Module Code and Title:      MGT309 Competitive Advantage: Strategic Management                       

Programme:                                      Bachelor of Business Administration

Credit Value:                                     12

Module Tutors:                                 Shreejana Pradhan, Enchu Lhamo,Dip Raj Pradhan,Kezang Wangchuk,Carl Wonder,Priyanka Sharma,Jeroen Uittenbogaard

Module Coordinator:                        Jeroen Uittenbogaard

General Objective: Building on the pre-requisite modules, this module aims to provide students an opportunity to analyse, at an advanced level, competitive advantages of a nation, company or individual. Students also learn to develop and implement appropriate responses to changes in the competitive environment, as well as develop strategic management capabilities, and apply them to specific situations.

Learning Outcomes – On completion of the module, students should be able to:

• Apply current theories of competitive advantage
• Analyse Bhutan’s competitive advantages as a country in the context global business scenario
• Develop strategies to respond to actual and anticipated changes in Bhutan’s competitive environment
• Identify competitive advantage at organizational level as a response to changing market environment
• Perform SWOT analysis for Bhutanese businesses enterprises

1. Formulate effective strategies in reference to selected Bhutanese organizations
2. Evaluate current competitive advantages of business enterprises
3. Design effective business strategy in the context of competitive business environment
4. Formulate a strategic plan to integrate business units towards the achievement of common strategic goals
5. Assess the strategic changes of competitors to maintain company’s competitive advantage

Teaching and Learning Approach:

Assessment Approach:

A. Short Practice Exercises Applying Concepts to Concrete Situations: Portion of Final Marks-10%

Each student will complete 2 exercises on the application of the various concepts and theories discussed to concrete business situations, e.g. company SWOT analysis, country advantages, etc. One will be take-home exercises with reports due of 600 words each, while one will be in-class with topics and reading given in advance (300-600 words due at the end of 40 minutes). Each exercise, worth 5% will be evaluated on:

            1%       identifying the problem

            1%       choosing the best approach for the analysis

            2%       analysis

            1%       drawing effective action conclusions

B. Problem Solving Case Study to Improve Competitive Advantage: Portion of Final Marks-20%

Each student will solve different specific problems and write a 600-word summary on how to maintain or improve competitive advantage, based on current business topics in the news.

5%       defining the business problem presented by real situations

5%       effective conclusions with economic, market and strategic analysis

C. Project: Portion of Final Marks-20%

In groups of 4, students will analyse one business problem related to creating and maintaining competitive advantage or strategy using techniques taught in class. The output will be a 2500-word paper, including problem definition, data, analysis, conclusions and references. A follow-up group presentation will be approximately 10 minutes, and include slides, along with an additional 5 minutes Q&A.

1%       clear definition of a problem

1%       using appropriate techniques

2%       gathering useful data and information from multiple sources

2%       analysis of the problem

2%       action-oriented conclusions to improve and maintain strategic and competitive position

2%       quality of the writing (language, organization, references)

5%       group presentation mark:

                        Cohesiveness: 2%

                        Organization: 2%

                        Quality of presentation materials: 1%

5%       Individually assessed process score (contribution to the group output)

D. Midterm Examination: Portion of Final Marks-10%

Students will take a written exam of 2-hour duration covering topics up to the mid-point of the semester.

E. Semester-end Examination: Portion of Final Marks-40%

The module will have a semester-end exam for 2 hours covering the entire syllabus. The question will be divided into two parts – Part A (carrying 40% of the exam weightage) will be mostly of short answer including objective questions. Part-B (carrying almost 60% of the exam weightage) will be mostly of essay type or an extended response to the given question. This part of the question requires students to apply, analyse, and evaluate or construct knowledge and skills. Cases will also be used to test the levels of knowledge.

