Strategic Management

, 251.424(004)

Spring 2025
Wednesdays 3–5:50pm
Bldg. 58, Rm. 119

Instructor Prof. Hyo Kang ( )

Office 59-701
Office Phone 02-880-7927
Email [email protected]
Office Hour Fridays, 9:30–10:30am, by appointment

I. Course Description
This course introduces the key concepts, tools, and principles of strategy formulation and
competitive advantage. It is concerned with managerial decisions and actions that affect the
performance and survival of business enterprises. The course is focused on the information,
analyses, skills and business judgment managers must use to craft strategies to maximize long-
term profits in the face of uncertainty and competition.

Strategic Management is an integrative and interdisciplinary course. It assumes a broad view of

the environment that includes suppliers, buyers, competitors, the economy, technology, capital
markets, the government and global forces and views the external environment as dynamic and
characterized by uncertainty. The course draws together and builds on the ideas, concepts, and
theories from your functional courses such as economics, accounting, finance, marketing and
statistics.

The course takes a general management perspective, viewing the firm as a whole, and
examining how policies in each functional area are integrated into an overall competitive
strategy. The key strategic business decisions of concern in this course include selecting
competitive strategies, creating and sustaining competitive advantages, defining firm
boundaries and allocating critical resources over long periods of time. Decisions such as these
can only be made effectively by viewing a firm holistically, and over the long term.

II. Learning Objectives

Theory and Concepts. Strategic Management provides the key concepts, tools, and principles
of strategy formulation and competitive advantage. The course covers theories and frameworks
for in-depth industry and competitor analysis, for analyzing the impact of various forces (e.g.,
technological advances, government regulation) on industry competition and evolution and for
anticipating and predicting future industry developments. The course also examines the

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economic underpinnings of competitive advantages and the fundamental conditions that allow
firms to create and sustain advantageous strategic positions. The course also covers concepts
and theories for corporate strategy decisions such as diversification and vertical integration as
well as theories and frameworks for global strategy decisions.

Analytical Skills. Theoretical concepts are a great aid to understanding, but by themselves are
not enough to solve real business problems. You also need a set of useful analytical tools and
skills that can be applied to the data to question and validate the facts and the premises assumed
in the theories. Some of the tools are quantitative (e.g., analyzing financial statements or
calculating the effect of scale on production costs), while others are qualitative. Learning how
and when to apply these techniques is a key objective of the course.

The course will offer you experience in conducting a comprehensive strategic analysis of a
company. This involves an in-depth external analysis of the firm’s industry and competitors and
a thorough internal analysis of the firm’s objectives, strategies, competitive advantages and
performance. You will also identify and analyze the key strategic problems faced by the company
and develop effective solutions and an implementation plan.

Critical Thinking Skills. The course will place a special emphasis on developing your critical
thinking skills and enhancing your ability to present a thoughtful critique of others’ arguments,
analyses and supporting evidence. These skills will also help you to gather information, prepare
thoughtful analyses and build compelling arguments.

Communication Skills. The best analysis will have little effect if it cannot be communicated to
others. Managers must be able to articulate their views coherently and persuasively.
Management is a “verbal sport.” As much as ninety percent of a typical manager’s day can be
consumed by communication. Time is often scarce. You must learn to make convincing
arguments and to make them quickly. This skill takes practice and we will place a special
emphasis on it in class through oral presentations and written reports.

Heuristics. Much of the knowledge that successful managers use consists of “rules of thumb”
about what issues are likely to be important in certain kinds of business situations and about
how best to deal with certain problems. These rules of thumb or heuristics are often implicit in
managers’ thinking yet they have never bothered to articulate them explicitly. An important
goal of this course is to help you build up your set of useful rules of thumb or heuristics for your
future managerial careers.

