Managing the Enterprise MGT 490 Syllabus Fall 2014

Managing the Enterprise MGT 490 Syllabus Fall 2014 MGT 490-04 Monday and Wednesday 3:00pm to 4:15pm — Miriam Hall, Room 101 MGT 490-N1 Monday and Wednesday 4:30pm to 5:45pm — Miriam Hall, Room 101

Professor: Diane M. Sullivan, Ph.D. Office Hours: By appointment Office location: SBA, Miriam Hall Room 702 Website: http://academic.udayton.edu/DianeSullivan Phone: 937-229-3705 Email: [email protected]

Objective This course focuses on creating an understanding of how concepts and analytical tools learned in other business courses are integrated in practice to create a unified whole. Students learn how general and top managers gather and use information to influence organizational mission, goals, and strategies. Course typically relies heavily on cases and/or simulation. Further, this course seeks to align understanding managing the enterprise with the Mission of the UD SBA: The School of Business Administration is a learning community committed in the Marianist tradition to educating the whole person and to connecting learning and scholarship with leadership and service in an innovative business curriculum designed to prepare ethical leaders for successful careers in a global business environment.

Text: Hitt, Ireland & Hoskisson (2007). Strategic Management: Competitiveness and Globalization- Concepts, 8th Ed., Thompson South-Western.

Other Materials: Capstone® simulation registration (www.capsim.com).

Grades are comprised of: Assignments Point Value Due Date Individual Assignments CapSim Quiz 70  Monday, September 29, 2014

Experiential/Networking Paper Assignment 100  Within one week after student attends the session Mid-term Exam (all material to mid-term, 100 multiple choice format)  Monday, October 20, 2014 Final Exam (all material from mid-term, multiple 100  10:10am-noon, Tuesday, December 16, 2014 in choice format) O’Leary Auditorium (Block Exam) Team Assignments

Simulation Performance 100  Determined after Round 8 of CapSim processes

CapSim Strategic Plan 100  Wednesday, October 29, 2014  Teams Andrews, Baldwin and Chester: Final Presentation (100-pts) and Peer Evaluations Monday, December 1, 2014 130 (30-pts)  Teams Digby, Erie and Ferris: Wednesday, December 3, 2014 Total Possible Points (individual & team): 700

1  Grading The plus/minus system will be used whereby grades will be distributed according to the following schedule:

Out of 700 Points:

Percentage in Grade High Range Low Range GPA Course A = 700 658 94 – 100 % 4.00 A- = 657 630 90 – 93 % 3.67 B+ = 629 609 87 – 89 % 3.34 B = 608 588 84 – 86 % 3.00 B- = 587 560 80 – 83 % 2.67 C+ = 559 539 77 – 79 % 2.34 C = 538 518 74 – 76 % 2.00 C- = 517 490 70 – 73 % 1.67 D = 489 420 60 – 69 % 1.00 F = 419 0 < 60 % 0.00

 Performance Standard for Grading  Many of you have either already begun your transition period from being a student to a professional or you are planning to in the near future. As such, the quality of the work you complete should be that of a professional.  The following will be used in grading your work and in assigning your final grade for the course.  A = Outstanding: A student who consistently demonstrates a nuanced understanding of material, engages in high quality participation/preparedness, exhibits excellent team management abilities, generates deliverables that demonstrate superior abilities, etc.  B = Above Average: A student who consistently demonstrates above average understanding of the material, engages in participation demonstrating regular preparation, works well in groups, turns in thoughtful, well-prepared, high-quality deliverables, etc. May demonstrate sporadic “outstanding” work.  C = Average: A student who demonstrates an understanding of the material, comes to class most of the time and participates, is usually prepared, gets along in groups, provides a positive contribution to team assignments, and turns in deliverables of appropriate professional quality.  D = Below Average: A student who does not fully understand the material, misses class and/or fails to participate regularly, doesn’t prepare for class regularly, gets along in groups and does a fair share but the quality may not meet group members’ expectations, puts deliverables together at the last minute, etc.  F = Failure: A student who has an inadequate understanding of some or all of the material, misses class, does not participate, does not turn in all deliverables, and/or does not complete team assignments.

