Social and Political Environment of Business

(BA 4305-004)
Instructor: Lı́via Markóczy
Office: 4.206
Phone: 972-883-4828
e-mail: Please, use WebCT
Office hours: Tuesdays 2:00pm-3:30pm
Course Web-site is on WebCT
Writing tutor: Sarah Moore
e-mail to writing tutor: sem054000@utdallas.edu

Spring, 2007

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Social and Political Environment of Business BA4305

Course co-requisite and prerequisites

Co-requisite: BA 4371;
Prerequisites: BA 3341, BA 3351, BA 3352, BA 3361 and BA 3365

Course description
The Social and Political Environment of Business course is a capstone course
aiming to integrate what you have learned in other classes, including finance,
accounting, operations, MIS, marketing, and organizational behavior and use
this knowledge to study the strategic management of the firm as well as the
responsibilities of a general manager.
The approach of the class is practical and problem oriented. The major part
of the course will involve applying concepts, analytic frameworks, and intu-
ition to the strategic issues that real-world companies face. These issues are
presented in case studies and in the form of a several round simulation exer-
cise. For the class to work well – and for you to benefit from it – attendance
and preparation for each class meeting is essential.

Student learning objectives/ Outcomes

By the end of this course, students must be able to do the following:

1. To complete an external and internal analysis of a firm, including a

detailed analysis of the competitive environment of the firm, the iden-
tification of the (sustainable) competitive advantages of the firm and
the resources and capabilities that lead to these advantages;

2. To complete an assessment of the firm’s current strategy, including

the ability to identify the strategic problems of a firm and to develop
solutions to a firm’s strategic issues;

3. To integrate skills acquired in finance, accounting, marketing, and MIS

courses to create a successful generic strategy to a simulated firm.

4. To develop competency in written communications.

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Course Requirements
This course requires extensive reading, writing, active discussions, and dili-
gent attention to the exercises. Each student will be expected to spend an
average of 4 hours a week on this course in addition to class time. This is
particularly true during the first weeks of the class. If a student cannot com-
mit this amount of time and effort on this course, he or she must realize that
it may be very difficult to earn a good grade. Failure to fully prepare for class
is also a detriment to one’s fellow students. It is the student’s responsibility
to thoroughly read the syllabus, fully understand all the requirements, and
keep track of all the important dates in order to be succeed.

Required Textbook and Materials

The required texts of the course are

• Gregory G. Dess, G. T. Lumpkin and Alan B. Eisner (2005): Strategic

Management. Creating competitive advantages (3rd edition). McGraw-
Hill: Boston. ISBN-10: 0-07-312457-5
• Additionally, there is a reader for the course that contains the cases and
exercises. There reader is available to purchase from the bookstore.
• Capstone Business Simulation Management Simulation Inc. (http:
//www.capsim.com/). Please, note that to participate in this simula-
tion exercise you will need to register at the above web-site. When you
register, you will need to purchase a registration number. With ques-
tions regarding the simulation exercise please call the following toll free
number during working hours: 877-477-8787

Grading
Grade will be determined as follows:
Individual exams 50%
Individual written assignments 20%
Group simulation 20%
Class participation 10%

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See details of grading and evaluations at the end of the syllabus.

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Session 1 : January 9: Introduction

Lecture: Introduction of the course. Introduction of the Capstone Simulation
Exercise.
Simulation Exercise: Group formation
Homework: Read the syllabus and the students’ guide for the simulation
exercise very carefully!

Session 2 : January 16: Strategic Manage-

ment: An overview
In class exercises (these will be handed out in class)

• Panalba exercise

• Decision making exercise

Lecture: An overview of strategic Management. Biases in decision making.

The importance of situation analysis in the simulation exercise.
Reading: Dess, Lumpkin and Taylor: Chapter 1
Simulation Exercise: The following homework is due prior to this class: (1)
Register for the simulation exercise; (2) down-load the capstone courier; (3)
bring the printed out capstone courier to class

Session 3 : January 23: Analyzing the exter-

nal environment of the firm
In class exercises (these will be handed out in class)

• Price setting exercise

• Moon landing exercise

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Lecture: Analyzing the external environment of the firm.

