house. This case will give us some insights on how this happened, what may lay in store for eBay, and more importantly how some of these ideas may apply to your firms. Preparation Questions: 1. 2. 3. 4. Why is eBay successful? What are the growth pressures that Meg Whitman is facing? How do you assess Meg Whitman as a CEO? What should eBay do about Kruse?

17 Sessions 9&10 (continued) Readings: Eisenhardt and Galunic, Coevolving: At last a way to make synergies work. Harvard Business Review, January-February 2000, 91-101. Hamel and Prahalad, Chapter 8, Competing to Shape the Future Hamel and Prahalad, Chapter 9, Building Gateways to the Future Millennium Pharmaceuticals (A) 9-600-038

Case:

The pharmaceutical industry has been turned on its head in the past several years. The primary science base has evolved from organic chemistry to genomics. In addition, many large pharmaceutical companies are seeing substantial competition from smaller, more focused firms. The Millennium Pharmaceuticals case gives us the opportunity to explore the issues of using alliances to grow a firm, managing when an industry paradigm changes rapidly, and developing and keeping the talent necessary for competitive success. Preparation Questions: 1. On what basis has Millennium historically competed? 2. How does Millennium plan to compete going forward? 3. As CEO Marc Levin, would you pursue the Lundberg alliance?

Case:

Cleveland Twist Drill (A) (4-384-083)

Declining industries provide one of the most basic challenges for general managers trying to introduce strategic change. Well begin our study of managing strategic change by focusing on Jim Bartlett, the new president of CTD as he tries to decide how to bring about the broad changes required to make his firm competitive again. Preparation Questions: 1. What are the major problems facing Jim Bartlett at Cleveland Twist Drill? How serious is the situation? 2. As Bartlett, what is your detailed plan of action for accomplishing the objectives that you and Ames have for the business? 3. Which of the three options that Bartlett was considering in April 1982 would you pursue? Why? Are there others that make more sense given his objectives?

18 Sessions 11 & 12. Saturday April 17, 2004 10:30-12:30 Readings: Hagel and Singer, Unbundling the Corporation, Harvard Business Review, March-April 1999. Maletz & Nohria, Managing in the Whitespace, Harvard Business Review, February 2001, pp.103-111. Hamel and Prahalad, Chapter 12, Thinking Differently

Recommended Readings: Bartlett and Ghoshal, Changing the Role of Top Management: Beyond Strategy to Purpose, Harvard Business Review, November-December 1994, pp. 79-88. Porter, Chapter 16, Entry into New Businesses Uyterhoeven, H. General Managers in the Middle, Harvard Business Review, Sept-Oct 1989. Cases: Johnson & Johnson (A) Johnson & Johnson (B) 9-384-053 9-384-054

Johnson & Johnson is a very successful company that seems to have instilled a strong belief in decentralization and to have created a strong management culture. These two factors in the firms past success play an important role in the options Pete Ventrella has as he is charged with creating a new unit in the firm more responsive to the changing competitive environment. Well also see a short videotape of James Burke, J&Js Chairman, as he discusses the companys philosophy and culture with a Harvard AMP class. Preparation Questions 1. James Burke is quoted, Our culture is really it. Just what is the J&J culture and what difference does it really make for the company? 2. What do you think about the way in which Burke and Clare have brought about the creation of the Hospital Services Group? 3. What problems does Pete Ventrella face? 4. What should Ventrella do about hospital services as a cost or profit center? About the differences with Ethicon over inventory placements?