In this course, we are as much interested in developing an appreciation for the art of
management as we are in understanding the science of management. Tools alone may make you
a good analyst, but they will not make you a good strategist. While the ability to master analytical
tools and frameworks is essential, ultimate success is more strongly predicated on vision, insight,
good judgment and a willingness to act with conviction.

Upon successful completion of the course, students will have the knowledge and skills to:

1. Explain the fundamental characteristics of a well-conceived strategy and formulate an

effective strategy for competitive advantage.
2. Analyze the main structural features of an industry and recommend a strategy that
positions a company most favorably in relation to competition.

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 3. Explain the characteristics of disruptive innovations and recommend a strategy to
develop disruptive innovations for competitive advantage.
4. Appraise the resources and capabilities of a firm and explain how they can be leveraged
to earn above-average returns.
5. Diagnose a firm’s competitive advantage and provide recommendations for creating,
enhancing, and sustaining competitive advantages.
6. Analyze the dynamics in competitive rivalry and develop strategies for acting both
proactively and defensively.
7. Conduct basic game-theoretic analysis to predict competitive interactions.
8. Describe a firm’s corporate strategy, evaluate its effectiveness and recommend vertical
and horizontal changes in the boundary of the firm.
9. Describe a firm’s global strategy, evaluate its effectiveness and provide
recommendations to enhance performance on a global level.
10. Recognize ethical challenges in business situations and develop effective
recommendations for addressing them.
11. Explain the concept of shared value and provide recommendations for creating shared
value.
12. Perform a comprehensive strategic analysis of a company, analyzing the key strategic
problems it faces and providing effective solutions and an implementation plan.
13. Provide a thoughtful critique of others’ arguments, analyses and supporting evidence.
14. Communicate your arguments coherently and persuasively.

III. Course Materials

Required course materials

Coursepack. Assigned readings and cases for this course are compiled in a digital coursepack.
The readings for the first class and the coursepack link will be available on eTL. Additional
readings may be distributed in class or posted to eTL. The final exam will typically include an
additional case, which is included in the coursepack but will remain hidden until the exam date.

eTL. eTL (http://etl.snu.ac.kr) will be the central platform we use for this class. I will post
various course materials to eTL including the course syllabus, lecture notes, case discussion
questions and assignments. Please check eTL regularly for any new information or materials
relevant to upcoming sessions.

Optional course materials

There is no required textbook for this course. The only required materials are the cases and
readings in the coursepack. Some students have found that a textbook helps them cement their
understanding of the basic concepts of the course. For further reading, I recommend the
following optional textbook: Frank Rothaermel, Strategic Management, McGraw-Hill Education
(4th, 5th, or 6th edition).

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IV. Course Format
In-Person Class. Class will meet in-person. There is no option to attend class via Zoom.

Classroom Policies. Active class participation is essential for achieving the learning objectives
of this course. Unless otherwise communicated with the instructor prior to class, active
participation is expected during each session. Students with accommodations should submit
their accommodation document to the instructor as soon as possible.

Case Method. In order to achieve the objectives of the course, we will devote the majority of
our class time to the analysis and discussion of selected business cases. Occasional lectures will
be given to elaborate on key theoretical concepts and frameworks. These lectures, however, will
be subordinate to the case analysis. Cases provide a natural “test-bed” for theory and provide
vivid examples that aid the memory of concepts. While nothing can surpass first-hand personal
industry and managerial experience as a basis for decision-making, case analysis is an
indispensable proxy for the kind of knowledge that can only be gained through years of
experience and research. A set of business cases has been selected on a range of companies from
a variety of industry settings. Each case is intended to teach us something specific, yet each can
teach us many things. We will not attempt to exhaust each case of all its learning experiences,
but rather build up a “war chest” of analytical tools, skills and insights, progressively over all
the selected cases.