Reading: Dess, Lumpkin and Taylor: Chapter 2
Simulation Exercise: Situation analysis is due to this class

Session 4 : January 30: More about the exter-

nal environment of the firm
For class discussion:

• Case: Video Game Industry: Power Play A

Lecture: More about the external environment of the firm. Game theoretical
reasoning. SWOT analysis. Strategies for the Simulation Exercise.
Reading: Dess, Lumpkin and Taylor: Re-read Chapter 2
Simulation Exercise: “Getting Started” tutorial homework is due. You com-
pleted the exercise if you did the tutorial and answered the quiz questions
that follow the tutorial. You also need to complete the solo simulation exer-
cise for this class. Note that there are 3 rounds for this exercise and you will
need to complete all 3 rounds for the homework.

Session 5 : February 6: Analyzing the internal

environment of the firm.
For class discussion:

• Case: Bitter Competition: The Holland Sweetener Co vs NutraSweet

(A)

Lecture: Analyzing the internal environment. Creating and sustaining com-

petitive advantages. The most common mistakes in the simulation exercise.
Reading: Dess, Lumpkin and Taylor: Chapter 3, and Chapter 5
Simulation Exercise: Group practice round is due prior to this class

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Session 6 : February 13: Assessing Intellectual

Capital
For class discussion:

• Case: Wal-Mart Stores discount operations

Lecture: Assessing Intellectual Capital

Reading: Dess, Lumpkin and Taylor: Chapter 4
Simulation Exercise: Formal round 1 is due prior to class.

Session 7 : February 20: Corporate level strat-

egy
For class discussion:

• Case: Southwest Airlines

Lecture: Corporate level strategy: Creating value through diversification.

Reading: Dess, Lumpkin and Taylor: Chapter 6
Simulation Exercise: Formal round 2 is due prior to class.

Session 8 : February 27: Exam

Exam 1.
Simulation Exercise: Formal round 3 is due prior to class.

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Session 9 : March 13: International Strategy:

Creating value through diversification
For class discussion:
• Exercise: Plastico Inc.
• Case: Cooper Industries Corporate Strategy (A)
Lecture: International Strategy: Creating value in Global Markets
Reading: Dess, Lumpkin and Taylor: Chapter 7
Simulation Exercise: Formal round 4 is due prior to class.

Session 10 : March 20: Strategic control and

corporate governance
For class discussion:
• Case: Silvio Napoli at Schindler India (A)
Lecture: Strategic control and corporate governance.
Reading: Dess, Lumpkin and Taylor: Chapter 9
Simulation Exercise: Formal round 5 is due prior to class.

Session 11 : March 27: Strategic leadership,

excellence, ethics and change. Stakeholder analy-
sis
For class discussion:
• Case: Nucor
Lecture: Strategic leadership, excellence, ethics and change
Reading: Dess, Lumpkin and Taylor: Chapter 11
Simulation Exercise: Formal round 6 is due prior to class.

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Session 12 : April 3: Managing innovation

For class discussion:

• Case: Nike: Hitting the Wall

• Exercise: Forced retrenchment exercise

Lecture: Managing innovation

Reading: Dess, Lumpkin and Taylor: Chapter 12
Simulation Exercise: Formal round 7 is due prior to class.

Session 13 : April 10: Simulation exercise re-

ports and presentations

Simulation Exercise: Formal round 8 is due prior to class. Written group

reports are due for this class. Group presentations.

Session 14 : April 17: Simulation exercise re-

ports

Simulation Exercise: Group presentations

Session 15 : April 24: Exam 2

Exam

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Grading Policy and Course & Instructor Poli-

cies
Individual Case Analysis
Students must choose 2 cases from the syllabus for producing a written case
analysis. One of these case write-ups must be submitted in a class that
precedes the class when the midterm is scheduled. Each case analysis should
be submitted at the beginning of each class when the case is scheduled to
be discussed. No case write-ups are accepted after we discussed a
case in class even if you did not attend the particular class! Each
case analysis should be about seven to eight pages long (double spaced) and
should have a one-two page(s) executive summary, that summarizes the key
points of the case write-up. Note, that no make up cases are available if you
left the case write-ups so late that there are no 2 cases left to analyze.
Please, note that you must submit two copies of each case analysis. One
of these will be marked by me or by my teaching assistant, while the other
will be marked by a writing tutor. Please, mark the copy that goes to the
writing tutor as a “WRITING ASSIGNMENT”. Please, note that it is your
responsibility to bring two copies of your paper to class and mark it
clearly which one is for the writing tutor. To avoid confusion, no single copy
of a case write-up nor electronic submissions are accepted!
Each case analysis will be evaluated separately based both on the content
and on the quality of the writing. The content portion will be assessed on how
well you applied the theoretical frameworks that were discussed in previous
classes to solve the case. I will also give you concrete questions for each case
in the class that precedes the cases’ due date. These questions will also be
posted on WebCT along with the presentation slides of each class.