19 APPENDIX: THE USE OF CASES IN STRATEGIC MANAGEMENT WHY WE USE THE CASE METHOD1 The case method is one of the most effective means of management education. It is widely used in schools of business throughout the world, and this use is predicated upon the belief that tackling real business problems is the best way to develop practitioners. Real problems are messy, complex, and very interesting. Unlike other pedagogical techniques, many of which make you the recipient of large amounts of information but do not require its use, the case method requires you to be an active participant in the closest thing to the real situation. It is a way of gaining a great deal of experience without spending a lot of time. It is also a way to learn a great deal about how certain businesses operate, and how managers manage. There are few programmable, textbook solutions to the kinds of problems faced by real general managers. When a problem becomes programmable, the general manager gives it to someone else to solve on a repeated basis using the guidelines he or she has set down. Thus the case situations that you will face will require the use of analytical tools and the application of your personal judgment. Sources of Cases All the cases in this course are about real companies. You will recognize many of the names of the companies although some of them may be new to you. These cases were developed in several different ways. Occasionally, a company will come to a business school professor and request that a case be written on that company. In other situations, a professor will seek out a company because he or she knows that the company is in an interesting or difficult situation. Often, the company will agree to allow a case to be written. Occasionally, cases will be written solely from public sources. This is perhaps the most difficult type of case writing because of the lack of primary data sources. In those situations where a company has agreed to have a case written, the company must release the case. This means that they have final approval of the content of a given case. The company and the case writer are thus protected from any possibility of releasing data that might be competitively or personally sensitive. Public source cases, obviously, do not need a release. Given the requirement for release, however, it is amazing the amount of information that companies will allow to be placed in a case. Many companies do this because of their belief in the effectiveness of the case method. Preparing for Class When you prepare for class, it is recommended that you plan on reading the case at least three times. The first reading should be a quick run-through of the text in the case. It should give you a feeling for what the case is about and the types of data that are contained in the case. For example, you will want to differentiate between facts and opinions that may be expressed. In every industry, there is a certain amount of conventional wisdom that may or may not reflect the truth. On your second reading you should read in more depth. Many people like to underline or otherwise mark up their cases to pick out important points that they know will be needed later. Your major effort on a second reading should be to understand the business and the situation. You should ask yourself questions like: (1) Why has this company survived? (2) How does this business work? (3) What are the economics of this business?

This note was prepared by Associate Professor Dan R.E. Thomas. It is intended solely as an aid to class preparation.

20 On your second reading, you should carefully examine the exhibits in the case. It is generally true that the case writer has put the exhibit there for a purpose. It contains some information that will be useful to you in analyzing the situation. Ask yourself what the information is when you study each exhibit. You will often find that you will need to apply some analytical technique (for example, ratio analysis, growth rate analysis, etc.) to the exhibit in order to benefit from the information in the raw data. On your third reading, you should have a good idea of the fundamentals of the case. Now you will be searching to understand the specific situation. You will want to get at the root causes of problems and gather data from the case that will allow you to make specific action recommendations. Before the third reading, you may want to review the assignment questions in the course description. It is during and after the third reading that you should be able to prepare your outlined answers to the assignment questions. There is only one secret to good case teaching and that is good preparation on the part of the participants. Since the course has been designed to build as it progresses, class attendance is also very important. Class Discussions In each class, I will ask one or several people to lead off the discussion. If you have prepared the case, and are capable of answering the assignment question, you should have no difficulty with this lead-off assignment. An effective lead-off can do a great deal to enhance a class discussion. It sets a tone for the class that allows that class to probe more deeply into the issues of the case. The instructors role in the class discussion is to help, through intensive questioning, to develop your ideas. This use of the Socratic method has proved to be an effective way to develop thinking capability in individuals. The instructors primary role is to manage the class process and to insure that the class achieves an understanding of the case situation. There is no single correct solution to any of these problems. There are, however, a lot of wrong solutions. Therefore, I will try to come up with a solution that will enable us to deal effectively with the problems presented in the case. After the individual lead-off presentation, the discussion will be opened to the remainder of the group. It is during this time that you will have an opportunity to present and develop your ideas about the way the situation should be handled. It will be important for you to relate your ideas to the case situation and to the ideas of others as they are presented in the class. The instructors role is to help you do this. The Use of Extra- or Post-Case Data You are encouraged to deal with the case as it is presented. You should put yourself in the position of the general manager involved in the situation and look at the situation through his or her eyes. Part of the unique job of being a general manager is that many of your problems are dilemmas. There is no way to come out a winner on all counts. Although additional data might be interesting or useful, the Monday morning quarterback syndrome is not an effective way to learn about strategic management. Therefore, you are strongly discouraged from acquiring or using extra- or post-case data. Some case method purists argue that a class should never be told what actually happened in a situation. Each person should leave the classroom situation with his or her plan for solving the problem, and none should be falsely legitimized. The outcome of a situation may not reflect what is, or is not, a good solution. You must remember that because a company did something different from your recommendations and was successful or unsuccessful, this is not an indication of the value of your approach. It is, however, interesting and occasionally useful to know what actually occurred. Therefore, whenever possible, I will tell you what happened to a company since the time of the case, but you should draw your own conclusions from that.