There are other reasons for employing the case discussion method of instruction. First, it allows
you to develop skills at problem definition in addition to problem solving. Cases typically do not
have an obvious set of tasks whose performance will lead to mastery. Rather, they force you to
sift through a mass of information, some of it irrelevant or contradictory, in order to identify the
key strategic issues. Second, the case method gives you a chance to deal with ambiguity. Most
cases do not have obvious “right” answers. Managers must be able to function in situations
where the right answer is not known, without falling into the trap of assuming that any answer
is as good as another. Some analyses and proposed strategies are clearly wrong, and some are
clearly better than others are. A popular phrase in case analysis classes is “There are no right
answers, but there are wrong answers.”

These rationales are offered because the case method may be unfamiliar to some of you and may
cause initial confusion. There will be many times when I will not reveal my own opinions about
a particular issue, and there will be many cases that do not end up neatly packaged with an
“answer.” You may discover that your preparation “misses” key points of a case, especially at
first. This is a normal part of the learning experience.

The quality of your learning experience during our class discussions will be directly determined
by: (1) your degree of preparation, listening, and participation, and (2) your classmates’
preparation, listening, and participation. Some will not agree with you, and you may be asked
to defend your argument. As long as criticism is directed at arguments rather than individuals,
is relevant to the issues at hand, and is coherently argued, it is very much welcomed.

Case Preparation. Cases require careful preparation before coming to class. The following is a
suggested list of steps to guide your case preparation.

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 1. Rapidly read the assigned case to gain a general understanding of the industry, the firm,
and the key strategic issues faced by the firm.
2. Carefully review the case discussion questions provided for the case on eTL to learn
more about what issues require special attention.
3. Carefully re-read the case, taking notes that sort information, facts, and observations
under a number of relevant headings.
4. Formulate theories or hypotheses about what is going on as you read (“the company
loses money on small orders”), modifying or rejecting them as new information
surfaces (“Table 2 shows that shipping costs per unit are higher for small orders, but
only for long-distance shipments”).
5. Perform quantitative analyses, “crunching” whatever numbers are available. Use
these numbers to provide quantitative support wherever possible, particularly when
exploring various hypotheses as to the nature and importance of certain phenomena.
If the requisite data are not available in the case, precise descriptions of what data are
missing often triggers ideas for making creative use of the information that is available.
6. Prepare definitive conclusions before you come to class concerning the key strategic
issues faced by the firm in the case and how they can be addressed as well as the issues
raised in the case discussion questions.
7. Bring your detailed notes with you to class to help guide your interventions in the class
discussion.

V. Course Evaluation
Your course grade will be determined as follows (total 100%):

Individual work 70% Group work 30%

– Class Participation 30% – Group Presentations and 30%
– Final Exam 30% Final Project Paper
– Quiz 10% – Competitive Strategy Game Bonus

Final grades represent how you perform in the class relative to other students. Three items are
considered when assigning final grades:
1. Your weighted score as a percentage of the available points for all assignments (the
points you receive divided by the number of points possible).
2. The overall average percentage score within the class.
3. Your ranking among all students in the class.

Attendance. Your attendance will not directly impact your final grade. However, merely
attending class without participating contributes little to your own learning experience and that
of your classmates. However, please note that per University policy, students must attend at
least ten (10) out of fifteen (15) sessions; failure to meet this requirement without prior
consultation with me will result in an F or U grade.

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Class Participation (30%). Because this course relies heavily on case materials, your active
contribution to our case discussions is required to ensure the class’s success. Each student has
a responsibility to participate in class and to enhance the learning experience of all class
participants. Students will have the opportunity to take the lead in various aspects of class
discussions (via warm and cold calls). Typically, I will ask one or more students to start the class
by answering specific questions such as “If you were the person in charge in this situation, what
would you do?”

Your overall class participation will be closely monitored. In grading oral participation, I will
assess the quality of your contributions, which should include well-supported arguments in
addition to your claims. If you are not comfortable with oral participation, please let me know
at the beginning of the semester. I will work with you to help you overcome this barrier.