 Attendance and Class Participation  Attendance, advanced preparation, active participation and contribution are vital to your career success. It is also vital to an effective learning environment. No set weight is allocated to this component of the course. However, your instructor, at her discretion, will use this component to revise your overall grade for this course —this may raise or lower your grade. Pop quizzes may periodically be given to help in assessing preparation.  Throughout the semester I will evaluate the adequacy of your individual class participation. Evaluations will primarily be based on the frequency and quality of your contributions to in-class discussions as well as your contributions during in-class exercises (both individual and team-based). If individual class contributions are not deemed adequate (e.g., if you never speak up in class) or value-adding to the class discussions and in-class projects (e.g., your contributions must be meaningful to the topics under discussion), your overall final grade can be increased or decreased. These evaluations will occur on an ongoing basis and a final evaluation regarding each student’s semester-long participation quality will be made at the end of the semester.  A few notes on class contributions: The assessment of contribution will be based first on the quality and second on the quantity of your participation. Further, the extent of both attributes will be solely determined by the instructor. While much of the focus of class discussions is the application of

2 analytical frameworks/tools to guide strategic decisions, any comments adding to the classes’ understanding of the issues, cases, firms, strategic topics, etc. are encouraged. Comments reflecting thorough preparation which extend the class discussion can positively affect your grade. Conversely, “off- the-cuff” and non-value adding contributions will negatively affect your grade.  What is a contribution?  Raising and answering substantive and relevant questions  Sharing relevant ideas, observations, and personal experiences  Generating potential solutions  Relating/synthesizing ideas of others to increase everyone’s understanding of a concept  Pointing out relationships to earlier discussions  Please note that criticism of others’ ideas/comments without substantive recommendations or alternatives is not considered a contribution  Other Policies 1. Student Evaluation of Teaching: The university will ask for your anonymous feedback regarding instruction in this course through the online Student Evaluation of Teaching (SET) as your candid, respectful opinions and constructive suggestions have an impact on the quality of teaching at UD. Instructions for how to complete SET will be sent to your UD email account toward the end of the semester, and I may give you additional instructions (for example, whether you will complete SET in the classroom). If you encounter technical problems accessing SET, contact the UDit Help Desk at 937-229-3888 [email protected]. To learn more about SET, visit go.udayton.edu/set.  Electronic Devices 1. No electronic devices are to be used in the classroom (e.g., cell phones, tablets, laptops, etc.). 2. Throughout the semester, there may be certain designated in-class work days where a laptop may be used in class. These days will be announced in class.  Students with Disabilities 1. If you anticipate or experience physical or academic barriers based on disability, please let me know immediately so that we can discuss options. You are also welcome to contact the LTC's Office of Learning Resources (OLR) to discuss reasonable accommodations. Please contact OLR at 937-229-2066 (TTY 937-229- 2059 for deaf/hard of hearing), by email at [email protected] or stop by OLR in the LTC, room 023 Roesch Library. If you have an Accommodation Letter provided by OLR, please contact me to discuss. If you need assistance accessing print material, please review the OLR website information under Disability Resources for alternative formats. This includes textbooks and electronic material such as PDF documents. (http://www.udayton.edu/ltc/learningresources/index.php#alternativeformats)  Academic Integrity 1. Academic dishonesty will not be tolerated. This is a policy that I take very seriously. If cheating, plagiarism, or academic dishonesty of any kind occurs, the offender will be automatically dismissed from the course with a failing grade. 2. The University Bulletin specifies what constitutes academic dishonesty, so I suggest that you read it. For example, beyond those types of dishonesty discussed in point one in this section, academic dishonesty also involves enabling others to cheat. That is, if you “lend an assignment” to someone, and they copy it (or just portions of it), you will receive the same penalty as they do. It doesn’t matter if you tell them not to copy, if they do so anyway, you share liability with them. If it is a group assignment, I use my judgment to decide what to do, but everyone within the group can receive the same grade. 3. With regard to citing references that you have used within the body of your work, you must cite all sources. Anything that is cut and pasted should be included in quotes and cited in your bibliography. Do not excessively use direct quotes, either. Be sure to paraphrase if direct quoting seems excessive. If you are unclear of what to cite or not, contact me for clarification before the assignment is due. 4. For any emails sent during the semester, I will use the University’s Gmail email system and the corresponding email addresses for the members of the class.  Classroom Professionalism 1. Always be respectful of others in the class (professor and students); their opinions and comments. 2. Respect extends beyond the classroom. The content of any emails, group meetings, online chat meetings, etc., should be carefully thought out. Please be respectful of each other and the professor, including your 3 electronic transmittals. This is a formal business course and I expect you to conduct yourselves as business people inside and outside of the classroom, including correspondence. 3. The professor reserves the right to alter the syllabus, itinerary, or class assignments at any time. 4. Any behavior deemed by the professor as unprofessional, disrespectful, inappropriate, and/or rude will result in up to a 20% reduction in your final grade.