Evaluation criteria for writing quality

The writing portion of the paper will be evaluated based on three criteria:

1. Appropriate organization, mechanics, and style

2. Incorporation and interpretation of source material

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3. Effectiveness of the written arguments

Table 1: Appropriate organization, mechanics, and style

Criteria 0 1 2 Total—
Grammar Several errors One or two errors No mistakes —
Spelling Multiple errors One or two error No errors —
Word Choice Below average Good Excellent —
Organization and Flow Poor Good Very good —
Citation of Sources Missing citation Minor errorss Correct citation —
Total Points —

The writing portion will be assessed by the writing tutor using the criteria
that are listed in Table 1-2-3 as follows:

• A paper scoring a zero in any of the five criteria must be rewritten.

• For all papers totaling 6 or under, the paper must be rewritten.
• For all papers totaling 5 or under, the student must make an appoint-
ment with the writing tutor. You will be able to set up an appointment
by sending an e-mail to the writing tutor via WebCT.

Table 2: Incorporation and interpretation of source material

Criteria 0 1 2 Total—
Citation (In Text) Missing citations Minor errors Correct citations —
Works Cited Missing entries Minor errors Correct citations —
Quotations Floating Slightly choppy Seamless —
Data presentation Data in text Some tables Clear tables —
Total Points —

Please, when you hand me a rewrite mark it clearly as a “REWRITE FOR

THE WRITING TUTOR.” Students with a higher score on the original

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Table 3: Effectiveness of the written arguments

Criteria 0 1 2 Total—
Problems identified Not identified Not precise Clearly stated —
Evidence No evidence Support is vague Clear evidence —
Argument Poor Good Well organized —
Solutions Not offered Vague Specific —
Total Points —

writing portion can also choose to rewrite their papers to further improve
the writing scores. The revised assignment should be submitted at the next
class with the originally graded case analysis attached. A new credit for the
writing portion will then be given based on the writing tutor’s reassessment
of the revised work.

Individual Class Participation

Class participation will be graded based on the quantity and quality of con-
tributions to the case discussion during the class. With regard to quality,
some of the following criteria normally applied are

• Are the points that have been made relevant to the discussion?

• Are the points simple recitations of case facts, or have new implications
been drawn?

• Is there evidence of analysis rather than mere expression of opinions?

• Are the comments linked to those of others?

• Did the contribution further the class’ understanding of the issue?

Each students will begin the course by receiving half of the possibly attainable
class participation point, but can lose points by repeated absence from class
or lack of professional conduct during the class (e.g., repeated late arrival,
interrupting others etc).

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Group Simulation Exercise

The group simulation exercise will allow students to practice some of the key
concepts and theories learned in the course while managing in a competitive
business environment. There will be eight formal rounds in this simulation
exercise. Each round is equivalent to a calendar year of the business. Stu-
dents are expected to have carefully read the manual.
When possible, class time will be given to the simulation exercise, but in
addition to this time, students are expected to meet outside of the class
time to prepare weekly simulation decisions. To be effective team members,
students should prepare for the team meetings by analyzing data in their
particular area of responsibilities and prepare the various types of documents
for presentation to the team. Group decisions should be up-loaded to the
simulation web-site by no latter then 3am on the day of the class. Groups
can review the results of each round after the above deadline is passed.
The group grade for this simulation exercise will be based on the following:

• Group Simulation Performance

• Written and oral report on the simulation exercise:

The reports should describe the original strategy of the company, the
rationale behind this strategy, the change in the company’s strategy
over-time, the result of the simulation exercise and what did the group
learn from the exercise. The oral report should not exceed 25 minutes,
while the written report should be at maximum six pages long (double-
spaced).

Please, note that to avoid free riding, the group grade will only assigned
to those team members who did a fair share of work in the simulation ex-
ercise. The contribution of the team members to the group effort will be
evaluated by each team member within the team and students who are con-
sistently evaluated by other team members as those who failed to make a
fair contribution to the team effort will receive a lesser grade than those who
contributed fairly.

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Individual Exams
There will be two non-cumulative multiple-choice exams during the semester.
They will serve to evaluate how well students hasvemastered the knowledge
and can apply the basic theories and concepts learned during each stage of
the course. Students should bring scan-tron sheets and pencils for the exams.
No make-up exams will be given! If a student has a dispute with the
grading, he or she can request in writing that the portion of the exam be
reevaluated with the supporting evidence clearly stated.