Final Exam (30%). Part I of the final exam will consist of multiple-choice and short-answer
questions based on class materials (I will try to minimize the preparation burden for this section).
Part II will require you to analyze a new case, which will be distributed one week before the
exam. More detailed instructions will be posted on eTL.

Quiz (10%). There will be up to six unannounced in-class quizzes to assess students’
understanding of the reading assignments. These quizzes will be straightforward, and students
who have completed the readings should have no difficulty earning full points. Only the four
highest quiz scores will be counted toward your final grade.

Group Presentations and Final Project Paper (30%). You will prepare a strategic analysis of
an existing company as part of a group. You will apply the concepts, analytical tools and
frameworks of this course to analyze the firm’s external and internal environments, identify and
analyze the key strategic problems it currently faces, and present a set of recommendations to
maximize the firm’s long-term performance. Two days near the end of the course are set aside
for oral presentations of your group’s final project. The presentation allows each team to report
their analysis and recommendations to the class. The groups will be formed by a random
drawing, and the presentation dates and order will be assigned the same way. Detailed
instructions regarding the group final project paper and presentation will be posted to eTL.

Peer Evaluations. Each of you will complete a peer evaluation for the members of your group.
Individual scores for the final project will be assigned by me, based on my assessment of the
project's overall quality, my observations of the group’s working dynamics, and a thoughtful
review of the feedback provided in your peer evaluations.

If you experience any team-related problem (e.g., conflict, free-rider), please let me know immediately.
Do not wait until the end of the semester. If you report this problem too late, there is not much I can do.

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VI. Course Calendar

# Date Session Topic and Agenda Reading

Introduction to Strategy
1 3/5 Course Introduction and Overview
LECTURE: What is Strategy? HBS #96608

Industry Analysis
2 3/12 LECTURE: The Five Competitive Forces that Shape Strategy HBS #R0801E
CASE: Cola Wars Continue: Coke and Pepsi in 2006 / Form groups HBS #706447
3 3/19 CASE: Lego (A): The Crisis HBS #713478
DISCUSSION: Why Do Firms Exist? eTL
» Group Project Proposal Due: 3/21 at 6pm (not graded)

Competitive Advantage
4 3/26 LECTURE: Disruptive Technologies: Catching the Wave HBS #95103
CASE: Fasten: Challenging Uber and Lyft / CSG #1 HBS #616062
5 4/2 LECTURE: Creating Competitive Advantage / CSG #2 HBS #798062
6 4/9 GUEST LECTURE: Perigee Aerospace

Competitive Dynamics
7 4/16 LECTURE: Competitor Analysis: Anticipating Competitive Actions HBS #701120
CASE: Dogfight over Europe: Ryanair (A) / CSG #3 HBS #700113
8 4/23 LECTURE: Game Theory and Strategic Decision Making
CASE: Bitter Competition: HSC vs. NutraSweet (A) / CSG #4 HBS #794079
» Group Project Working Outline Due: 4/25 at 6pm (not graded)

Corporate and Global Strategy

9 4/30 LECTURE: Note on Corporate Strategy HBS #705449
CASE: Walt Disney Co.: The Entertainment King / CSG#5 HBS #701035
10 5/7 LECTURE: Global Strategy
CASE: Haier: Taking a Chinese Company Global / CSG #6 HBS #706401
11 5/14 LECTURE: Creating Shared Value HBS #R1101C
DISCUSSION: AI and Strategic Management / CSG #7 ETL

Turning Learning into Action

12 5/21 LOCATION: BUILDING 58, ROOM 131 (SUPEX HALL)
MINICASES: Paris Baguette & Starbucks ETL
JOINT CASE COMPETITION WITH USC MARSHALL STUDENTS ETL
» Group Project Final Report Due: 5/23 at 6pm
13 5/28 FINAL PRESENTATIONS 1 / CSG #8
14 6/4 FINAL PRESENTATIONS 2 / CSG Debrief
15 6/11 FINAL EXAM & Course Wrap-up