4 Managing the Enterprise MGT 490 Course Outline for Fall 2014

Readings and assignments are due on the day noted on this itinerary. Please come prepared to discuss the readings assigned and with the downloaded slides from the course website. Changes can occur to maximize learning.

Class Date Day Topics Assignments Due *Classes Begin* August 27 Wednesday  Course Introduction  Assignment Discussion

September 1 Monday *Labor Day, No Classes*

 CapSim: Introduction and September 3 Wednesday  CapSim Manual Teams Formed  CapSim Tutorial “Introductory Lesson” September 8 Monday  CapSim: Introduction (Continued)  Individual Assignment: CapSim registration to be completed by today (noon)  CapSim Tutorial “Introductory Lesson” September 10 Wednesday  CapSim: Introduction (Continued)  CapSim Practice Round #1 processes  Strategic Management and Strategic September 15 Monday  Chapter 1 Competitiveness  Chapter 2 September 17 Wednesday  The External Environment: General Environment  CapSim Practice Round #2 processes  The External Environment: September 22 Monday  Chapter 2 Industry Environment Day #1  Chapter 2 September 24 Wednesday  The External Environment: Industry Environment Day #2  CapSim Practice Round #3 processes  Chapter 3 September 29 Monday  The Internal Environment Day #1  Individual Assignment: CapSim Quiz (70-points)  Chapter 3 October 1 Wednesday  The Internal Environment Day #2  CapSim Practice Round #4 processes October 6 Monday  Business-level Strategy Day #1  Chapter 4  CapSim Graded Round #1 October 8 Wednesday  In-class Team Meetings processes

October 13 Monday  Business-level Strategy Day #2  Chapter 4

October 15 Wednesday Mid-Term Exam Review  CapSim Graded Round #2 processes

Mid-term Exam (100-points) October 20 Monday  Individual Assignment: Mid-term exam (Chapters 1-4) (100-points)

5  Chapter 5 October 22 Wednesday  Competitive Rivalry and Competitive Dynamics  CapSim Graded Round #3 processes October 27 Monday  Strategic Plan Workshop Day  CapSim Graded Round #4 processes October 29 Wednesday  TBD  Team Assignment: Strategic Plan Due (100-points) November 3 Monday  Corporate-level Strategy, Day #1  Chapter 6  Chapter 6 November 5 Wednesday  Corporate-level Strategy, Day #2  CapSim Graded Round #5 processes

 Acquisition and Restructuring November 10 Monday  Chapter 7 Strategies Day #1

 Chapter 7 November 12 Wednesday  Acquisition and Restructuring Strategies Day #2  CapSim Graded Round #6 processes

November 17 Monday  International Strategy Day #1  Chapter 8  Chapter 8 November 19 Wednesday  International Strategy Day #2  CapSim Graded Round #7 processes

November 24 Monday Presentation Prep Day

November 26 Wednesday *Thanksgiving Break, No Classes*  CapSim Graded Round #8 processes

