UNIVERSITAS GADJAH MADA

FACULTY OF ECONOMICS AND BUSINESS

THE MASTER OF MANAGEMENT PROGRAM

Course Syllabus

STRATEGIC MANAGEMENT
Facilitator: T. Hani Handoko, Ph.D
Office: Faculty of Economics and Business UGM, Bulaksumur, Yogyakarta
Phone: (0274) 880-490 (H); 0811292310 (M)
E-mail: hanihandoko@ugm.ac.id

Course Description
The course of strategic management is intended to be a challenging, demanding, and
exciting (integrating) course for the curriculum of management education. It is first and
foremost a course about “strategy” and about “managing strategy formulation and
implementation processes,” especially in the pursuits of corporate growth through
sustainable development. As a “big picture” course, this class is also designed to assist
the student in integrating much of the knowledge and skills that have gained in the core
management curriculum. The problems or issues of strategy formulation, formation, and
implementation or execution cover the whole spectrum of business and management. The
main objective is to sharpen your abilities to think strategically, to make strategic
decisions, and to weigh things from the perspective of the total enterprise. It means
systematically exposing the student to the rigors of industry and competitive analysis, to
the characteristics of a global market environment, to the critical linkages between
competitive strategy and sustainable development issues to the important ingredients of
strategic moves and plans, and to the varied managerial tasks associated with
implementing and executing the chosen strategy.

Course Objectives

1. To develop your capability to think strategically about a company, its business

position, and how it can gain sustainable competitive advantage and sustainable
development.
2. To build your skills in conducting strategic analysis in a variety of industries and
competitive situations.
3. To improve your ability to manage the organization process by which strategies get
formulated, formed, and implemented or executed.
4. To integrate and synthesize the knowledge and skills learned in earlier courses (e.g.
marketing, finance and accounting, production/operations, human resources, and
organizational behavior).

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5. To integrate environmental and social issues into the strategic management process.
6. To develop your power of managerial judgments, help you become familiar with the
problem of top management, and provide you with a stronger understanding of the
competitive challenges of a global business environment and stakeholder activisms
and pressures on sustainable development.
7. To apply the theory and technique of strategic management to actual business
situations by utilizing case methods.

The achievement of those course objectives will contribute to the attainment of the
following learning goals of the Program:

Concerns
No. AACSB Learning Goals
***=High **=Medium *=Low
LG1 Students demonstrate the ability to communicate **
in an effective, persuasive, and professional manner
LG2 Students demonstrate the ability to translate business knowledge ***
into action
LG3 Students demonstrate the ability to make ethical and **
responsible decisions
LG4 Students demonstrate the ability to solve practical business ***
problem with creative ideas
LG5 Students demonstrate the ability to be a strategic business leader ***

Required Texts
Thompson, Jr., A. A., Peteraf, M. A., Gamble, J. E., & Strickland III, A. J. (2020).
Crafting and executing strategy-The quest for competitive advantage: Concepts
and cases, 22th edition. New York, NY: McGraw-Hill.

Supplemental Text
Porter, M. E. 1980. Competitive Strategy: Techniques for Analyzing Industries and
Competitors. New York: The Free Press. (Porter)

Class Requirements

1. Class attendance and participation in case discussion. Attendance at all class

sessions is expected, especially class discussion of assigned cases. Absence from
class is a serious matter and you should not violate the policy of the MM Program
regarding the class attendance.
Due the fact that presentation and participation in class discussion of cases count
30% of your grade, each student must contribute significantly to in-class analysis of
the cases. Each student is required to be an active participant and make meaningful

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 comments on cases being discussed. Your grade on class participation is something to
be earned via consistent contribution to class discussion. You should, therefore, make
a conscientious effort to be sufficiently prepared to contribute to the class discussions.
The responsibility for making the learning process succeed is yours. PARTICIPATE!

2. Case Reports. Each student is required to submit an executive summary (limited to

2-3 pages) for all cases. These written assignments are due on the day the case is
scheduled for class discussion (see the course outline) and should be turned in to your
instructor at the end of class period. Reports that are turned in after the scheduled
class period are eligible for a grade no higher than a C. No late reports will be
accepted if submitted more than 3 class days past the scheduled due date (except by
prearranged consent of the instructor).

3. Exams. Midterm and final examinations will be conducted to test your knowledge,
understanding, and ability to apply the course material in solving actual managerial
problems. The exams will contain short cases and short answer (easy-type) questions,
and they will not be cumulative.

4. Field project report. The purpose of this project is to focus thought, course material
and library research on a specific, strategic managerial problem. Students are required
to submit a report on the result of a careful thought and systematic analysis in
applying strategic management concepts and techniques at an actual managerial
situation in an organization that you are familiar with. The report is to be prepared on
an individual basis. Evaluation of the report will be conducted on the basis of such
factors as (a) clarity of problem presented, (b) adequacy and quality of analysis and
proposed actions, (c) form and technical detail, and (d) course material integration
and understanding.