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STRATEGIC MANAGEMENT References In addition to the course readings, the following books and articles are listed here to supplement your readings on the concepts and problems I explore in the course. Books: Allison, Graham T. Essence of Decision. (Boston: Little, Brown, 1971.) Amram, Martha and Nalin Kulatilaka. 1998. Real Options: Managing Strategic Investment in an Uncertain World. Boston: Harvard Business School Press. Andrews, Kenneth R. The Concept of Corporate Strategy. (Homewood, IL: Dow Jones-Irwin, 1971.) Barnard, Chester I. The Functions of the Executive. (Cambridge: Harvard University Press, 1938.) Bartlett, Christopher A. and Sumantra Ghoshal. 1998, 2nd edition. Managing Across Borders: The Transnational Solution. Cambridge: Harvard Business School Press. Beamish, Paul W. 1998. Strategic Alliances. Cheltenham: Elgar Publishing. Bennis, W. and B. Nanus. Leaders: The Strategies for Taking Charge, Harper & Row: New York, l985. Besanko, David, David Dranove, and Mark Shanley. The Economics of Strategy. New York: John Wiley, 1995 Block, Zanas and Ian C. MacMillan. 1993. Corporate Venturing. Cambridge: Harvard Business School Press. Brandenburger, Adam and Barry Nalebuff. Co-opetition. New York; Doubleday, 1996 Brown, John Seely and Paul Duguid. 2000. The Social Life of Information. Boston: Harvard Business School Publishing. Brown, Shona L. and Kathleen M. Eisenhardt. Competing on the Edge. (Boston: HBS Press, 1998). Burgelman, R. and L. Sayles. Inside Corporate Innovation, Free Press: New York, 1986. Caves, Richard. American Industry: Structure, Conduct, Performance. Third Edition. (Englewood Cliffs, NJ: Prentice-Hall, 1972.) Chandler, Alfred D., Jr. Strategy and Structure. (New York: Doubleday, 1966.) Chandler, Alfred D., Jr. Scale and Scope. Cambridge: Harvard University Press). Christensen, Clayton M. 1997. Innovators Dilemma: When New Technologies Cause Great Firms to Fail. Boston: Harvard Business School Press. Cyert, Richard M. and James G. March. A Behavioral Theory of the Firm. (Englewood Cliffs, NJ: Prentice-Hall, 1963). DAveni, Richard A. Hypercompetition: Managing the Dynamics of Strategic Maneuvering. (New York: Free Press, 1994). De Geus, Arie P. 1997. Living Company. Boston: Harvard Business School Press.

