5292 - BUSINESS STRATEGY

A firm's ability to survive and succeed in an increasingly competitive global arena depends on its ability to understand competitive dynamics and to enact strategic responses. The main objectives of this course are to sharpen students' understanding of the dynamics of competition in the extended industry environment in which firms operate, and of the processes through which firms develop and implement strategies in an effort to compete effectively in that environment. The course provides analytical tools and mental models that aid students' understanding and decision-making.  
The course aims at identifying, analyzing and understanding the impact of the key structural elements and characteristics of industries and the manner in which firms in those industries compete (and cooperate) with each other in terms of differentiation, segmentation, technology and innovation. Students should gain a better understanding of the relationship between industry structure and overall industry profitability, the firm's position within the industry and its profitability vis-a'-vis the industry average, and the processes through which strategy is enacted.
The program is a highly interactive course on strategy analysis, and covers relevant topics for companies facing global markets, with a special attention on the comparison between the mainstream strategic approach and the specificities of the European and Italian perspectives.
Through a series of readings, case studies and projects students are expected, both individually and in groups, to integrate their knowledge about the functional components of business to make strategic decisions and to justify those decisions through oral and written communication.  The course is conducted in English and  includes both individual and group assignments. Attendance is necessary for all students expecting to pass the course, as this sequence requires a significant amount of work, both inside and outside of class. It is intended for those students committed to developing their skills and expanding their knowledge of Business Strategy in the global competitive arena.

Part 1- Strategy and performance

• Business strategy: concepts and definitions
• Developing  a "competitive strategy" and "non-competitive strategies"
• The determinants of performance: a cause-effect approach
• Defining "competitive advantage"
• The internal sources of competitive advantage
• Competences, capabilities and the resource-based view of the firm
• Explorers and exploiters
• The external factors influencing company's performances
• Industry analysis
• Differentiation advantage strategies
• Competing in oligopolistic markets
• Barriers to mobility and advantages of incumbents
• The value chain analysis: creation and appropriation of value
• The value net approach
• Competing in market with demand-side increasing returns
• Strategies for information-intensive industries

Part 2 - Corporate Strategy and the Global Challenges

• The evolution of industries and the life-cycle approach
• Globalisation and strategy
• Corporate strategies and effects on competition
• Managing value in a multibusiness company
• Strategy and multinational corporations
• The strategy process and the future of strategy in organizations

Each session is devoted to a combination of theoretical analysis, case discussion, and/or student presentations and includes the following:

• The analysis and discussion of specific theoretical models (see the course outline for the details of assigned readings).
• The analysis and discussion of business problems - including the search for alternative solutions and their ramifications - which is presented in the form of case studies (see course outline for the details of assigned cases).
• Group/individual presentations based on current news events that are relevant to the content of the course.

Because the course emphasizes the use of facts, figures, numbers and examples that support ideas and concepts, all students are expected to read the syllabus and come to class prepared to contribute to discussions and group activities. "Prepared" means having read the assigned materials in advance of class, and invested the needed time and effort to develop insightful opinions.

Attending  students
Partial written exam + final written exam

Non-attending students
Written exam based on short essay-type Q&As on topics covered in the reading materials required for non attending students. The exam may include the application of models and principles treated in the textbooks to additional material (e.g. short business cases, papers or articles) which is distributed during the exam session.

Attending students
Required readings:

• G. SALONER, A. SHEPARD, J. PODOLNY, Strategic Management, Wiley, 2005.
• C.A. CARNEVALE MAFFE' - V. KUMAR (edited by), Course Package - Cases and Readings,  available on Bocconi Web Learning Platform.

Non-attending students
Required readings:

• G. SALONER, A. SHEPARD, J. PODOLNY, Strategic Management, Wiley, 2005.
• H. MINTZBERG, B. AHLSTRAND, J. LAMPEL, Strategy Safari, Prentice Hall, 2005.