 Team Assignment: Feasibility Analysis Presentations (100-pts) Final Presentations Teams December 1 Monday Andrews, Baldwin and Chester  Peer Evaluations Due: (complete them on the CapSim website under homework link) (30-pts)  Team Assignment: Feasibility Analysis Presentations (100-pts) Final Presentations Teams December 3 Wednesday Digby, Erie and Ferris  Peer Evaluations Due: (complete them on the CapSim website under homework link) (30-pts) *Feast of the Immaculate Conception, No December 8 Monday Classes*

December 10 Wednesday *Last Day of Class*  Final Exam Review

Final Exam (100-points)  10:10am-noon, Tuesday, (Chapters 5-8) December 16, 2014 in O’Leary Auditorium (Block Exam)

6 Managing the Enterprise: Individual Assignments

Assignment Name: CapSim Quiz Assignment Type: Individual Assignment Points: 70-points Due Date: September 29, 2014, Monday

Overview It is imperative that each and every student understand how the simulation works. To help you to learn the specifics of the simulation, there will be a mandatory CapSim quiz. The better you understand how the simulation works, what can be altered, and how performance is measured, the more successful your team will be and the more you will learn. This quiz will cover information in the required reading in Capstone Business Simulation: Student/Team Guide. You are also strongly advised to take advantage of the tutorials available at CapSim’s web site.

Assignment Name: Experiential/Networking Paper Assignment Assignment Type: Individual Assignment Points: 100-points Due Date: Within one week after student attends the session

Overview Over the semester, you will have the opportunity to attend events with business professionals and peers to increase your understanding about how course concepts are applied in practice. These include UD Walk the Talk sessions. 100-points of your course grade will be based on your attendance and completion of a written assignment for one Walk the Talk event. Dates and times for the events scheduled for fall 2014 are below. You will sign-up for a Walk the Talk event in class, during the first week of classes. After the first week of class to schedule or reschedule a date, you will need to contact Trisha Meier (meiert1@ udayton.edu).

 Wednesday, September 24th  Tuesday, October 7th  Thursday, October 16th  Thursday, October 30th

Topics may include ethical aspects of business, planning, competition, or other related topics. Advance registration is required and space is available on a first-come, first-serve basis. Following the session, you are to provide a one page write-up explicitly addressing the following six elements: 1. Identify the event attended (name and date) and the MGT490 chapters and topics to which it relates. This should be more than a simple mention of the chapter or case. Discuss why and how the material relates and to what chapters that material corresponds. This is a critical part of the assignment. 2. A brief summary of the presentation/case examined. 3. A summary of the alternatives the teams discussed for resolving the issue proposed at the Walk the Talk event. 4. The specific course of action that you would recommend for resolving the issue at the Walk the Talk event. 5. Your reaction to the presentation or discussion. 6. The key learning points from the event.

Format/Write-up Details  The write-up may not exceed one (1) single-spaced page.  The written assignment is due no later than one week following the session.  Use 10- or 12-point Times New Roman font.  Use 1” margins.  Single space the paper and write in complete sentences.  Be cautious of your writing skills. Proofread the paper to ensure there are no problems with writing skills. 7  Late papers will NOT be accepted.

8 Managing the Enterprise: Team Assignments

Assignment Name: Simulation Performance Assignment Type: Team Assignment Points: 100-points Due Date: Determined after Round 8 of CapSim processes

Overview

100 points of your course grade will be based on the performance of the simulated company you will manage. In order to receive credit for this portion of the course, all students must register on www.capsim.com no later than before class on the registration deadline date indicated on the itinerary (Monday, September 8th). Failure to register in a timely manner will negatively affect the grade that you and your team achieve. Registration details are below.

CapSim Registration Information

Please visit the CapSim website (www.capsim.com) to register. You will need a credit or debit card to register. In addition, you will need to register using the Industry ID that corresponds to the section of MGT 490 within which you are enrolled. Please register using the following Industry ID numbers as it corresponds to the MGT 490 section within which you are enrolled.