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Doz, Yves and Gary Hamel. Alliance Advantage: The Art of Creating Value Through Partnering. Boston: HBS Press, 1998). Drucker, Peter F. Management: Tasks, Responsibilities, and Practices. (New York: Harper and Row, 1974). Evans, Philip and Thomas S. Wurster. 1999. Blown to Bits: How the New Economics of Information Transforms Strategy. Boston: Harvard Business School Publishing. Gouillart F.J. and J.N. Kelly. 1995. Transforming the Organization. New York: McGraw Hill. Hamel, Gary. 2000. Leading the Revolution. Boston: Harvard Business School Publishing. Handy, Charles. 1991. Age of Unreason. Boston: Harvard Business School Press. Haspeslagh. Philippe C. and David B. Jemison. Managing Acquisitions: Creating Value Through Corporate Renewal. (New York: Free Press, 1991). Hayes, Robert H. and Steven C. Wheelwright. Restoring Our Competitive Edge: Competing Through Manufacturing. (New York: John Wiley & Sons, 1984). Henderson, Bruce D. Henderson on Corporate Strategy. (Cambridge: Abt Books, 1979). Komisar, Randy and Kent L. Lineback. 2000. The Monk and the Riddle: The Education of a Silicon Valley Entrepreneur. Boston: Harvard Business School Publishing. Kotter, J. The General Managers, Free Press: New York, 1982. Leavitt, Harold J. Corporate Pathfinders. (Homewood, IL: Dow Jones-Irwin, 1986). Leonard, Dorothy. 1997. Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation. Boston: Harvard Business School Press. Markides, Constantinos. 1999. All the Right Moves: A Guide to Crafting Breakthrough Strategy. Boston: Harvard Business School Publishing. Miles, Raymond E. and Charles C. Snow. Organizational Strategy, Structure, and Process. (New York: McGraw-Hill, 1978). Nelson, Richard and Sidney Winter. 1982. An Evolutionary Theory of Economic Change. Cambridge: Harvard University Press. Nohria, N. and R. Eccles. 1993. Networks and Organizations. (Cambridge: Harvard Business School Press). Pfeffer, Jeffrey and Robert I. Sutton. 1999. The Knowing-Doing Gap: How Smart Companies Turn Knowledge into Action. Boston: Harvard Business School Publishing. Porter, Michael. Competitive Strategy. (New York: Free Press, 1981). , Competitive Advantage. (New York: Free Press, l985). Prigogine, Ilya. 1997. The End of Certainty: Time, Chaos, and the New Laws of Nature. New York: The Free Press. Quinn, James Brian. Strategies for Change: Logical Incrementalism. (Homewood, IL: Richard D. Irwin, 1980).

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Rappaport, Alfred. 1998, 2 edition. Creating Shareholder Value: A Guide for Managers and Investors. New York: Free Press. Rogers, Everett M. 1995, 4th edition. Diffusion of Innovations. New York: Free Press. Rothschild, William E. Strategic Alternatives: Selection, Development, and Implementation. (New York: Amacom, 1979). Rumelt, Richard P. Strategy Structure and Economic Performance. (Boston: Division of Research, Graduate School of Business Administration, Harvard University, 1974). Salter, Malcolm S. and Weinhold, Wolf A. Diversification Through Acquisition. (New York: Free Press, 1979). Sayles, L. Leadership: What Effective Managers Really Do and How They Do It, McGraw-Hill: New York, 1979. Schelling, Thomas C. The Strategy of Conflict. (London: Oxford University Press, 1960.) Selznick, P. Leadership in Administration, Row, Peterson and Company: Evanston, IL, 1957. Summer, Charles E. Strategic Behavior in Business and Government. (Boston: Little, Brown and Company, 1980). Tichy, N. and DeVanna, M. The Transformational Leader, John Wiley & Sons: New York, 1986. Tushman, Michael L. and Charles A. OReilly III. 1996. Winning Through Innovation: A Practical Guide to Leading Organizational Change and Renewal. Boston: Harvard Business School Press. Yergin, Daniel and Joseph Stanislaw. 1999. The Commanding Heights: The Battle Between Government and the Marketplace That Is Remaking the Modern World. Touchstone. Articles: Amram, Martha and Nalin Kulatilaka. 1999. Disciplined Decisions: Aligning Strategy With the Financial Markets, Harvard Business Review, Jan-Feb 77(1): 95-104. Banks, Robert L. and Steven C. Wheelwright, Operations vs. Strategy: Trading Tomorrow for Today, Harvard Business Review, May-June 1979. Bartlett, Christopher A. and Sumantra Ghoshal. 2000. Going Global: Lessons from Late Movers, Harvard Business Review, March-April, 132-142. Berg, N., Strategic Planning in Conglomerate Companies, Harvard Business Review, May 1975. Berry, Charles, Corporate Growth and Diversification, The Journal of Law and Economics, October 1971. Bettauer, A., Strategy for Divestments: How to Dispose of Part of the Organization, Harvard Business Review, March 1967. Bettis, Richard A. and William K. Hall, Strategic Portfolio Management in the Multibusiness Firm, California Management Review, Fall 1981. Biggadike, Ralph, The Risky Business of Diversification, Harvard Business Review, May-June 1979.
nd

