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Business Strategy Evolution

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The Wharton School of the University of Pennsylvania

Management 223 - Business Policy & STRATEGY
Spring Semester, 1999

Course Description and Syllabus

Instructors: Phanish Puranam (PP) & Michael G. Jacobides (MGJ)
Office: 2061(PP) /2055(MGJ) SH-DH (Management Dept. Suite)
Tel: 898-1231 (PP) / 898-1224 (MGJ)
Email: puranam@management.wharton.upenn.edu jacobides@management.wharton.upenn.edu
Class Hours: Tuesdays and Thursdays 12:00 to 1:30pm
Office Hours: By appointment (PP)

Course Overview

This course focuses on strategic management and strategic decision making and examines issues central to the long-term and short-term competitive position of the company or division / business unit. Students are placed in the role of key decision-makers or their advisors and asked to solve problems related to the development or maintenance of the competitive advantage of the firm.

We start the course by looking at strategy at the level of the business unit, which is the fundamental level for competitive analysis. The perspective taken is of a manager in a given unit with particular assets, capabilities and competitive challenges. We look at industry analysis, examine the sources of competitive advantage, and explore generic strategies: How can we analyze the competitive environment, and what are the basic options for business-unit level strategy? What are the bases of competitive advantage? What is the nature of the value chain? Following that, we look at how business units (but also entire corporations) build strengths, by analyzing the nature and value of business and corporate resources and capabilities.

The next module of the course examines strategic management at the corporate level. We first look at the vertical scope of the firm, i.e. the degree of its vertical integration. We also look at how the supply chain is

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