Academic Integrity
The academic life prospers due to its adherence to honesty and integrity. Plagiarism,
cheating and other types of academic misconduct are not tolerated in the MM FEB UGM.
The faculty together with students assumes responsibility to assure that learning integrity
works and is absorbed by the member. The assignment and exam the students submitted
must be the work of every student unless otherwise stated by facilitator that student must
collaborate with other student.

Student Evaluation
Your course grade will be based on the following components and point distribution.
 Midterm exam 25 points
 Final exam 25
 Field project report ("big paper") 20
 Participation, case report and discussion 30

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 Course Outline
Session Topic Reading Teaching
Assignment Methods
1 Introduction to strategic management  Discussion
 Course overview teaching
 The concept of strategy Chapter 1*
 Strategic management process

2 Charting a company’s direction  Discussion

 Developing a strategic vision: Mission, vision Chapter 2 teaching
and values  In-class
 Setting goals and objectives exercise
 Crafting a strategy  Case
 Case #1: Costco Wholesale in 2018: Case 4** discussion
Mission, Business Model, and Strategy

3 External environment analysis  Discussion

 Analyzing political, economic, social-cultural, Chapter 3 teaching
technological, and ecological environments Porter: 1, 3, 4, 7, 8  Critical
 Industry Analysis: Porter’s (1980) Five Forces, thinking
industry value-chain, and strategic groups  Case
 Competitive analysis discussion
 SWOT Analysis: Identifying opportunities and
threats
 Identifying key success factors (KSFs)
 Case #2: Competition in Energy Drinks, Sports TBD
Drink, and Vitamin-Enhanced Beverages

4 Internal analysis  Discussion

 SWOT analysis: Identifying strengths and Chapter 4 teaching
weaknesses Porter: 2, 5, 6  In-class
 Competitive advantage and core competence exercise
concepts – Resource-based view (RBV)
 Assessing resources and capabilities as sources of
competitive advantage – applying value-chain
analysis and VRIO approach
 Case #3: Coach Inc. in 2012: Its Strategy in the
“Accessible” Luxury Goods Market? TBD

5 Business-Level Strategy  Discussion

 Formulating business strategy Chapters 5 & 6 teaching
 Porter’s generic strategies Porter: 9-12  Critical
Strengthening a company’s competitive position thinking
 Beyond competitive strategy  Case
 Strategic moves, timing, and scope of operations discussion
to improve a company’s competitive position
 Case #4: Netflix’s Strategy in 2018: Does the Case 14

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 Company Have Sufficient Strength to Fight
Off aggressive Rivals?

6 Strategies for competing in foreign markets  Discussion

 Multi-domestic strategy Chapter 7; teaching
 Global strategy Porter: 13  Critical
 Case #5: IKEA’s International Marketing thinking
Strategy in China Case 22  Case
discussion
Midterm Exam Chapters 1-7

7 Corporate-level strategy  Discussion

 Formulating corporate strategies – diversification Chapter 8 teaching
 The concepts of corporate advantage and Porter: 14, 15, 16  Critical
parenting advantage thinking
 Analyzing the strategies of diversified companies  Case
– applying growth-share matrices Discussion
Case #6: The Walt Disney Company: Its Case 24
Diversification Strategy in 2018

8 Corporate-level strategy (cont…)  Case

 Case #7: PepsiCo’s Diversification Strategy in Case 23 discussion
2018: Will the Company’s New Businesses
Restore Its Growth

9 Strategy, Ethics, Social Responsibility, and  Discussion

Environmental Sustainability teaching
 Linking strategy with ethics, corporate social Chapter 9  Case
responsibility and environmental sustainability Discussion
 Case #8: Conflict Palm Oil and PepsiCo’s TBD
Ethical Dilemma

10 Strategy implementation  Discussion

 Creating fits between strategy and organizational Chapter 10 teaching
factors: The 7S framework  Case
 Building organizational capabilities discussion
 The “8S integrated” approach – the 7S +
Sustainability
 Case #9: Nucor Corporation in 2018: Case 27
Contending with the Challenges of Low-Cost
Foreign Imports and Launching Initiatives to
Grow Sales and Market Share

11 Strategy implementation (cont…)  Discussion

 Managing internal operations Chapter 11 teaching
 Case discussion #10: Starbucks in 2018: Case 29  Case
Striving for Operational Excellence and discussion
Innovation

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 12 Strategic evaluation and control  Discussion
 Corporate culture and leadership Chapter 12 teaching
 Case #11: Southwest Airlines in 2016: Culture, TBD  Case
Values, and Operating Practices discussion

Final Exam Chapters 8-12

Notes:
* Chapters refer to Thompson, Peteraf, Gamble, and Strickland (2020).
** Case in Thompson, Peteraf, Gamble, and Strickland (2020)
TBD To be distributed
HH/mm feb ugm