TeachingModule_Formulation - TEACHING MODULE OUTLINE FOR...

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TEACHING MODULE OUTLINE FOR INSTRUCTORS How strategy shapes structure For use in Strategy/Strategic Management Courses I. Teaching Module Overview: This teaching module fills an important void in the field of strategy. For the last thirty years, the field of strategy has been dominated by I/O Economics’ structuralist approach to strategy where the central paradigm has rested on the structure-strategy/conduct-performance framework. Here structure determines strategy, which leads to performance consequences. Because the structure of an industry is taken as given the aim of strategy becomes how to best position a company against the competition to win a greater share of a given economic pie. This environmental deterministic view of strategy casts strategy as a zero-sum game where one company’s gain comes at another company’s loss. This view of strategy was made prevalent and is best represented by competitive strategy. Under competitive strategy firms are taught to analyze existing industry conditions and to best position themselves against the competition. Here the strategic choices for firms are to pursue either differentiation or low cost. Hence, strategy is seen as making the value-cost trade-off. While understanding how to compete in existing market space is important, this view of strategy leaves unaddressed the critical challenge of how to redefine industry boundaries and create new market space. To learn how strategy shapes structure to create new market space, this strategy module focuses on how to reconstruct industry boundaries, how to reach beyond existing demand, how to pursue differentiation and low cost simultaneously, and how to build profitable business models to succeed in new market spaces. Here, strategy is seen as breaking the existing value-cost trade-off and thereby creating a blue ocean of uncontested market space. This shifts the focus of strategy from a zero-sum towards a non-zero-sum paradigm. Under this theory of strategy, strategy determines structure that leads to performance consequences. Here, even an unattractive industry can be made attractive by reconstructing market boundaries through companies’ conscious efforts. II. Pedagogical Approach: This module introduces high impact pre-tested teaching materials to fill this void in the field of strategy. Specifically, of the five sessions in this module, three use short cases with engaging DVD theory-based movies that take advantage of the latest advances in multimedia production, and one uses an interactive case, allowing professors/instructors to use
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conceptually rich live action settings in the classroom. Both the DVD movies and the interactive case focus on fascinating corporate settings, and are accompanied by thorough Teaching Notes that show professors/instructors how to effectively lead high-impact class discussions. The concrete benefits to professors/students of these pedagogical materials include: 1. The DVD theory-based movies that come with short paper cases and the interactive
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This note was uploaded on 03/17/2012 for the course BSA 102 taught by Professor Lim during the Spring '12 term at Baylor College of Dentistry.

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TeachingModule_Formulation - TEACHING MODULE OUTLINE FOR...

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