Final Grade
Following the university’s guideline for grade distribution, the final grade of
a student will be based on the relative standing of his or her total credit
points accumulated from all the requirements as compared with the rest of
the class.
In appliance with the university’s policy of confidentiality, no grade informa-
tion will be transmitted via phone or e-mail.

Student Conduct & Discipline

The University of Texas System and The University of Texas at Dallas have
rules and regulations for the orderly and efficient conduct of their business.
It is the responsibility of each student and each student organization to be
knowledgeable about the rules and regulations which govern student conduct
and activities. General information on student conduct and discipline is
contained in the UTD publication, A to Z Guide, which is provided to all
registered students each academic year.
The University of Texas at Dallas administers student discipline within the
procedures of recognized and established due process. Procedures are defined
and described in the Rules and Regulations, Board of Regents, The Univer-
sity of Texas System, Part 1, Chapter VI, Section 3, and in Title V, Rules on
Student Services and Activities of the university’s Handbook of Operating
Procedures. Copies of these rules and regulations are available to students in
the Office of the Dean of Students, where staff members are available to assist
students in interpreting the rules and regulations (SU 1.602, 972/883-6391).

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A student at the university neither loses the rights nor escapes the responsi-
bilities of citizenship. He or she is expected to obey federal, state, and local
laws as well as the Regents’ Rules, university regulations, and administrative
rules. Students are subject to discipline for violating the standards of con-
duct whether such conduct takes place on or off campus, or whether civil or
criminal penalties are also imposed for such conduct.

Academic Integrity
The faculty expects from its students a high level of responsibility and aca-
demic honesty. Because the value of an academic degree depends upon the
absolute integrity of the work done by the student for that degree, it is im-
perative that a student demonstrate a high standard of individual honor in
his or her scholastic work.
Scholastic dishonesty includes, but is not limited to, statements, acts or
omissions related to applications for enrollment or the award of a degree,
and/or the submission as one’s own work or material that is not one’s own.
As a general rule, scholastic dishonesty involves one of the following acts:
cheating, plagiarism, collusion and/or falsifying academic records. Students
suspected of academic dishonesty are subject to disciplinary proceedings.
Plagiarism, especially from the web, from portions of papers for other classes,
and from any other source is unacceptable and will be dealt with under the
university’s policy on plagiarism (see general catalog for details). This course
will use the resources of turnitin.com, which searches the web for possible
plagiarism and is over 90
Email Use The University of Texas at Dallas recognizes the value and ef-
ficiency of communication between faculty/staff and students through elec-
tronic mail. At the same time, email raises some issues concerning security
and the identity of each individual in an email exchange. The university
encourages all official student email correspondence be sent only to a stu-
dent’s U.T. Dallas email address and that faculty and staff consider email
from students official only if it originates from a UTD student account. This
allows the university to maintain a high degree of confidence in the identity of
all individual corresponding and the security of the transmitted information.
UTD furnishes each student with a free email account that is to be used in all
communication with university personnel. The Department of Information

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Resources at U.T. Dallas provides a method for students to have their U.T.
Dallas mail forwarded to other accounts.

Withdrawal from Class

The administration of this institution has set deadlines for withdrawal of any
college-level courses. These dates and times are published in that semester’s
course catalog. Administration procedures must be followed. It is the stu-
dent’s responsibility to handle withdrawal requirements from any class. In
other words, I cannot drop or withdraw any student. You must do the proper
paperwork to ensure that you will not receive a final grade of ”F” in a course
if you choose not to attend the class once you are enrolled.

Student Grievance Procedures

Procedures for student grievances are found in Title V, Rules on Student Ser-
vices and Activities, of the university’s Handbook of Operating Procedures.
In attempting to resolve any student grievance regarding grades, evaluations,
or other fulfillments of academic responsibility, it is the obligation of the stu-
dent first to make a serious effort to resolve the matter with the instructor,
supervisor, administrator, or committee with whom the grievance originates
(hereafter called ”the respondent”). Individual faculty members retain pri-
mary responsibility for assigning grades and evaluations. If the matter cannot
be resolved at that level, the grievance must be submitted in writing to the
respondent with a copy of the respondent’s School Dean. If the matter is
not resolved by the written response provided by the respondent, the stu-
dent may submit a written appeal to the School Dean. If the grievance is
not resolved by the School Dean’s decision, the student may make a written
appeal to the Dean of Graduate or Undergraduate Education, and the deal
will appoint and convene an Academic Appeals Panel. The decision of the
Academic Appeals Panel is final. The results of the academic appeals process
will be distributed to all involved parties.
Copies of these rules and regulations are available to students in the Office
of the Dean of Students, where staff members are available to assist students
in interpreting the rules and regulations.