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Bloom, P. and P. Kotler, Strategies for High Market Share Companies, Harvard Business Review, NovemberDecember 1975. Bourgeois, L. J. and David R. Brodwin, Strategy Implementation: Five Approaches to an Elusive Phenomenon, Strategic Management Journal, July-Sept. 1984. Bowman, Edward H., A Risk/Return Paradox for Strategic Management, Sloan Management Review, Spring 1980. Brown, John Seely and Paul Duguid. 2000. Balancing Act: How to Capture Knowledge Without Killing It, Harvard Business Review, May-June, 73-80. Burgelman, Robert A., A Model of the Interaction of Strategic Behavior, Corporate Context, and the Concept of Strategy, Academy of Management Review, January 1983. , Designs for Corporate Entrepreneurship in Established Firms, California Management Review, XXXVI (Spring l984). Buzzell, R. D., B. T. Gale, and R. G. M. Sultan, Market Share - A Key to Profitability, Harvard Business Review, January-February 1975. Carey, Dennis, moderator. 2000. Lessons from Master Acquirers: A CEO Roundtable on Making Mergers Succeed, Harvard Business Review, May-June, 145-154. Chaudhuri, Saikat and Benham Tabrizi. 1999. Capturing the Real Value in High-Tech Acquisitions, Harvard Business Review, September-October, 123-130. Christensen, Clayton M. and Michael Overdorf. 2000. Meeting the Challenge of Disruptive Change, Harvard Business Review, March-April, 66-76. Collins, Jim. 1999. Turning Goals Into Results: The Power of Catalytic Mechanisms, Harvard Business Review, JulyAugust 77(4): 71-82. Clifford, Donald, Growth Pains of the Threshold Company, Harvard Business Review, September-October 1973. Day, George S., Diagnosing the Product Portfolio, Journal of Marketing, April 1977. Eccles, Robert G., Kersten L. Lanes, and Thomas C. Wilson. 1999. Are You Paying Too Much for That Acquisition?, Harvard Business Review, July-August 77(4): 136-146. Emshoff, James R. and Ian I. Mitroff, Improving the Effectiveness of Corporate Planning, Business Horizons, October 1978. Foreman, Leonard and William Lawrence, The Case Against Corporate Planning, Business Horizons, October 1978. Fredrickson, James and Anthony Iaquinto, Inertia and Creeping Rationality in Strategic Decision Processes, Academy of Management Journal, September 1989, 516-542. Fruhan, William E., Pyrrhic Victories in Fights for Market Share, Harvard Business Review, SeptemberOctober 1972. Ghemawat, Pankaj and Fariborz Ghadar. 2000. The Dubious Logic of Global Megamergers, Harvard Business Review, July-August, 64-72.

