| Learning objectives |
The goal of this class is to establish a strong
link between theory and practice, in particular learning theories
and applying them in contexts to grasp the essence of their
foundations and to explore useful applications.
To be awarded the highest mark (12), the student, with no or just a
few insignificant shortcomings, must fulfill the following learning
objectives:
- Understand the main theoretical assumptions and rationales
behind external corporate strategies and diversification
- Analyze the competitive landscape in relation to an industry
and/or market.
- Understand and apply growth strategy models to specific cases
and discuss the implications.
- Reflect on value creation and synergies of external growth
strategies both at the individual operation level and at the
corporate level.
|
| Course prerequisites |
| No strict prerequisites. It would be ideal to
have some familiarity with basic strategic management
concepts. |
| Examination |
|
External
Growth Strategies:
|
| Exam
ECTS |
7,5 |
| Examination form |
Oral exam based on written product
In order to participate in the oral exam, the written product
must be handed in before the oral exam; by the set deadline. The
grade is based on an overall assessment of the written product and
the individual oral performance, see also the rules about
examination forms in the programme regulations. |
| Individual or group exam |
Individual oral exam based on written group
product |
| Number of people in the group |
2-5 |
| Size of written product |
Max. 25 pages |
|
The length of the paper depends on the group
size, such as:
2 people = 10 pages
3 people = 15 pages
4 people = 20 pages
5 people = 25 pages
The max pages does not include exhibits or appendixes. |
| Assignment type |
Project |
| Release of assignment |
Subject chosen by students themselves, see
guidelines if any |
| Duration |
Written product to be submitted on specified date and
time.
20 min. per student, including examiners' discussion of grade,
and informing plus explaining the grade |
| Grading scale |
7-point grading scale |
| Examiner(s) |
Internal examiner and second internal
examiner |
| Exam period |
Autumn |
| Make-up exam/re-exam |
Same examination form as the ordinary exam
No regulation
|
Description of the exam
procedure
The group assignment aims to generate a team-based dynamic
during which students have to collectively organize and apply
contents from the course discussed previously in class and
available in the course material.
Ideally, each group will perform a strategic analysis of a case
(which they will pick and I will advice on), applying frameworks
and tools in order to provide a conclusive assessment of the
specifc case from a "External Growth Strategies"
perspective.
Skill developed: team-working, simulation of real business
situations on decision making, delivery-minset developmemt,
writing.
|
|
| Course content, structure and pedagogical
approach |
|
Course Description
|
|
The course aims to provide knowledge about how firms use
external growth strategies to fulfill their corporate goals. In
particular, Alliances and Acquisitions have characterized the
economic scenario in many industries, not only at the level of
industrial dynamics, but also when looking at financial markets.
During the ’80s and the ’90s waves of alliances and acquisitions
depicted most of the global industries, in particular high-tech
industries, as valid (and preferred) alternatives to organic
growth. Yet, more than 50% of such agreements fail in generating
corporate value. As strategic responses to increases success
chances of external growth, corporations have mainly focused on: i)
set up venture capital funds (i.e. Corporate Venture Capital funds
– CVC) ii) international expansions in new geographies and, iii)
redesign corporate diversification approach towards value
creation.
Recent studies show that managers do not distinguish clearly
under which conditions they would need to consider the most
appropriate mode for external corporate growth. In particular,
alliance or acquisitions as alternative options are still a black
box for most of the firms. And, this could likely explain part of
the performance implications of these complex strategies.
Therefore, this course will bring together perspectives from
Marketing, Finance and Entrepreneurship into the main domain of
Strategy, in particular Corporate and Competitive, to more deeply
understand rationales and mechanisms related to external corporate
growth strategies.
Ideally, the course will be based on the following main
questions:
- In which businesses should a corporation compete?
- Which activities should be carried out inside the firm’s
boundaries and which should be outsourced?
- How does the institutional context affect a firm’s
diversification and organization?
- What are the most appropriate mechanisms for growth in
different settings (i.e. mergers, acquisitions, alliances, equity
investments)?
- How do M&As create/destroy value?
- What might influence the choice between organic and external
growth?
- What is an alliance? What is an acquisition? How does a manager
choose between and alliance and an acquisition?
- What are the performance implication of alliances and
acquisitions? How do we measure the performance of an alliance or
an acquisition?
- How do alliance and acquisition matter for innovation?
- What is the role of alliances and acquisitions for corporate
international expansion?
- How corporate entrepreneurship in the form of corporate venture
capital contribute to the corporate growth?
- What are the competitive implications of corporate venture
capital?
The main objective of this course is to familiarize students to
the matters that impact a firm's choice of strategy, scope, and
organization. The course builds on classical and recent theoretical
contributions in the fields of industrial organization and
organizational economics. Along with these theoretical
perspectives, the course ultimately is designed to focus on the
essential issues and problems of corporate strategy as experienced
by managers.
Course Contents, Topics and Structure
- An introduction to Diversification Strategies
- Corporate Scope: Horizontal vs. Vertical Integration
- Corporate Development I: Cooperative Strategies
- Corporate Development II: Acquisitive Strategies
- Corporate Development III: Alliances vs. Acquisitions
- International Corporate Growth
- External Growth and Innovation Strategies
- Growth through Entrepreneurship I: Corporate
Intrapreneurship
- Growth through Entrepreneurship I: Corporate Venture
Capital
|
|
| Description of the teaching methods |
The course aims to be an ideal balance between
case-based and research-driven teaching. In this regards, theories
and concepts related to corporate growth strategies, corporate
entrepreneurship, competitive dynamics and international strategy
will be presented, discussed and analyzed. In order to reach this
goal, economics, finance and management journals such the Journal
of Financial Economics, Strategic Management Journal and Harvard
Business Review will be used. Yet, case-based approach plays a
fundamental role in this course. So, the course draws extensively
on real corporate cases and to apply the explored theories of
growth and better connect them to real-life situations.
Ideally a lecture will have the following components:
• Theoretical and conceptual discussion of external corporate
growth strategies.
• Discussion of a business case to learn how to apply tools and
framework previously discussed.
• Exercises related to the case performed in class by small group
of students.
In order to unleash the full learning potential of this course,
students are expected to read carefully the business case assigned
to each session before coming to each specific class session. This
will be fundamental to obtain: i) rich and deep class discussion on
the case ii) productive small group exercise iii) ease to focus on
the application iv) create an interactive atmosphere in class.
These four main benefits of readings cases before coming to class
will increase chances to create a more effective understanding and
assimilation of the course contents. |
| Feedback during the teaching period |
| The faculty will be available to students
(individually and in groups) for on demand meetings regarding any
aspect of the course. |
| Student workload |
| Class attendance |
33 hours |
| Group work (individual effort) |
30 hours |
| Preparation for individual oral exam |
60 hours |
| Preparation for lectures (incl. reading) |
83 hours |
|
| Further Information |
- Highly interactive course in class
- Most of the work is performed in class
- Sessions are a mix of frontal teaching, class case discussion,
small groups exercise.
- Examination is about apply concepts discussed in class
- Group work is relevant to the learning
experience.
|
| Expected literature |
|
Academic readings, business cases and press articles will be
used. Also, self-prepared material by the faculty on real life
cases.
Ideally, one or two short readings per topic.
Book of reference (no need to acquire it):
Grant, R. Contemporary Strategy Analysis (from 7th edition
onward)
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