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Incomplete Grade Policy

As per university policy, incomplete grades will be granted only for work
unavoidably missed at the semester’s end and only if 70% of the course work
has been completed. An incomplete grade must be resolved within eight (8)
weeks from the first day of the subsequent long semester. If the required work
to complete the course and to remove the incomplete grade is not submitted
by the specified deadline, the incomplete grade is changed automatically to
a grade of F.

Disability Services
The goal of Disability Services is to provide students with disabilities edu-
cational opportunities equal to those of their non-disabled peers. Disability
Services is located in room 1.610 in the Student Union. Office hours are
Monday and Thursday, 8:30 a.m. to 6:30 p.m.; Tuesday and Wednesday,
8:30 a.m. to 7:30 p.m.; and Friday, 8:30 a.m. to 5:30 p.m.
The contact information for the Office of Disability Services is: The Univer-
sity of Texas at Dallas, SU 22 PO Box 830688 Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)
Essentially, the law requires that colleges and universities make those rea-
sonable adjustments necessary to eliminate discrimination on the basis of
disability. For example, it may be necessary to remove classroom prohibi-
tions against tape recorders or animals (in the case of dog guides) for students
who are blind. Occasionally an assignment requirement may be substituted
(for example, a research paper versus an oral presentation for a student who
is hearing impaired). Classes enrolled students with mobility impairments
may have to be rescheduled in accessible facilities. The college or univer-
sity may need to provide special services such as registration, note-taking, or
mobility assistance.
It is the student’s responsibility to notify his or her professors of the need for
such an accommodation. Disability Services provides students with letters
to present to faculty members to verify that the student has a disability and
needs accommodations. Individuals requiring special accommodation should
contact the professor after class or during office hours.
Religious Holy Days The University of Texas at Dallas will excuse a student
from class or other required activities for the travel to and observance of a

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religious holy day for a religion whose places of worship are exempt from
property tax under Section 11.20, Tax Code, Texas Code Annotated. The
student is encouraged to notify the instructor or activity sponsor as soon
as possible regarding the absence, preferably in advance of the assignment.
The student, so excused, will be allowed to take the exam or complete the
assignment within a reasonable time after the absence: a period equal to the
length of the absence, up to a maximum of one week. A student who no-
tifies the instructor and completes any missed exam or assignment may not
be penalized for the absence. A student who fails to complete the exam or
assignment within the prescribed period may receive a failing grade for that
exam or assignment. If a student or an instructor disagrees about the nature
of the absence [i.e., for the purpose of observing a religious holy day] or if
there is similar disagreement about whether the student has been given a
reasonable time to complete any missed assignments or examinations, either
the student or the instructor may request a ruling from the chief executive
officer of the institution, or his or her designee. The chief executive officer
or designee must take into account the legislative intent of TEC 51.911(b),
and the student and instructor will abide by the decision of the chief ex-
ecutive officer or designee. Off-Campus Instruction and Course Activities
Off-campus, out-of-state, and foreign instruction and activities are subject
to state law and University policies and procedures regarding travel and risk-
related activities. Information regarding these rules and regulations may be
found at the website address given below. Additional information is avail-
able from the office of the school dean. (http://www.utdallas.edu/Business
Affairs/Travel Risk Activities.htm)
These descriptions and timelines are subject to change at the discretion of
the Professor.

Important Notes
Throughout the semester, each student is expected to follow the university’s
guideline on student conduct with regard to cheating and other dishonorable
behaviors. Severe consequences can occur if such rules are not followed.
The instructor also reserves the right to deduct from a student’s individual
class participation credit if the student has shown severe non-constructive
behavior in class (such as disrupting the class or abusing another individual),
in addition to other disciplinary actions.

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If a student is absent or late to a class meeting, it will be his or her respon-

sibility to catch up with all the missed materials including to learn of any
announcement made while the student was absent. No make-up exams or
lectures will be given. It will also be the students’ responsibility to accept
any consequences that may result from absences. No late assignments will
be accepted.
Finally, it is a student’s responsibility to read the syllabus thoroughly and
regularly and keep track of all the important dates and requirements every
week. Experience shows that the answer for most questions that students
ask can in fact be found in the syllabus.

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