Strategy Formulation

This class is an introduction to strategic management and the decisions that firms make in their historical context. We look at the growth of the large multi-product firm in almost all countries in the world and the the process by which they internationalized their activities and, very often, were also forced to retreat from their international positions. We treat strategies as relation to two broad goals of the class: to understand why some companies are financially much more successful than others; and to analyze how managers can devise a set of actions (the strategy) and design processes and structures that allow their company to obtain a competitive advantage. You will learn the analytical tools developed in universities, in consulting and industrial firms, and even in the military. These tools include what companies do to outperform their rivals; to analyze the competitive moves of rival firms by game-theoretic concepts; and when it makes sense for companies to diversify and globalize their business. Applications will be to Walmart and Apple, European firms and to Asian firms, and developing country firms.