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Gluck, F.W., S.P. Kaufman, and A.S. Walleck, Strategic Management for Competitive Advantage, Harvard Business Review, July-August 1980. Greiner, Larry E., Evolution and Revolution as Organizations Grow, Harvard Business Review, July-August 1972. Gulati, Ranjay, Tarun Khanna and Nitin Nohria. 1994. Unilateral Commitments and the Importance of Process in Alliances, Sloan Management Review, Spring. 61-69. Guth, W. D. and R. Taguiri, Personal Executive Values and Corporate Strategy, Harvard Business Review, September 1975. Hall, William K., SBUs: Hot, New Topic in the Management of Diversification, Business Horizons, February 1978. , Survival Strategies in a Hostile Environment, Harvard Business Review, September-October 1980. Hambrick, D.C., and J.W. Fredrickson Are You Sure You Have a Strategy? Academy of Management Executive, November 2001.. Hamermesh, Richard G. and Steven Silk, How to Compete in Stagnant Industries, Harvard Business Review, July-August 1980. Haspeslagh, Philippe, Portfolio Planning: Uses and Limits, Harvard Business Review, January-February 1982. _____ and David B. Jemison, Acquisitions: Myths and Reality, Sloan Management Review, Spring 1987. Hayes, Robert H. and William J. Abernathy, Managing Our Way to Economic Decline, Harvard Business Review, July-August 1980. Hirsh, R. How Success Short-Circuits the Future, Harvard Business Review, 1986, 64 (2), pp. 72-77. Jemison, David B., The Importance of an Integrative Approach to Strategic Management Research, Academy of Management Review, April 1981. Jemison, David B. and Sim B. Sitkin, Corporate Acquisitions: A Process Perspective, Academy of Management Review, January 1987. ______ Acquisitions: The Process Can Be a Problem, Harvard Business Review, March-April, 1986. Khanna, Tarun and Krishna Palepu. 1999. The Right Way to Restructure Conglomerates in Emerging Markets, Harvard Business Review, July-August 77(4): 125-134. Lindblom, Charles E., Still Muddling, Not Yet Through, Public Administration Review, November-December 1979. , The Science of Muddling Through, Public Administration Review, Spring 1959. Lorenzoni G. and C. Baden-Fuller. 1995. Creating a Strategic Center to Manage a Web of Partners, California Management Review, Vol. 37, no.3, 146-163. Melichor and Rush, Evidence on the Acquisition-Related Performance of Conglomerate Firms, Journal of Finance, March 1974. Mintzberg, Henry, The Managers Job: Folklore and Fact, Harvard Business Review, June - August 1975.

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Mintzberg, Henry and James A. Waters, Tracking Strategy in an Entrepreneurial Firm, Academy of Management Journal, September 1982. , Planning on the Left Side and Managing on the Right, California Management Review, July-August 1976. , Strategy-Making in Three Modes, California Management Review, Winter 1973. Perspective1995. How Can Big Companies Keep the Entrepreneurial Spirit Alive? Harvard Business Review, November-December, 183-192. Porter, Michael E., Please Note Location of Nearest Exit: Exit Barriers and Planning, California Management Review, Vol. XIX. , and R. Caves From Entry Barriers to Mobility Barriers..., Quarterly Journal of Economics, May 1977. Quinn, James Brian, Strategic Change: Logical Incrementalism, Sloan Management Review, Fall 1978. , Technological Innovation, Entrepreneurship, and Strategy, Sloan Management Review, Spring 1979. Rappaport, Alfred and Mark L. Sirower. 1999. Stock or Cash? The Trade-Offs for Buyers and Sellers in Mergers and Acquisitions, Harvard Business Review, March-April, 147-158. Scott, Bruce R., Stages of Corporate Development--Part I, Graduate School of Business Administration, Harvard University, Case No. 9-371-294. Spence, A. Michael, Entry, Capacity, Investment and Oligopolistic Pricing, Bell Journal of Economics. Stevenson, Howard H., Defining Corporate Strengths and Weaknesses, Sloan Management Review, Spring 1976. Tilles, S., How to Evaluate Corporate Strategy, Harvard Business Review, July 1973. Uyterhoeven, Hugo, General Managers in the Middle, Harvard Business Review, Sept-Oct 1989. Vancil, Richard F. and Peter Lorange, Strategic Planning in Diversified Companies, Harvard Business Review, January-February 1975. Wheelwright, Steven C. and Robert L. Banks, Involving Operating Managers in Planning Process Evolution, Sloan Management Review, Summer 1979. Wheelwright, Steven C. and Robert H. Hayes, Competing Through Review, January-February l985. Manufacturing, Harvard Business

Wrapp, H.E., Good Managers Dont Make Policy Decisions, Harvard Business Review, September-October 1967. Zaleznik, Abraham, The Human Dilemmas of Leadership, Harvard Business Review, July-August 1963.