MGT 490 Section Industry ID MGT 490 Section 04 C65029 MGT 490 Section N1 C65030

Performance Criteria

Your team will determine the performance criteria that you wish to be graded against, and your criteria will likely differ from what your competitors select. Teams will not be able to see the criteria selected by their competitors until after the simulation is completed.

Your team simulation performance, prior to adjustment based on your peer evaluations, may be modified relative to other industries assuming your industry falls within appropriate parameters. If industry and competitive conditions fall outside appropriate parameters, professorial intervention may occur. The following is a guide for the grading of your performance in the simulation. Based on prior experience, we offer that criterion #1 will be used for the vast majority of teams but offer criteria #2(a-c) as a safety net. The grade will be the highest of the following calculations:

1. ((Your CapSim score * 10) + 40) / 100 = percentage - or - 2a. A 55% provided that all members of your team have registered on time and submitted all rounds, peer evaluations, and other CapSim related materials on time. 2b. A 65% provided that you complete “2a” above and post either positive cumulative profits of $25 million or have an average stock price of $48 per share. 2c. A 70% provided that you complete “2a” above and post both positive cumulative profits of $25 million and have an average stock price of $48 per share.

9 Assignment Name: Peer Evaluation Assignment Type: Team Assignment Points: 30-points Final Due Date: To be completed by the day the team presents

Teamwork and Peer Evaluation Overview

Note: Peer Evaluations are completed on the CapSim website under the homework link.

Firms are increasingly being started and run by groups of individuals as opposed to solo individuals. Further, organizations are increasingly using project teams as they are better at executing organizational tasks. One vital assumption relative to the use of teams in business is that all members perform well and execute tasks appropriately and timely. Members who do not work up to the team’s/firm’s standards are often fired or reassigned to other duties. To align the team project to the real-life business world, the following policies will apply to teamwork.

If a team member’s lack of contribution is hurting the team’s progress, that member may be fired by a unanimous vote of the team members. The fired member will then complete all remaining team assignments on his/her own. The presentation will be replaced by individual written analyses. The assignments are due the same day as presentation. A total of 20 points will be deducted for every 24 hour period these assignments are late.

Alternatively, if an individual determines that he/she is unable to work in their team, they may either: 1) Try to find another team to join. The new team must unanimously vote the individual on to the team. 2) The member may complete all remaining team assignments on his/her own via written analyses. These analyses are due the same date as the presentation. A total of 20 points will be deducted for every 24-hour period assignments are late. Individuals who leave teams will receive grades earned on their team’s assignment during the time they were a part of the group. Any team member changes throughout the semester must be reported to Dr. Sullivan.

In the event of affective conflict within your team, first try to resolve the issues internally. Use the skills you have learned during your undergraduate careers. If problems persist, please contact your instructor. In extreme cases, teams may be broken-up, dissolved, or members disbanded.

To avoid “free rider” problems, peer evaluations will be administered at the end of the semester and will account for 30-points in MGT 490. Evaluations are completed on the CapSim website. Your final individual grade for the peer evaluations will be adjusted based on an evaluation of your contribution. Peer evaluations will be based on dimensions such as the following:

 Quality of work  Attendance at meetings  Carrying fair share of workload  Meeting deadlines/showing initiative  Overall value to the team

10 Assignment Name: CapSim Strategic Plan Assignment Type: Team Assignment Points: 100-points Due Date: October 29, 2014, Wednesday

Overview

Following the completion of several practice rounds, each team is responsible for developing a competitive strategy that they will follow and implement during the course of the simulation. The strategic plan is not to exceed 10 double-spaced pages (excluding the cover page and appendices) and should conform to the following formatting: Format  Use 12-point Times New Roman font  Double space the paper  Use 1” margins on all sides  Text should be printed on only one side of the paper  Use headings corresponding to the outline provided below  Insert page numbers within the paper  Staple the paper and the supporting documents together  Write in complete sentences  Be cautious of your writing skills. Your writing skills must be suitable for your report to be submitted to a board or investor. Proofread the plan to ensure there are no problems with writing skills.  Late papers will NOT be accepted  Compare your content and format with the instructions. Points can be lost for not following directions.