Pre-requisites:MGT101 Introduction to the Business Environment

                          MGT102 Management Theory and Practice

Subject Matter:

1. Competitive Advantage: Country Level
   • Traditional approaches
     • “Factor” conditions: infrastructure, financial resources natural and human resources
     • Related and supporting industries
     • Local demand for product, services
     • Strategy, structure and rivalry among competitors
     • Governmental factors: restrictions, incentives, competition by government entities
   • Ease of Doing Business: assessment and ranking
     • Key factors of ranking
     • Bhutan’s ranking, strengths and weaknesses
   • Bhutan vs SAARC countries: Analysis of advantages and disadvantages
   • Strategies to enhance competitive advantage
   • Bhutan’s competitive advantage since 1970

2. Competitive Advantage: Company Level
   • Differentiation and competitive advantage
     • Value chain
     • Cost advantages
     • Differentiation
     • Technology
     • Strategic alliances
   • Porter’s techniques for analyzing competitive advantages
     • Structure of an industry
     • Competitor intelligence system
     • Market signals
     • Industry life cycle: emerging/fragmented, maturing, declining
   • Internal factors (resources, capital, people, technology, flexibility, brand/reputation, political factors)
   • External factors and relationships affecting competitive advantage
   • Changes in relative competitive situation: identifying changes, initiating actions to respond to or cause change)
   • Disruptive change in an industry
   • Strategies to enhance competitive advantage
   • Comparative study of competitive advantage among Bhutanese companies
   • Competitive advantage and the role of government
     • Government owned companies
     • Anti-trust actions
     • Regulation, tax impact on competitive relations of companies

3. Competitive Advantage: Personal Level
   • Inherent traits (e.g. intelligence, family connections)
   • Advantages which can be learned or developed (education, motivation, skills)
   • Personal development in response to change
   • Personal development in response to Bhutanese business and economic environment

4. SWOT Analysis (regarding a company, a new product, or person)
   • Assessment of external and internal environment
   • Limitations of SWOT analysis
   • Application of SWOT analysis in the context of Bhutanese business enterprises

5. Special Case: Start-up Company
   • Disruptive, planned, incremental, and transformational change
   • First mover advantage versus additional risks
   • Impact of new entrant on costs, prices, relations within the industry
   • Responses by competitors
     • Pricing and pricing strategies
     • New products, services across entire industry
     • Changes in supply chain dynamics
   • Resistance by potential customers to change
   • Competing against government controlled industry
   • Unique factors to be evaluated when starting companies in Bhutan

6. Strategic Management
   • Maintaining competitive advantages
     • Deterring new entrants
     • Anticipating changes in competition
     • Avoid complacency, motivating managers to innovate
     • Continuous scanning: PESTEL
   • Top-down versus bottom-up planning: uses; limitations
   • Performance standards and motivation of managers to implement plans
   • Role of the Board of Directors: different perspectives, external connections
   • Unique strategy issues for Bhutanese companies in relation to global economy

Reading Lists:

1. Essential Readings
   • Barney, J.B., & Hesterly, W.S. (2014). Strategic management and competitive advantage: Concepts and cases (5th ed.). Pearson.
   • Porter, M. The five competitive forces that shape strategy. Harvard Business Review. (2008, January 1). Retrieved from the Harvard Business Review website: http://www.exed.hbs.edu/assets/documents/hbr-shape-strategy.pdf
   • Porter, M. (1990). Competitive advantage of nations. Free press.
   • Porter, M. (n.d.). Competitive advantage- creating and sustaining superior performance.1998. Free Press.
   • David, F.R. (2012). Strategic management: Concepts and cases. (14th ed.). Prentice Hall.
2. Additional Readings
   • Kamzi, A. (2012). Strategic management and business policy (3rd ed.). Tata Mc Graw Hill Edu. Pvt Ltd.
   • Lomash, S., & Mishra, P.K. (2011). Business policy strategic and management. New Delhi: Vikash Publishing House Pvt Ltd.
   • Wheelen, T.L., & Hunger, J.D. (2009). Concepts in strategic management and business policy. (12th ed.). Pearson Prentice Hall.
   • Williams, K. (2009). Strategic management. London: Dorling Kindersley.
   • Jannesson, E., Nilsson, F., & Rapp, B. (2014). Strategy, control and competitive advantage: Case study evidence. Springer.
   • The World Bank. Annual reports on ease of doing business.

Date: July, 2017