Assignment Specifics

Each plan should include the following:

1. Cover page including the team name, CapSim industry number, and the name of each team member listed alphabetically.

2. Description of team organization including titles, tasks, roles and responsibilities. Include an organization chart as an appendix.

3. Statement of Mission.

4. Statement of Business-Level Strategy. One or two sentences only. What is your business-level strategy?

5. Competitor Analysis: Identification and assessment of the strategy being utilized by other teams, the segments they are focusing on and the capabilities being developed to support their strategy within each segment/product. Include a summary of the following in your business plan. Include any supporting documentation within your appendices.

A. What is the business-level strategy of every other team in your industry? What segments are most important to them? How do you know? How does this affect the segments/products of your team?

B. Capacity Analysis i. What is the capacity of the entire industry in each segment (not only your team) at the end of round 3?

11 Include a table in your appendices that shows your capacity calculations. ii. Provide a comparison of total capacity in each segment at the end of round 3 relative to demand for each segment in rounds 3, 4, 5, 6, 7 & 8. Are there any shortages, overages currently or that you can anticipate in the future (e.g., can current capacity meet demand in the future rounds)? Discuss. Be sure to include a table in your appendices that shows your demand calculations. iii. Assess what this capacity analysis means for your team’s strategy and the actions you should consider? Specifically, what do any shortages/overages mean for how your team should manage capacity investments in each segment for future rounds?

C. Material Cost Analysis i. Compare your products to all other products in each segment relative to material costs at the end of round 3. Include a table in your appendices that shows your material costs in each segment compared to every other team’s material costs in each segment. ii. What does your analysis of material costs mean for your strategy and the actions you should consider?

D. Labor Cost Analysis i. Compare your products to all other products in each segment relative to labor costs at the end of round 3. Include a table in your appendices that shows your labor costs in each segment compared to every other team’s labor costs in each segment. ii. How is the issue of labor costs interrelated with your analysis of capacity and what does it mean for your strategy and the actions you should take? Hint: Think about how capacity (1st and 2nd shift) impacts labor costs.

E. Future projections (this should serve as the basis for part 6 – implementation of business-level strategy) i. What are the primary issues facing your firm given your current strategy and what outcomes will you need to reach in the coming rounds? Note that a description of how this will be achieved should be included in section 6 – implementation of business-level strategy.

6. Implementation of business-level strategy. Identify the specific resources and capabilities that you will be developing to support your strategy and achieve your objectives for the future rounds. Provide a detailed plan for implementation of this strategy including specific actions planned for rounds 4 - 8. Be specific in terms of the amount of capital required, when it will be required, the sources of funds, etc. Be sure to link this plan to your business-level strategy and the results of your competitor analysis.

7. Selection and allocation of performance criteria. Include this as the very last page of your document. You are to briefly explain why you selected the metrics to be used. You must have a minimum of 20% based on average stock price and 20% on cumulative profits – the balance is what you select. We advise that you select no more than a total of four metrics including stock price and cumulative profit.

- - - Please copy this table and paste it into your strategic plan, then complete. - - -

Metric Weight (%) Rational for Inclusion or Exclusion of Metric Cumulative Profits (minimum of 20%) Average Stock Price (minimum of 20%) Average Market Share (% sales of industry sales dollars) Average ROS

12 Average Asset Turnover Average ROA Average ROE

13 Assignment Name: Team Final Presentation Assignment Type: Team Assignment Points: 100-points Due Date: Teams Andrews, Baldwin and Chester present on December 1, 2014, Monday Teams Digby, Erie and Ferris present on December 3, 2014, Wednesday

Overview

Following the completion of the simulation, each team will give a 15 minute shareholder presentation on the results for your company, followed by 5 minutes of Q&A. The presentation should be professional in every aspect (deliverables, dress, etc.) and made at the time designated in the course schedule. Team grades will be based on the quality of the presentation, the soundness of the decisions, and the ability of the team to support the reasoning behind their decisions and actions. More information on the final presentation will be provided later in the term.